Homeopathic Heal Information - News about alternative medicine

Year-end Health Savings Account Tax Strategies

2007 is just around the corner, and there are several issues to consider if you currently have an Health Savings Account (HSA), or are planning on getting one in the near future.

100% of the deposit you place in your HSA is deductible on your federal income taxes. All but four states also make HSA contributions tax-deductible on state income taxes. If you are looking to reduce your 2006 tax burden and put away more money for retirement, your HSA is the first place you should put your money if you have not yet maximized your contribution.

The maximum you can contribute to your HSA in 2006 is the lesser amount of your deductible, or $2,700 for singles and $5,450 for families. Individuals who are 55 or older may contribute an additional $700. Note that contribution limits are pro-rated, based on the number of complete months during the year in which you have a qualifying HSA health insurance plan.

You have until April 15 (or later if you file for an extension) to make your 2006 contribution. If you do not fully fund your account for the current year, you cannot make a catch-up contribution for 2006 after this deadline. However, you can reimburse yourself in later years for qualified expenses incurred in 2006, even if you do not have the funds in your account to reimburse yourself at this time.

In 2007, the maximum annual HSA contribution will go up to $2,850 for individuals and $5,650 for families. Individuals 55 or older will be allowed to contribute an additional $800.

To maximize your tax benefit for 2007, it is important to have your HSA-qualified health coverage in place no later than January 1.

In order to pay for a medical expense from your HSA, it must be a qualified expense. Some of these qualified expenses include dental expenses, eyeglasses, chiropractic visits, over-the-counter medications, and sometimes even nutritional supplements.

Now is a good time to make sure you have an accurate record of your medical expenses for the year. Make sure you separate the expenses for which you have reimbursed yourself from your HSA from those that you paid for out-of-pocket. You'll want to keep receipts for all medical expenditures paid from your HSA with your 2006 tax records. Place the "non-reimbursed medical expenses" in a separate file, keeping them with the concurrent year's tax records in whatever year you decide to reimburse yourself.

The penalty for over-funding your HSA is a whopping 6%. You have until April 15, 2007 to withdraw excess funds for the 2006 tax year to avoid the penalty. Your HSA administrator may notify you of any over-funding, but they are under no obligation to do so. It is your responsibility, so make sure you check into this if you think your may have over-funded you account.

The minimum deductible for HSA-compatible health insurance plans in 2006 was $1,050 for individuals and $2,100 for families. In 2007 this will increase to $1,100 for individuals and $2,200 for families. If you currently have an HSA-qualified plan with the lowest eligible 2006 deductible, that deductible will automatically go up on January 1 to the new minimum.

Strategies to Maximize Your Tax Benefits

There are basically three different strategies you can take when deciding how to fund your health savings account.

1. Put no money in the account, except when you incur a medical expense. This strategy allows you to legally "launder" any money used to pay medical expenses. In other words, by depositing money into your HSA, then immediately withdrawing it to reimburse yourself for medical expenses, you are making your medical expenses all tax-deductible. You may want to use this strategy if you are on a tight budget and want to keep your cash outlay as low as possible.

2. Fully fund the account, or at least put in as much as possible based on your budget. Take money out of the account any time medical expenses are incurred, and let the rest grow tax-deferred. This strategy will maximize your tax deduction, while making your HSA funds available to pay any non-covered medical expenses before your deductible is met.

3. Fully fund the account, but pay all medical expenses from a non-HSA account. Reimburse yourself for medical expenses at a later date. This strategy will allow you to maximize your tax deduction, and will also allow you to maximize the tax-deferred growth of your HSA. You can then reimburse yourself, tax-free, at any time in the future for medical expenses incurred over the ensuing years.

To maximize the potential growth of your funds, you may want to make your 2007 deposits as early in the year as possible. Any growth in your account is tax-deferred, like an IRA. If possible, you should plan to make your deposit the first week in January.

Wiley Long - President, HSA for America (http://www.health--savings--accounts.com) - Specializing in Health Savings Plans that works with a Health Savings Account. Please link to this site.

Bach Flower Therapy
About this therapy
Bach Flower Essences Shop (German)
Bach Flower Essences Shop (UK)
Where to buy Original Bach Flower Remedies
Doc Nature - Bach Flower Remedies Advisor
How to use Bach Flowers
About Bach Flower Remedies & Essences
Dr Bach
Read more about the life of Dr Bach

MORE ARTICLES:

The Center for Healing Arts Launches Exciting New Holistic Health & Alternative Medicine DVD Series
Imagine having an experienced and trusted Master or Alternative Healer accept a personal invitation to visit your home. Imagine sitting with them as you learn the secrets of healing they've learned through years of study and practice. They confide in you, sharing the mindfulness and spirituality they bring to their healing work.

Targeting Your Health Through Natural Health Remedies
I am sure that you have heard the saying, ?Your health is all you have?. Well, it?s true. Without your health, you couldn?t do the things you normally like to do. Without your health, your days seem numbered, not unlimited. It is important to take care of your health in any way you can. Optimizing your health should be a main concern of yours. But, there are ways to doing this that are not so bad.

Ancient Essence's Frankincense and Myrrh Products Bring Early Healing Remedies to Modern World
In ancient times, frankincense and myrrh were common healing properties for a variety of ailments. Ancient Essence offers products derived from these resins, bringing time-tested benefits to 21st-century consumers, including an Ancient Essence customer who says a product from the company heals his pre-cancerous skin lesions.

Common Uses For Bach Flower Essences
For thousands of years, our ancestors used natural remedies to help individuals with physical or mental health problems These formulas were passed from generation to generation for centuries until modern medicine came into being

Herbal Remedies, Natural Remedies
Finding your urinary tract infection cure can be a long process because you might have to try many different treatments. Several simple UTI treatments are readily available in present days. Individuals may use antibiotics, which have to be taken internally, as it cures the infection of urinary tract quickly. However, if infection is of severe type, then it may take a bit time to cure.

Effective And Original All Natural Acne Medicine Remedies
In pursuance for more than beautiful skin both gentlemen and women have a number of choices. At this time there are so many solutions along the shelves that you could take your time standing in a store meditating on them. Many discreet individuals Do not have that kind of time, Therefore we have to guess and even trust on what the ads tell us. Unfortunately advertisements are contrived to get you to purchase and its not unequaled for the accuracy to be debased a bit or even to be entirely overlooked. When you wish to find all natural acne care , situations can get slippery.

Genital Warts Natural and Alternative Treatment Remedies
Have you been diagnosed with genital warts caused by the HPV virus? If so, your physician has probably advised you of the more conventional treatments available such as pharmaceutical ointments, cryosurgery (freezing), electrocautery (burning) or laser treatment. While many people undergo these types of treatments, some opt for a less invasive natural solution by visiting a Naturopathic doctor.

New Holistic Acne Healing Remedies
Exfoliation is absolutely vital to maintaining a clear, healthy and glowing skin The only snag though, is that as we gradually age, the exfoliation process tends to dramatically slow down

Remedy For Heartburn- Try Natural Remedy
Everyone loves to eat fatty foods or fast food but the side effects that it has makes most of people uncomfortable. When you eat too much of fatty foods it affects your digestive system. They kill your appetite and most of the time cause heartburn problem that can be subsided only when you change your eating habits. Remedy for heartburn is also of different types and can be natural or by medicines prescribed by doctors. You can take antacids that are available in the market, which will instantly relieve you from that problem. As there are lot of causes behind heartburn, the remedy for heartburn is also enormous. If you experience heartburn problem more than two to three times in a week, you should consult a doctor.

Natural Sleep Aid Tips and Remedies
This article is a summary of some of the sleep aid remedies that are described in greater detail and with recipes and instructions at www.sleep-aid-tips.

An Introduction to Bach Flower Essences Part II – The Seven Helpers
The 12-7-19 Method of Bach Flower ClassificationDr. Edward Bach, developer of flower essence therapy, classified the original 38 essences he used in his practice according to the 12-7-19 method: the Twelve Healers, the Seven Helpers, and the Second Nineteen.

Natural Health Remedies and Your Health
Health remedies are among the most important things you can utilize to gain full control of your health. Those that are natural are even better for you then others.

ALTERNATIVE Health & Herbs REMEDIES a Non-Profit Christian Ministry, Alternative Natural Remedy Products have been Selected for Distribution by Amazon
Nutritional Products International, DelRay Beach, FL, is pleased to announce the addition of ALTERNATIVE Health & Herbs REMEDIES in Albany, Oregon, an herbal manufacturer to Amazon.com. An amazingly large selection Alternative Health and Natural Remedy products. Over 4,000 time proven natural remedies of tincture/extracts, teas, powders, salves, creams, lotions, capsules and tablets and more for Amazon.com customers.

Bach Flower Remedies
Bach Flower remedies are 38 plant and flower based remedies which where created during the 1930s by Dr. Edward Bach.