Save $5,000 A Year On Your Taxes With A Health Reimbursement Arrangement (HRA)
As a small business owner, you may be able to deduct 100% of your family’s medical expenses, resulting in huge tax savings to you. Based on your personal situation, you may be a good candidate for an Internal Revenue Code Section 105 Health Reimbursement Arrangement (HRA) , known as BizPlanNOW. By enrolling in this tax-advantaged benefit program you can deduct 100% of your family’s medical expenses as business expenses. The average yearly tax savings of a BizPlanNOW Client is more than $5,000 each year.
What Is A Health Reimbursement Arrangement (HRA)
Health Reimbursement Accounts or Health Reimbursement Arrangements (HRAs) are IRS-sanctioned (by Internal Revenue Code Section 105) employer-funded, tax-advantaged employer health benefit plans that reimburse employees for out-of-pocket medical expenses and individual health insurance premiums. Using a Health Reimbursement Account yields “tax advantages to offset health care costs” for both employees as well as employers.
Health Reimbursement Accounts are funded solely by the employer, and cannot be funded through employee salary deductions.
HRAs reimburse only those items (co-pays, coinsurance, deductibles, and services) agreed to by the employer which are not covered by the employer’s selected standard insurance plan (any health insurance plan). These arrangements are described in IRC Section 105.
Deduct 100% Of Your Health Costs As A Business Expense
If you qualify, BizPlanNOW (a Health Reimbursement Arrangement Plan) will allow you, as a self-employed business owner, to deduct 100% of your health costs as a business expense. This could include your insurance premiums for health, long-term care, vision, and dental – in fact, your entire out-of-pocket health expense.
Typically, a self-employed business owner is not allowed to deduct personal health insurance as a business expense. The ability to take these expenses as a business deduction, offers savings on self-employment tax in addition to income tax. Other business entity types (S-Corporation, Corporation, etc.) may also be eligible for this program if set-up properly. So this program is definitely worth investigating.
Advantages of a Health Reimbursement Arrangement (HRA) for employers include:
- Reimbursements of qualified claims are tax-deductible for the employer.
- Employers know their maximum expense related to their health care benefit.
Advantages of HRAs for employees include:
- Contributions that employers make can be excluded from employees’ gross income (contributions must be made by the employer, not come from payroll reductions).
- Reimbursements may be tax free if the employee pays qualified medical expenses.
- Unused funds in the HRA can be rolled into future years for reimbursement.
- HRAs may be offered in conjunction with other employer-provided health benefits, such as flexible savings accounts (FSAs).
- Employees can be reimbursed for a health care plan that meets their or their families’ specific needs, as opposed to a standard company plan.
TASC makes sure that your Plan meets the documentation and compliance requirements established by the Patient Protection and Affordable Care Act (PPACA), the Internal Revenue Service (IRS), the Department of Labor (DOL), and the Employee Retirement Income Security Act (ERISA). TASC keeps your plan updated and within the guidelines of changing regulations.
I am working with Todd Kuehn, our representative from Total Administrative Services Corporation (TASC) to provide you with the opportunity to learn more about this valuable service, and to sign up for a Health Reimbursement Arrangement Plan if you qualify. TASC has been administering Section 105 plans for over 25 years and has a great deal of experience with business owners just like you.
AgriPlanNOW and BizPlanNOW enable qualified small business owners to deduct 100% of federal, state, and FICA taxes for family medical costs, and on average save $5,000 or more a year! Key to these savings is the ability to declare medical expenses as a business expense rather than a personal deduction. Click image to learn more and then click on link for “Get a FREE Tax Savings Analysis”.
Sign up for a BizPlanNOW section 105 plan today! and fill in the contact information. Todd or one of his team will help you calculate your potential tax savings from implementing BizPlanNOW, and you can make an informed decision about whether or not this program is for you.