What are Pre-Tax Medical Premiums?
A pre-tax medical premium is deducted from the employee’s pay before any income taxes or payroll taxes are withheld and then paid to the insurance company. This can deliver savings of up to 40%, depending on one’s tax bracket. Pre-tax premiums are typically employer-sponsored plans and include the following: · Major medical coverage purchased through your employer · Supplemental/voluntary coverage purchased through your employer · Healthcare spending account contributions, such as FSAs · Employer-sponsored reimbursements for medical premiums After-Tax Medical Premiums If one does not want to participate in their employer’s pre-tax plan, or if the employer doesn’t offer a pre-tax plan, one can elect to deduct their medical premiums on an after-tax basis. After-tax premiums include the following: · Major medical coverage purchased on one’s own (for example, purchasing individual health insurance through the Health Insurance Marketplace). · Supplemental/voluntary coverage purchased on one’s own. Tax deductions for after-tax premiums After-tax plans can still offer some savings. One can still list premiums as an itemized deduction on Schedule A when one file’s their income taxes, for all medical expenses and premiums that exceed 7.5% of one’s income. Additionally, most self-employed taxpayers (including owners) can deduct health insurance premiums using Schedule 1 for Line 16 on their tax form 1040. HRAs deliver pre-tax benefits with after-tax flexibility With a health reimbursement arrangement (HRA), one purchases a plan on the individual insurance exchange using after-tax dollars. The employer then reimburses for premiums, and often other out-of-pocket medical expenses, up to an employer-defined amount (this is typically a monthly or annual “allowance”). The reimbursements are made on a pre-tax basis, so one gets the same payroll and income tax benefits as one would with a traditional pre-tax plan. In addition, the employee gets the benefits of an after-tax plan. They choose the exact plan they want and need, typically from a much larger set of carriers and offerings than your employer might offer. Employees can drop the plan at any time and they can take it with them if they leave their employer. (If you leave the employer, you will lose the pre-tax reimbursements.) For more information Contact Jim Pitts at 610-684-6930 or email him at [email protected] or visit www.affinity.mybenefitadvisor.com
3 Comments
Hailey Garcia
6/9/2024 07:07:30 pm
My name is Hailey Garcia and I am from New Jersey. My herpes virus turned to war after 2 years of living with it. I have tried different medical procedures to cure my herpes but to no avail. Most people think herpes is only a minor skin irritation of which herpes has long term effects on health and passes through the bloodstream and can be easily contracted through sexual intercourse. I knew I had herpes from the first day I started feeling itchy in my pubic area and the pain was very unbearable. I couldn't stand it anymore. After 2 years of trying other means to get rid of it, I had to contact Doctor Odunga to help me with a permanent cure. I saw his email and whats-app number from a testimony I read online from a lady who was also helped by him in curing infertility problems, I had faith and contacted him. He assured me of his work and I ordered his herbal medicine. Within 5 days, I didn't feel any pain anymore and within 2 weeks, my skin was all cleared and smooth. I am very grateful to you sir and I write this testimony as others have done to bring those having faith to you sir. If you have herpes or other similar disease and you want it cured, kindly contact Doctor Odunga, Whats-App (wa.me/+2348167159012) OR Email [email protected]
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william wirtz
8/1/2024 09:38:16 pm
I recommend you to get your herbal medicine through Herbal Miracle Medicine . He cured me from my herpes outbreak and now I am free . All thanks for your care and giving me my life back . If you are suffering from any illness you can get your medication from Doc Moses Buba on his .
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Rachael Mildred
10/25/2024 07:30:41 pm
EFFECTIVE LOVE SPELL TO GET EX HUSBAND/BOYFRIEND OR EX WIFE/GIRLFRIEND AND CURE HERPES AND INFERTILITY THAT WORKS WITHIN 24 HOURS.
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