|
FDIC Consumer News
Important Update: FDIC Insurance Coverage Increased in Late 2008
In the fall of 2008, Congress temporarily increased the basic FDIC insurance coverage limit from $100,000 to $250,000 through December 31, 2009. In addition, the FDIC simplified the rules for the calculation of deposit insurance coverage for revocable trust deposits, including an expanded definition of the "eligible beneficiaries" for additional insurance coverage. As a result, certain previously published information related to FDIC insurance may not reflect the current insurance coverage. For more information, go to www.fdic.gov/deposit/deposits/index.html or call toll-free 1-877-ASK-FDIC (1-877-275-3342) Monday through Friday, 8:00 a.m. to 8:00 p.m., Eastern Time. For the hearing-impaired, the number is 1-800-925-4618.
|
Summer 2004
New Tax-Advantaged Savings Account for Medical Costs
You should expect to hear more about a new Health Savings Account (HSA) that, for some consumers, could mean big tax breaks when used to save for certain medical costs, including doctor fees and long-term care insurance payments. But not everyone is eligible to open an HSA. Here's a quick summary.
You can set up an HSA at a bank or other U.S. financial institution that offers these accounts. According to IRS rules, your contributions are tax deductible and contributions made by your employer may be excluded from your gross income. The money can remain in the account for years and your earnings grow tax free. Also, there is no tax on the money you withdraw to pay for qualified medical expenses.
In general, to open an HSA you must be under age 65 and have a qualified health insurance plan that has a deductible (i.e., amount you pay) of at least $1,000 (or $2,000 for a family policy). Contributions to HSAs are limited to the amount of your annual deductible. For more information, read IRS Bulletin No. 2004-2 online at www.irs.gov/irb/2004-02_IRB/ar09.html, contact your local IRS office or consult your tax advisor.
How does the FDIC insure these accounts? In general, an HSA deposit account at an insured institution would be protected for up to $100,000 along with any deposits you hold in your name at the same institution but there are exceptions. To learn more, call or write the FDIC.
|