…or should we say “Cup of Nog”…
The Holidays are here and most of us are enjoying friends and family in this special season. Although our minds are not focused on income taxes and year end planning, there may be some last minute tax savings items to take care of before the new year rolls in. One of the few tax “freebies” out there still are “Health Savings Accounts” or HSAs for short. Contributions to HSA’s within certain limits are adjustments to income much like IRA contributions. To translate -contributions reduced your Adjusted Gross Income -AGI. The nice thing about HSAs however is that withdrawals and distributions for qualified medical expenses are not taxable and if amounts are not withdrawn, the balance can remain in the account and enjoy tax free interest earnings. Amounts can be distributed and withdrawn in a later year if needed for qualified medical. Also note that contributions for 2010 can be made up until April 15, 2010 just like IRA contributions!
A friend and business associate of mine, Lodema Adams, has a wonderful HSA resource on her website which we are including here. I encourage you to read the information on the HSA link and if you have any questions about setting up an account there is contact information for Adams Insurance Company agents listed. Lodema Adams is the owner of the company which is local to Charleston and has serviced our area for years. She has helped me and clients of mine on numerous occasions and is a great resource for you.
Adams Insurance Company http://www.adamsinsuranceco.com/agents.html
HSA Information http://www.adamsinsurancecompanyhsa.com/
As always, please contact us with any questions or concerns that you may have. Enjoy your Holidays and a Cup of Nog!
Thank You, Rita
Rita Hammond, CPA