D
D. Stussy
I just want to make certain that I'm reading the rules
correctly. None of my clients nor I currently have an MSA
(formerly called an Archer-MSA).
1) There seems to be an UPPER limit on how high the "high
deductible" plan can set its deductible. The IRS
Publication seemed to say that for a "self-only" plan, the
"high deductible" cannot exceed $2,500. Therefore, someone
who has a self-only, $5k/yr deductible does not qualify to
contribute; correct?
2) Exactly what does it mean for a self-employed person to
have "established his plan under his business?" Does that
mean that it must be in the name of the business, not the
name of the sole-proprietor, and automatically cease if the
business terminates? The IRS publication didn't define
this. The plans that I see in my area (my own included) are
established in the person's own name and would continue [as
long as premiums are paid] even if the person were to become
unemployed (or change to a different SE business activity).
3) Unlike other tax-deferred plans, it looks as if there is
no way to make a "non-deductible" contribution to an MSA;
correct?
In this election year, it seems very obnoxious for the
Government to have such restrictions. Both candidates for
president, and here in CA, the senator up for re-election,
are talking about expanding health care.... I just want to
make certain that my understanding of this is correct before
I write a letter to my "congresscritter" bitching about
these restrictions and to ask that they be changed.
correctly. None of my clients nor I currently have an MSA
(formerly called an Archer-MSA).
1) There seems to be an UPPER limit on how high the "high
deductible" plan can set its deductible. The IRS
Publication seemed to say that for a "self-only" plan, the
"high deductible" cannot exceed $2,500. Therefore, someone
who has a self-only, $5k/yr deductible does not qualify to
contribute; correct?
2) Exactly what does it mean for a self-employed person to
have "established his plan under his business?" Does that
mean that it must be in the name of the business, not the
name of the sole-proprietor, and automatically cease if the
business terminates? The IRS publication didn't define
this. The plans that I see in my area (my own included) are
established in the person's own name and would continue [as
long as premiums are paid] even if the person were to become
unemployed (or change to a different SE business activity).
3) Unlike other tax-deferred plans, it looks as if there is
no way to make a "non-deductible" contribution to an MSA;
correct?
In this election year, it seems very obnoxious for the
Government to have such restrictions. Both candidates for
president, and here in CA, the senator up for re-election,
are talking about expanding health care.... I just want to
make certain that my understanding of this is correct before
I write a letter to my "congresscritter" bitching about
these restrictions and to ask that they be changed.