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The Alpha Group
New Year Financial Update
January 2012 |
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The Alpha Group Agency
4200 Rockside Road, Suite 300
Independence, Ohio 44131
216-520-3300 |
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2012 HSA Limits Reminder
The 2012 HSA Limit refers to the Annual Contribution Limit for Health Savings Accounts (HSA) which is set every year by the IRS. The Internal Revenue Service announced at the end of last year, the 2012 HSA Limits for annual contributions made to a health savings account (HSA).
Annual HSA Contributions are tax deductible and can be made either by an individual or by that individual's employer. Distributions for qualified medical expenses are not included in individual taxable income, and the earnings of HSA funds are not taxed.
Remember that starting in 2012, some of the limits on HSAs are changing. The limit for contributions for account holders with self-only coverage will go from $3,050 to $3,100-up $50. The limit for family coverage will go from $6,150 to $6,250-a $100 increase.
Minimum annual deductibles remain the same for 2012 at $1,200 for self-only coverage and $2,400 for family coverage. Maximum out-of-pocket expenses go up to $6,050 for self-only coverage and $12,100 for family coverage, up from $5,950 and $11,900 for 2011 respectively.
Download 2012 HSA Limits |
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Eligibility Requirements
As a refresher, please remember that you must meet certain requirements in order to quailfy for and contribute to a Health Savings Account. To be an eligible individual and qualify for an HSA, you must meet the following requirements.
- You must be covered under a high deductible health plan (HDHP), on the first day of the month.
- You have no other health coverage except what is permitted under Other Health Coverage, according to IRS Publication 969.
- You are not enrolled in Medicare.
- You cannot be claimed as a dependent on someone else's tax return.
If you do not meet any one of the aforementioned requirements, you may not be eligible to contribute to an HSA account. Please review these requirements and be sure that you are in compliance with IRS regulations |
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Hall v. Sebelius
The impact of a recent ruling on
Medicare Part A
 In a recent court decision contesting two policies adopted by the Social Security Administration and the Department of Health and Human Services, Judge Rosemary Collyer has thrown the case out ruling that it is "without merit.". In short, Judge Collyer concluded that participation in Medicare Part A is "statutorily mandated" for those who reach 65 years of age and are receiving Social Security benefits. This ruling has a significant impact on retirees, over the age of 65, that are currently utilizing the benefits of a Health Savings accounts. Under this ruling, if an individual is currently receiving Social Security benefits, it would disqualify them from enrolling and contributing into an HSA account. It is the HSA account holders sole responsibility to ensure that funds are used for qualifying medical expenses. It is also the account holders responsibility to determine the tax consequences of any distributions, for maintaining adequate records for tax purposes, and for paying any taxes and penalties arising as a result of any such distribution. If improper contributions are made to an HSA account, the funds will be subject to ordinary income and excise tax. Retirees who are receiving Social Security benefits must be aware of this ruling and consider the compliance issues involved with making contribution to their HSA accounts. Read the entire case |
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2012 Cost-of-Living Adjustments
The Internal Revenue Service has announced the 2012 cost-of-living adjustments (COLAS) to the various dollar limitations of benefits and contributions under qualified retirement plans.
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Alpha Benefits, Inc. / Alpha Financial Services, Inc. / Alpha Property & Casualty, Inc. / AlphaHR, LLC.
Your partner for stability, security & growth. |
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