Saving Money On Loan Interest

I have never been much of a spender, but when I started investing in real estate, I knew that I had found my calling. I was capable of turning a simple loan into a large return, and it was really fantastic to see my efforts pay off. Unfortunately, sometimes money was tight, and I found myself taking out loans to invest in new deals. However, I was able to learn a few tricks of the trade to save money on loan interest, such as limiting the payback timeline and perfecting my credit. This blog is all about saving you money on interest.

Is Your High-Deductible Health Plan Eligible For A Health Savings Account?


If you have a high-deductible health plan, then you may benefit by combining it with a health savings account. Not only will you be putting away money specifically for your health expenses, it also can act like a retirement account where you can take money out without penalties after age 62. However, though this sounds good, especially when you have a deductible to cover if you have an emergency, not all high-deductible health plans are eligible for this type of savings account. Here are a couple of the main eligibility rules for starting a tax-deductible health savings account.

You must have a high deductible plan:

Deductibles in health insurance refer to how much money you have to pay out of pocket before the plan begins to cover you. The minimum amount needed to be considered high-deductible changes every year and depends on whether you are single or have a family. For 2016, that amount was $1300 for a single person and $2,600 for families. In addition, the plan must also have a maximum out of pocket amount of no more than $6500 for individuals and $12,900 for families. These plans are usually best suited to people who rarely need to see a doctor, but need coverage in case of an emergency.

You can't have any cost sharing:

This requirement is often misunderstood and there are several "gray areas" about this qualification. If your plan allows you to use some services with co-payment without reaching the deductible, then that plan may be ineligible. An exception to this rule is for preventative services. This means those high-deductible health plans that cover three office visits or a visit to the emergency room with only a co-payment may not be eligible. A gray area could be that the office visits may be considered preventative, but it's actually not spelled out by the IRS. Because the rules on this are vague, many people may not realize that they are making ineligible contributions and could pay a penalty. The best thing to do is to choose a plan that specifically says it's compatible with a health savings account.

Health savings accounts are practical for people who want a tax deductible way to save money for emergencies and don't need a lot of health insurance coverage. Because it's easy to get confused as to whether or not your plan is eligible, it's best to talk to someone who is well versed on insurance plans and which ones can be combined with these types of savings account. Contact a business, such as Culbertson Financial Services, for more information.   


18 May 2016