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Posted by parttime on December 13, 2006, 10:57 pm
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Have a small business that is a C corporation. Is there a
way for me to put put aside meny now in a tax-free or tax
deductible way to pay for my medical costs during
retirement?
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Posted by cballard@tyyni.net on December 15, 2006, 10:18 am
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parttime@mail.com wrote:
> Have a small business that is a C corporation. Is there a
> way for me to put put aside meny now in a tax-free or tax
> deductible way to pay for my medical costs during
> retirement?
One option would be to switch your health insurance to a
high deductible health plan that would make you eligible for
a Health Savings Account. You or the corporation could then
contribute more than $5,000 per year (assuming you have
family coverage and that the new tax legislation is signed
by President Bush as expected) to the account on a pre-tax
basis. The earnings in the account accumulate tax free, and
any distributions from the account for medical expenses are
tax free.
If you have other enployees, then you have potential ERISA
issues if you don't offer them the same or better options.
--Chris
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by MyVeryOwnSelf on December 15, 2006, 10:18 am
Please log in for more thread options > Have a small business that is a C corporation. Is there a
> way for me to put put aside meny now in a tax-free or tax
> deductible way to pay for my medical costs during
> retirement?
You might consider a Health Savings Account (HSA).
For the gory details, see IRS publication 969:
http://www.irs.ustreas.gov/pub/irs-pdf/p969.pdf
I have an HSA. It has been helpful, but it has its
administrative rigmarole. I use it to pay current medical
bills, though, rather than saving for retirement. For me,
it's basically equivalent to avoiding the 7.5% Schedule A
threshold for medical expenses.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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|
Posted by cballard@tyyni.net on December 15, 2006, 10:24 am
Please log in for more thread options parttime@mail.com wrote:
> Have a small business that is a C corporation. Is there a
> way for me to put put aside meny now in a tax-free or tax
> deductible way to pay for my medical costs during
> retirement?
One option would be to switch your health insurance to a
high deductible health plan that would make you eligible for
a Health Savings Account. You or the corporation could then
contribute more than $5,000 per year (assuming you have
family coverage and that the new tax legislation is signed
by President Bush as expected) to the account on a pre-tax
basis. The earnings in the account accumulate tax free, and
any distributions from the account for medical expenses are
tax free.
If you have other enployees, then you have potential ERISA
issues if you don't offer them the same or better options.
--Chris
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
|
|
Posted by MyVeryOwnSelf on December 15, 2006, 10:24 am
Please log in for more thread options > Have a small business that is a C corporation. Is there a
> way for me to put put aside meny now in a tax-free or tax
> deductible way to pay for my medical costs during
> retirement?
You might consider a Health Savings Account (HSA).
For the gory details, see IRS publication 969:
http://www.irs.ustreas.gov/pub/irs-pdf/p969.pdf
I have an HSA. It has been helpful, but it has its
administrative rigmarole. I use it to pay current medical
bills, though, rather than saving for retirement. For me,
it's basically equivalent to avoiding the 7.5% Schedule A
threshold for medical expenses.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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