Health Savings Accounts are now become even more enticing as the best alternative for decreasing the cost of medical health insurance premiums. The benefit of the above-the-line deduction on your taxes really makes the HSA a shoe in for most American. The great added benefit so you don't forget, is your extra tax-deferred retirement saving to use later in life.
We were awaiting these additional updates and changes, and now I am excited to see them become law.
President George W. Bush signed the Health Opportunity Patient Empowerment Act of 2006 today, enhancing Americans' access to tax-advantaged health care savings. The law, part of the Tax Relief and Health Care Act of 2006, provides new opportunities for health savings account (HSA) participants' to build their funds. (US Treasury, dated December 20, 2006)
"Health savings accounts are improving the way Americans obtain the care they need. This bill makes HSAs more flexible and makes it easier for participants to put money aside for their personal health care," said Treasury Assistant Secretary for Tax Policy Eric Solomon.
I will address more of the specific benefits in upcoming posts.
