In response to escalating growth in health care costs, more and more employers are exploring the viability of consumer-driven health plans (CDHP).  The basic difference with these plans and traditional insurance plans is these types of plans typically shift health care decision-making responsibilities to employees and encourage them to actively participate in their health care management.

A critical component to these consumer-driven health plans is the medical savings account (MSA), or healthcare savings account as it is commonly referred to. These medical savings accounts are  savings plans whereby pre-tax dollars are used for health care expenses, providing an incentive for reduced use of health care services. (more…)

Several options exist for employers to provide accounts that employees can use to pay for health care expenses not otherwise covered by a health plan; the options vary as to tax treatment, who can contribute, and what expenses can be covered.

There are three types of health spending accounts that can be used to help fund employee health care expenses: flexible spending accounts, health savings accounts (aka, health spending accounts), and health reimbursement arrangements. A description of each type of health spending accounts follow. (more…)

In the big world of investing, it seems we hear a lot about what securities to invest in, but not as much about what types of accounts to invest in. There are so many different types of investment account (retirement accounts, education, savings plans,  medical savings accounts, etc.), each covering a different purpose, and new types of accounts seem to be created weekly. What are some of the basic types of investment accounts and what can they do for you? This article covers some of the accounts that are available currently and why you would use each one.

Retirement Accounts

IRA stands for Individual Retirement Account. An IRA is meant for those who do not have access to employer sponsored retirement plans such as 401(k) plans or those who would like to contribute more than the maximum allowed by their employer plans. Why choose an IRA? Read the rest of this entry »