MSA Phaseout

[Snaggletooth]

Last year I advised a client to open a Medical Savings Account. That way he could deduct his long-term care insurance and be guaranteed an above-the-line deduction for medical.

Results of this advice? He goes to his bank, and they tell him he makes too much money!

In 2008 he and his wife exceeded $100K AGI and in 2009 they exceed $60K.

I don't read anywhere in TTB or anywhere else where there is a phaseout.

I think bank just didn't want to fool with it. What say ye??

[veritas]

MSA-Medical Savings Accounts

are no longer available.

HSA- Health Savings Account is what your looking for.

First qualification is your client must have a qualified high deductible health plan-HDHP.

[Snaggletooth]

I Stand Corrected

...whatever reincarnations they wish to call this thing, it is on Line 25 of the 1040. The thrust is the same: A Republican solution to the HealthCare crisis by creating a mechanism to allow wealthy people to deduct their own healthcare.

[veritas]

I don't know

of any phaseout.

Maybe there was some miscommunication with the bank.

On another note my bank charges me 4.50 a month for the privilege of letting them use my money. I have been thinking of checking with a credit union.