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HEALTH SAVINGS ACCOUNTS (HSA)
COMBINED WITH QUALIFIED HIGH DEDUCTIBLE
HEALTH INSURANCE IS NOW OFFERED TO:
REALTORS
BY
INS/MARK OF AMERICA
HOUSTON, TX
**************************************
On-line quotes available at
www.theREALbenefits.com
Or
Toll Free 800 847-7503
In Houston, Texas area 281 293-8292
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WHAT IS AN HSA?
A HEALTH SAVINGS ACCOUNT (HSA) is a special Tax Sheltered Savings Account that
is similar to the traditional IRA , but is for qualified medical expense only. HSA was
signed into law on December 8, 2003 as a part of the Medicare Reform Bill and became
available to consumers in 2004.
WHAT IS A HDHP?
A HDHP is a required special High Deductible Health Insurance Policy that provides
comprehensive health insurance coverage at a LOWER COST than Traditional Health
Insurance. (See deductibles, benefits and guaranteed out of pocket amount in HOW TO
APPLY FOR COMBINED COVERAGE ).
WHAT ARE THE ADVANTAGES OF A COMBINED PROGRAM?
1. Money deposited into an HSA is 100% deductible up to the maximum allowed for
Individuals ($2,900 for year 2008) or the selected deductible, whichever is less. The
maximum allowed for Families is ($5,800 for year 2008) or the selected deductible,
whichever is less. In addition to the maximum contribution amount, catch-up
contributions can be made of $ 900 in 2008 and $ 1,000 in 2009 and later years
by those at least age 55 or older but younger than 65 and becomes enrolled in
Medicare benefits.
2. Money deposited in an HSA can be used to pay for qualified medical expenses not
covered under the insurance policy. (Examples of Qualified Medical Expenses are
included on a separate sheet.
3. Participation in an HSA by an Individual or a Family requires coverage of a HIGH-
DEDUCTIBLE HEALTH PLAN (HDHP). The HDHP described in HOW TO APPLY
FOR COMBINED COVERAGE has been specially designed for this purpose.
Premiums paid for the HDHP is generally 100% deductible for self employed
and/or independent contractors in 2008. This deduction is in addition to the
deduction allowed by the HSA thus allowing even more savings.
HOW TO APPLY FOR COMBINED COVERAGE?
STEP 1: Request a proposal at www.theREALbenefits.com or by calling our toll free 1-
800-847-7503 number. If you are in the Houston, Texas area, please call 281-293-8292.
STEP 2: Design your own HDHP by selecting the following deductible which is also the
guaranteed OOP (Out-Of-Pocket) amount and is also shown on the requested proposal.
DEDUCTIBLES:
INDIVIDUAL: $ 2,900
FAMILY:
$ 5,800
BENEFITS
RATE OF PAYMENT: 100% after deductible is reached
GUARANTEED Out-Of-Pocket: Selected deductible Amount
MAXIMUM LIFETIME BENEFIT: $5 Million
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STEP 3: Open an HSA ACCOUNT with JP MORGAN CHASE BANK, N.A. (CHASE)
which offers:
æ Complete control of account by owner
æ Minimum opening requirement is $ 50.00
æ Low Monthly Administration fee.
æ Convenience of Debit Card or Checks for Easy Withdrawals
æ Complete and sign the enclosed HSA enrollment package. This package must
accompany the application for a QUALIFIED HIGH DEDUCTIBLE HEALTH
PLAN (HDHP).
WHAT TO DO NEXT?
Proposals with premium rates for the HDHP can be requested:
Online: at www.theREALbenefits.com or you may contact Ins/Mark toll free at 800 847-
7503.
Email: to bill@ins-mark.com can also be used to request a time for a telephone call.
CONVENIENT WORKSHEET ON NEXT PAGE
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HEALTH SAVINGS ACCOUNT (HSA) AND HIGH
DEDUCTIBLE HEALTH POLICY (HDHP)
WORK SHEET
HDHP
1. HDHP DEDUCTION SELECTED FROM THE ATTACHED PROPOSAL: $
2. MONTHLY HDHP PREMIUM RATE FOR SELECTED DEDUCTION: $
3. FOR ANNUAL PREMIUM MULTIPLY MONTHLY RATE X 12 MONTHS: $
(As a HDHP participant you are generally entitled to a 100%
deduction for health insurance premiums paid IN 2008.
4. For tax savings on your HDHP premium rates use estimated tax rate of
% times annual premiums paid (see attached IRS TAX RATE
SCHEDULE on Page 6 for your estimate).
5. YOUR ESTIMATED HDHP TAX SAVINGS FOR 2008 IS:
$ *
HSA
6. HSA MAXIMUM DEPOSITS OR DEDUCTIBLE SELECTED:
$
7. (As a HDHP participant you are entitled to deduct a maximum amount
of $ or the selected proposal deductible (whichever is less)
in 2008. To estimate tax savings on HSA deposits use estimated tax rate of ______ %
times the total deposits in 2008.
8. YOUR ESTIMATED HSA TAX SAVINGS FOR 2008 IS:
$ **
COMBINED HSA & HDHP RECAP
9. Tax savings in 2008 for HDHP premiums: $ *
10. Tax savings in 2008 for HSA deposits: $ **
11. TOTAL TAX SAVINGS WITH THE COMBINED HDHP & HSA:
$
12. MINUS PREMIUM PAID FOR HDHP FOR 2008:
$
13. EQUALS ANNUAL NET COST FOR COMBINED PROGRAM IN 2008: $
14. FOR MONTHLY NET COST OF HEALTH INSURANCE
DIVIDE ANNUAL NET COST BY 12 MONTHS
$
Disclaimer: The information contained herein is provided for informational purposes only. Ins/Mark of
America, Inc. shall not be responsible for any decisions, damages or other losses resulting from, or related
to this information. Please consult your tax adviser.
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ADDITIONAL BENEFITS OF THE HEALTH SAVINGS
ACCOUNT
The HSA is in the name/names of the policy owners and can be accessed only by the account
owners. Withdrawals for any qualified medical expense shown on the accompanying Medical
Expenses-Qualified & Non-Qualified form may be made without penalty. Amounts withdrawn
each year will decrease the amount carried forward to the next years beginning balance. You will
be eligible to deposit the maximum amount each year until the owner reaches age 65 and
enrolled in Medicare. At that time distributions may be withdrawn without penalty.
INSTRUCTIONS FOR APPLYING FOR HDDP and
HSA
1. REQUEST A PROPOSAL WITH PREMIUM RATES AND AN ENROLLMENT
MATERIALS FROM INS/MARK ONLINE AT
www.theREALbenefits.com or
you may call toll free 1-800-847-7503. IN THE HOUSTON, TEXAS AREA please
call 281-293-8292.
2. COMPLETE AND SUBMIT AN APPLICATION TO INS/MARK OF AMERICAN for
the QUALIFIED HDHP. (The first month's premium shown on the QUOTE must
be submitted with a paper application along with the one-time application fee of
$20.00.) (If the application is submitted online then the one-time fee is waived
and the first months premium can be collected by electronic funds transfer or
from Visa or Mastercharge. )
3. COMPLETE THE DEPOSITORY FORM FROM JP MORGAN CHASE BANK for
your HSA account. Include a "VOIDED" check or deposit slip to be used to open
the HSA account when the HDHP is approved. A $50 minimum deposit will be
drawn on the bank account shown on the "VOIDED" check or deposit slip. DO
NOT SEND ANY MONEY WITH THE DEPOSITORY FORM! Upon policy approval
CHASE BANK WILL CONTACT THE DEPOSITOR FOR INSTRUCTION ON HOW
TO FUND THE ACCOUNT.
4. Send all completed forms and materials to:
INS/MARK OF AMERICA
P.O. BOX 940520
HOUSTON, TX 77094
www.theREALbenefits.com
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2008 Tax Rate Schedules
Note: These tax rate schedules are provided so that you can compute your estimated tax for 2008. To compute your actual income
tax, please see the instructions for 2008 Form 1040, 1040A, or 1040EZ as appropriate when they are available.
Schedule X — Single
If taxable income is over-- But not over--
The tax is:
$0
$8,025
10% of the amount over $0
$8,025
$32,550
$755 plus 15% of the amount over 7,550
$32,550
$78,550
$4,220.00 plus 25% of the amount over 30,650
$78,550
$164,550
$15,107.50 plus 28% of the amount over 74,200
$164,550
$357,700
$37,675.50 plus 33% of the amount over 154,800
$357,700
no limit $97,653.00 plus 35% of the amount over 336,550
Schedule Y-1 — Married Filing Jointly or Qualifying Widow(er)
If taxable income is over-- But not over--
The tax is:
$0
$16,050
10% of the amount over $0
$16,050
$65,100
$1,510 plus 15% of the amount over 15,100
$65,100
$131,450
$8,440.00 plus 25% of the amount over 61,300
$131,450
$200,300
$24,040.00 plus 28% of the amount over 123,700
$200,300
$357,700
$42,170.00 plus 33% of the amount over 188,450
$357,700
no limit $91,043.00 plus 35% of the amount over 336,550
Schedule Y-2 — Married Filing Separately
If taxable income is over-- But not over--
The tax is:
$0
$8,025
10% of the amount over $0
$8,025
$32,550
$755 plus 15% of the amount over 7,550
$32,550
$65,725
$4,220 plus 25% of the amount over 30,650
$65,725
$100,150
$12,020.00plus 28% of the amount over 61,850
$100,150
$178,850
$21,085 plus 33% of the amount over 94,225
$178,850
no limit $45,521.50 plus 35% of the amount over 168,275
Schedule Z — Head of Household
If taxable income is over-- But not over--
The tax is:
$0
$11,450
10% of the amount over $0
$11,450
$43,650
$1,075 plus 15% of the amount over 10,750
$43,650
$112,650
$5,620.00 plus 25% of the amount over 41,050
$112,650
$182,400
$21,857.50plus 28% of the amount over 106,000
$182,400
$357,700
$40,239.50 plus 33% of the amount over 171,650
$357,700
no limit
$94,656.50plus 35% of the amount over 336,550
www.theREALbenefits.com
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Medical Expenses- Qualified & Non-Qualified
Health Savings Accounts are health care financing programs that enable insureds to be reimbursed for
qualified medical care expenses. Qualified expenses are defined under Section 213(d) of the IRS Code.
Medical care expense is defined as amounts paid for the diagnosis, cure, treatment or prevention of disease,
and for treatments affecting any part or function of the body. Medical care expenses must be primarily to
alleviate or prevent a physical or mental defect or illness.
Below are examples of both qualified and non-qualified medical expenses. For additional information, refer to
IRS Publication 502 titled "Medical and Dental Expenses", Catalog Number 15002Q. The publication is
available at the IRS website, www.irs.gov, or by calling 800-TAX-FORM.
Examples of Qualified Medical Expenses
•
Acupuncture
•
Guide dog or assistance animal
•
Oxygen and oxygen equipment
•
Alcoholism
•
Hearing aids and batteries
•
Physician services
•
Ambulance
•
Home care
•
Podiatrist
•
Artificial limbs or prostheses
•
Home improvements to accommodate a • Prescription drugs
•
Artificial teeth
disabled person
•
Psychiatric care
•
Bandages
•
Hospital services
•
Psychoanalysis
•
Birth control pills (by prescription) • Laboratory fees
•
Psychologist
•
Braces
•
Lead-based paint removal
•
Special home for the mentally retarded
•
Braille books and magazines
•
Legal abortion
•
Special school costs for the handicapped
•
Breast reconstruction surgery
•
Lodging (away from home for
•
Sterilization
•
Car-special hand controls or equipment prescribed outpatient care)
•
Surgery
to accommodate a disabled person
•
Long-term care premiums
•
Stop-smoking programs (physician
•
Chiropractor
(certain limits apply)
prescribed)
•
Christian Science practitioner
•
Long-term care services
•
Telephone or TV equipment to assist
•
Contact lenses and cleaning solutions • Nonprescription drugs
the hearing impaired
•
Crutches
•
Nursing home
•
Therapy
•
Dental treatment
•
Nursing services (including board and • Transportation (primarily for and
•
Dentures
meals)
essential to medical care)
•
Dermatologist
•
Ophthalmologist
•
Vasectomy
•
Diagnostic devices (blood sugar test kit) • Optician
•
Weight loss programs to treat an
•
Drug addiction treatment
•
Optometrist existing disease
•
Eyeglasses
•
Organ transplant (including donor's • Wheelchair
•
Eye surgery (laser or radial keratotomy) expenses)
•
X-rays
•
Fertility enhancement
•
Osteopath
Examples of Non-Qualified Medical Expenses
•
Baby-sitting and childcare for a
•
Electrolysis or hair removal
•
Nutritional supplements
normal, healthy baby
•
Funeral, cremation or burial expenses
•
Premiums for life insurance, income
•
Controlled substances
•
Future medical care
protection, disability, loss of limbs,
•
Cosmetic surgery and procedures
•
Hair transplant
sight or similar benefits
(unless for deformity)
•
Health club dues
•
Swimming lessons
•
Cosmetics, hygiene products and
•
Health coverage tax credit
•
Teeth whitening
similar items
•
Illegal operations and treatments
•
Veterinary fees
•
Dancing lessons
•
Insurance premiums
•
Weight-loss program
•
Diaper service
•
Maternity clothes
•
Domestic help
•
Nonprescription drugs and medicines