The Idaho MSA is the best healthcare news most Idahoans have heard in a long time, because it's actually something that can help you save money! This account is incredibly versatile, is available to everyone regardless of insurance coverage (or lack thereof), and literally reduces your taxable income dollar for dollar with everything you put into it.
It belongs to you, and follows you wherever your job or insurance coverage takes you. It's both a long-term and a short-term money saving machine. And working through the specialized healthcare accounts division at Idaho Independent Bank, MSAs are simple!
So no matter what your age, financial situation, health insurance coverage or medical history, almost everyone would benefit from opening an Idaho MSA because it will allow you to save money on healthcare and plan for the unexpected.
Take a look at the benefits an Idaho MSA provides:
MSAs Reduce Your Taxes
The Idaho MSA has what is called a "Triple Tax Advantage". This simply means there are three tax-related ways you'll benefit (save money) by utilizing one:
First, money is tax-free going into the account. This means every dollar you put into your MSA reduces your taxable income to the State of Idaho by the same amount that went in. Reducing your taxable income literally reduces the amount of taxes you have to pay on your income that year.
So if you put $2,000 into your MSA to pay for an upcoming surgery, or to pay your insurance premiums for the year - you just reduced your taxable income by $2,000! That could be the difference between tax brackets, and depending on your situation could either get you a bigger tax refund, or significantly reduce the amount in taxes you owe the State of Idaho!
Second, there is no “use it or lose it” with the MSA. This means the money you put into your account is yours to keep.
Whatever you don’t spend that year simply rolls over to the next year, growing your balance and increasing your “buffer” for either planned or unplanned medical expenses. It even earns tax-free interest while it sits in there!
Finally, the money you do actually spend out of your MSA on qualified medical expenses goes out of your account, tax-free. Meaning as long as you spend that money on those qualified expenses, you will never pay State income tax on those funds you earned.
It is important to note here, that if you spend MSA dollars on un-qualified medical expenses you're subject to a 10% penalty and you must pay income tax on what was spent. But there's no need to worry about that, because we've got your back! We can easily help you fix any accidental error on this or any other aspect of your MSA. Maximizing the benefits to your MSA and protecting you from problems is exactly what we're here for!
You can use your MSA money to pay for things like doctor and dental visits, contacts and eyeglasses, band aids, insurance co-pays and even your health insurance or Medicare premiums! Imagine being able to pay a fixed cost like your insurance premiums with tax-free money!
MSAs Are Portable
Another huge benefit to the MSA is that it’s so portable. Your MSA belongs solely to you (not your employer) and is totally independent of your job or your insurance policy. So if any of those things ever change, your MSA and all the money in it follows you wherever you go. You can even take it with you into your retirement years to pay Medicare premiums in addition to normal qualified expenses. There are no age restrictions, so you can contribute to your MSA regardless of how old you are. And after age 59.5, you can take the money out as taxable income with no penalty should you decide to do so.
MSAs Are Flexible
MSAs are flexible and work to fit into your situation! We already know the money you don’t spend rolls over each year, and that's certainly a great benefit! But that's more of a long-term saving strategy. What about people who aren't necessarily planning that far in advance, or people who just recently opened one up? With the MSA, you don’t need to be so far ahead of the curve and have money piled up in advance to take advantage of all benefits these accounts offer.
Let's use expected medical expenses, like insurance premiums and co-pays as an example. You know you have insurance premiums to pay, or that the upcoming doctor’s visit is going to have a co-pay. Deposit that money into your MSA first, get the tax break and pay your medical expenses from there! You can take advantage of the tax breaks by paying for all sorts of things out of the account - big or small, planned or unplanned.
Another reason the Idaho MSA is so flexible is because it has no age restrictions, so you can make tax-free contributions at any age. In your retirement years you can pay Medicare premiums out of your account in addition to the qualified expenses you could always spend your tax-free dollars on. But once you reach age 59.5, you can actually pull money out of your MSA as taxable income with no penalty, making the Idaho MSA kind of like a "medical IRA"!
Should you need to, you can even pull the money out prior to age 59.5 for an un-qualified, non-medical reason like a family emergency. You’ll just have to pay taxes on the money you withdraw in addition to a 10% penalty for doing so. Probably not the best idea, but in a pinch that's a great built-in safety feature! Ultimately your MSA money is yours; it’s never frozen or locked away and you never lose it.
So no matter what the situation may be, the Idaho MSA is flexible and will adapt to fit you and your family's needs!
MSAs Are Simple (with Idaho Independent Bank!)
Individuals, families and employers alike enjoy the MSA because with Idaho Independent Bank (IIB), it’s so simple to have one! This isn't just another bank account, or some "new insurance thing" that has all sorts of complicated rules you don't understand. Your MSA with IIB is your new best friend. We work with you to understand your situation so we can help you maximize every last benefit of the account, the way it was intended to be!
Your Idaho MSA acts as your tax shelter, your nest egg, your buffer for unexpected medical costs. The healthcare accounts division at IIB is the expert in your corner to insure your MSA operates like a well-oiled machine.
We accomplish this by being both proactive, and reactive with your MSA! We actively monitor both the State and the IRS regulations to protect your account and catch all sorts of things that can pop up and cause problems. Issues like over-contributions, or updates to tax forms or rule changes... If something trips our alarm, we'll alert you and correct the issue before it's a problem.
We also handle all the questions you may ever have on your behalf, while you simply go about your day. We'll research whatever the question is, or fix whatever the problem may be, and simply call you when it's handled. You won't ever find yourself having to research IRS regulations, or needing to call the bank and sit on hold for hours to comb through all the excruciating details relating to whatever question you may have. Call our office and tell us what you need, and it's taken care of.
MSAs Will Help You Plan
One of the biggest benefits to the MSA is that it allows you to plan for inevitable medical expenses in the future, and rewards you for doing it in the process! Whether you're old or young, sick or healthy, insured or not...you're going to have medical costs at one point or another. Some of them are fixed and expected costs, like your health insurance premiums. But others are unforeseen, and can not only blind side you with the aspect of being ill or injured, but with the high cost of the healthcare services you need to get well! This is where the MSA shines.
Everything you put into the account is tax-free, right? So for those fixed costs that you're expecting (like your premiums), put the money in first and then pay those bills with tax-free dollars! Make sure you get the State tax benefit for paying something you're going to have to pay, anyway.
And for those unexpected costs (like when you get sick or get hurt in an accident) having some money put away in your MSA as a "buffer" can make all the difference in the world. You'll be able to just focus on getting healthy, instead of worrying about how you're going to pay for these medical bills that seemed to have come out of nowhere. Especially for those of us who don't even have insurance coverage right now. This is a safe and easy way to put aside what money you can afford, so when the time comes you're prepared.
The MSA will also help you plan for retirement! We already know the money you deposit in your MSA is tax-free, it earns tax-free interest while it sits, and it's spent out of the MSA tax-free on qualified expenses. But what about pulling the money out for other uses? Once you reach age 59.5, you can pull the money out for whatever you like! You'll have to include it as taxable income that year, but there is no 10% penalty (or any penalty) for doing so. This feature makes the Idaho MSA a great retirement vehicle, and has people referring to it as a sort of "medical IRA".
MSAs Will Save You Money
Whether you’re an individual, a family or an employer group, almost everyone will benefit from opening a medical savings account through Idaho Independent Bank. The State tax shelter these accounts provide both the individual and the married joint filing families is almost unbelievable (at $10,000 and $20,000). In addition, the account isn't just a one-way street. You're allowed to actually spend that tax-free money on all sorts of qualified MSA expenses, and never pay back a dime of the income taxes you wrote off by placing it in the account.
You can spend the money on more traditional items like doctor's visits, blood tests, X-rays and hospital bills. But what if you're healthy? Think about the possibility of paying those monthly insurance premiums with tax-free dollars, or those office co-pays you know you have coming when you see your doctor. There are so many ways to reduce you and your family's healthcare budget with the Idaho MSA it is remarkable.
It really is a breath of fresh air in an industry that has done nothing but increase cost to the people stuck needing their services for years.