Health Savings Accounts

... Another Valuable Retirement Savings Plan Tool

Are you eligible to open a health savings account (“HSA”)? If yes, and you have not already opened one, you should consider doing so as this type of account is another tax-advan­taged way to save for any medical expenses you will likely have in retirement.

An HSA is a tax exempt account that can be used to pay for medical expenses you or your family may incur. There are three key tax benefits to having an HSA. First, the money going into an HSA is pre-tax (if coming directly from your em­ployer) or tax-deductible (if coming directly from you). Second, any interest, dividends, or other earnings inside your HSA are tax free.

 

Indirect IRA Rollovers

Only One Per 12-month Period

Beginning in 2015, the IRS implemented a new rule regarding IRA rollovers. This rule changes how IRA rollovers are treated for tax purposes in certain instances. According to this new rule, “you can make only one rollover from an IRA to another (or the same) IRA in any 12-month period, regardless of the number of IRAs you own (Announcement 2014-15 and Announce­ment 2014-32). The limit will apply by aggregat­ing all of an individual’s IRAs, including SEP and SIMPLE IRAs as well as traditional and Roth IRAs, effectively treating them as one IRA for purposes of the limit.” (www.irs.gov/retirement-plans/ira-one-rollover-per-year-rule). For example, if you have 3 separate IRA accounts and decide to take some money out of each of these accounts and then “roll” this money into a new 4th IRA ac­count within 60 days, you will have accomplished 3 different rollovers within a 12-month period and thus run afoul of the new rule.

 

Travel Medical Insurance

...Should You Purchase It Before You Head Overseas?

It’s that time of year. Many families are heading off around the country and the globe for vacation. Perhaps you are off to a new or exotic destination or are in the midst of planning a fall or winter getaway? If you have a trip on the horizon — particularly an international trip — you should consider whether or not to purchase travel medical insurance prior to your departure. Many travelers assume their regular health insur­ance will cover them should they need medical care outside the U.S. However, most times this is not the case. Moreover, in those relatively rare instanc­es when traditional health insurance offers coverage to a policyholder outside the U.S., the coverage is often extremely lim­ited in its scope and may not cover big ticket items like medi­cal evacuation costs.