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| Introduction |
Health Savings Accounts are great news for Americans! |
The U.S. Congress recently passed legislation which makes paying for medical expenses much
more affordable for consumers. As of January 1, 2004, the new law provides broad access to
Health Savings Accounts, which allow consumers to pay for
qualified medical expenses with pre-tax dollars (income-tax free!) and save for
retirement on a tax-deferred basis. |
| That is: to link the new HSAs (Health Savings Accounts) to Long Term Care, so
the build-up in these tax-deferred savings could be used tax-free to pay for Long Term
Care insurance premiums one day in the future. The
subscriber to the HSA may remain healthy and not use the investment build-up (ie.
$2,400/yr deposited and compounding at 8-10%/yr.) to pay for out-of-pocket medical
expenses (including the deductible). In this case, when that subscriber turns 58 to
65 years of age, he/she can draw down on this accumulated savings tax-free and pay for
Long Term Care insurance premiums
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