There is an enormous amount of information about HDHP's
(High Deductible Health Plans) and HSA's on the HSAInsider
website. There are about 200 questions answered in the Q&A
area of the website. You can look up qualifying plans on the
ehealthinsurance website.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Andy replies:

It has nothing to do with "earned income". Only gross
income.

The amounts allowed are based on the characteristics of your
Insurance Plan.

Guidelines for the HSA are available on the Social Security
website.

One caveat: One characteristic that is not well publicized
is the way the insurance plan deals with prescription drugs.

My plan pays for prescription drugs WITHOUT being subject to
a deductible. Therefore my plan does NOT qualify me to open
an HSA.

After you make all the calculations yourself, and check
everything out, THEN call your insurance company
representative and ask them if the plan you have qualifies
you to get an HSA. This final check saved me from making a
big mistake.

Andy

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I've been reading about the new Health Savings Accounts
online a various sites that are promoting qualified
insurance policies and/or HSA trustee services. I've seen
seveal comments at these sites along the lines of:

"Tax Treatment: Inviduals
Individual Contributions—Contributions are
tax deductible up to the maximum amount.
Contributions can be deducted from adjusted
Gross Income."

Since the HSA accounts seem to be treated in a very similar
manner to IRA's, am I correct in assuming that one needs
*earned income* in order to take the contribution deduction
to a HSA? Or will *any* sort of gross income (e.g.,
dividends) be sufficient to allow one to take the deduction?

TIA.

Tom Young

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->