Troy, MI (PressExposure) May 20, 2009 -- The availability of health care coverage provided by employers is diminishing as the cost of health care is increasing. As people reach retirement age, they realize that they may not have enough saved for medical expenses. Using their IRA funds would result in tax penalties.
Michael McGee, financial advisor specializing in retirement planning, recently attended a meeting with other people in the finance industry. He explained how he advises his clients that they can use their IRA, tax-free, to help with medical expenses. âThe solution is to do a one-time rollover, from your IRA to a Health Savings Account. To qualify, you must currently have a high-deductible health plan, where you are responsible for paying the first $1,150 for an individual plan or $2,300 for a family plan of your medical expenses. The higher deductible means lower premiums.â
Michael explained the rules and the benefits of having a health savings account. âYou may move up to $3,000 to a health savings account for individual coverage or up to $5,950 for family coverage. Those who are 55 or over can contribute an extra $1,000. The benefit of having the account is being able to use the money without being forced to pay income taxes on the distribution.â
Michael reminded the group, âThe IRA to HSA rollover is a once-in-a-lifetime option, so itâs a good idea to transfer the maximum allowed to establish the account. Anyone under the age of 65 who has a qualified high-deductible policy can open an HSA.â
Michael McGee is a financial planner specializing in retirement and health care planning for people of all ages and income levels. Health care costs are constantly increasing while fewer employers are offering pension plans and health care benefits. Michael can help you establish a health care plan to cover routine medical procedures and long-term health care for the future. Learn more at http://retirementplanningoaklandcounty.blogspot.com/
Contact: Michael S. McGee, MBA Financial Advisor 888 West Big Beaver Suite 850 Troy, MI 48084 248-720-0300 Email: firstname.lastname@example.org
This press release was submitted by Right Now Marketing Group, LLC