A Health Savings Account Plan Allows Payment Of Dental Expenses With Tax-free Dollars

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A health savings account plan is a combination of a high deductible health insurance policy and a tax-sheltered savings account that is similar to an IRA. All contributions to the savings account are 100% tax deductible, subject to annual maximums established by the IRS.

Money that is properly contributed to the account is tax-free. That is, income tax is not paid on dollars that are deducted from gross income.

One of the advantages of a health savings account plan is that money can be withdrawn from the savings account on a tax-free basis to pay for a variety of health related expenses.

Most dental expenses are included in the IRS list of approved expenses that one can use tax-free dollars from a health savings account to pay for. Examples of allowable dental expenses include exams, x-rays, fillings, extractions, bridges, crowns, and even orthodontics and dentures.

Not all dental expenses are allowed, however. For example, teeth whitening is not an allowable expense under IRS regulations. The rationale appears to be that teeth whitening is a purely cosmetic procedure.

It is not necessary to have a dental insurance plan in order to use HSA funds. It is required, however, to have a health insurance policy in place that qualifies as an HSA eligible policy. Basically, an HSA eligible policy is one with a high deductible that does not have co-pays for routine medical bills or prescriptions. A dental policy can be purchased separately to operate in conjunction with the high deductible health plan to provide a combination of major medical and dental insurance.

If an individual does have a dental insurance policy, she can use tax-free dollars from her HSA account to pay for deductibles or co-pays under the dental insurance policy. And of course, she can also use tax-free dollars to pay for expenses not covered under her dental policy.

About the Author:
The first step in establishing a health savings account plan is to become insured under a qualifying high deductible health plan. Be sure to utilize the services of an experienced agent or broker to help you select the right insurance plan for you. Once high deductible health plans are in place, health savings accounts can be established with many administrators nationwide.



Article Originally Published On: http://www.articlesnatch.com


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