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Guidance On HSAs Is Issued By IRS, Treasury The Internal Revenue Service (IRS) and Treasury Department have issued a notice (No. 2004-2) explaining health savings accounts (HSAs). Any individual who has a high-deductible health plan may establish an HSA, which is completely portable, remains in the account until spent, and gains tax-free interest. Financial Needs Analysis Helps Benefits Planning Sometimes people buy life insurance before performing a financial needs analysis. They might choose an amount that seems comfortable, without actually taking into account all the potential expenses their families might face in the event of an untimely death. If they did make an objective assessment of the possible economic consequences, they would be doing what is called a financial needs analysis. States Adopt Contra-ceptive Equity Laws A total of 20 states have enacted legislation mandating contraceptive equity in health insurance coverage and that number may increase, according to the National Women's Law Center, a nonprofit organization based in Washington, D.C. Medical 401(k)s Being Studied By Deere, Fidelity Deere & Company is working with Fidelity Investments to develop a proposal for a retiree medical benefits account (RMBA) that would function like a 401(k) plan for health care. In advocating the need for RMBAs, Fidelity noted that, if a 65-year-old couple were to retire today without access to an employer-sponsored health care plan, they would need an estimated $175,000 to fund out-of-pocket medical expenses. Disability Income Insurance Requires Thoughtful Planning Have you ever asked yourself how your employees would manage if they were to suffer a severe accident or illness that left them unable to work? How would they pay their bills and cover their daily expenses? The likelihood of such an event may be greater than you think. According to the Insurance Information Institute (III, 2002), an employee between the ages of 40 and 65 has a greater chance of missing at least three months of work due to an accident or illness than of suffering an untimely death. To compound the problem, the recovery period may run as high as a lengthy two and a half years. |
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