Illinois Estate Planners' Checklist
Health Savings Accounts are available for individuals who have high-deductible health plans. In 2009, a plan is considered high deductible if it has an annual deductible of at least $1,150 and annual out-of-pocket expenses that the insured must pay for covered benefits cannot exceed $5,800.
Unlike Flexible Savings Accounts, Health Savings Account holders can carry over balances from year to year until the account holder’s death, and if planned properly, until the account holder’s spouse’s death.
All contributions to, distributions from and income earned in the account are free from federal income tax as long as the assets are used to pay for qualified medical expenses. Depending on the amount contributed and distributed from the account and how long the account has been established, Health Savings Account balances have the potential to be substantial.
For information about Heath Savings Accounts and how they can be incorporated in your Estate Plan, contact a law firm that concentrates in Estate Planning.
