End of the Year Planning

With the holiday season almost upon us and 2012 quickly approaching we wanted to take this opportunity and address some insurance related issues that a new calendar year always brings up. Whether you have an individual or employer sponsored Health Insurance plan, a Life insurance policy, Dental and Vision plan, or some combination thereof, here are a few things to keep in mind as we close out 2011 and usher in 2012.

Health Insurance:
For most policies, your Medical plan’s deductible (or copay maximum amounts for HMO plan holders) and maximum out-of-pocket limits are based on a calendar year regardless of when your coverage became effective. All deductibles, copays, and out-of-pocket maximum amounts will therefore be renewed on January 1, 2012. If you are unsure about your policy please refer to your policy booklet or call our office.

Dental and Vision Insurance:
If you have Dental insurance, your deductible and annual benefit maximum(s) also most likely follow the calendar year and will reset January 1, 2012. If you have Vision insurance this is the only set of benefits that track to your last date of service. For example, if you visited a provider on March 15th of 2011, and your plan provides for an exam every 12 months, you would be eligible for another exam after March 15th 2012.

Health Savings Accounts (HSA):
As set forth by Congress and the IRS, the annual HSA contribution maximums will be changing for 2012. Individual contribution maximums will increase by $50 and Family contributions by $200. If you are age 55 or older your catch-up contribution will remain $1,000.

2012 HSA Limit for Individual Coverage

The 2012 maximum annual amount that can be contributed to an HSA is $3,100 for an individual, up $50 from $3,050 in 2011.

2012 HSA Limits for Family Coverage

The 2012 maximum annual amount that can be contributed to an HSA is $6,250 for families,  up $100 from $6,150 in 2011.

2012 HSA Limits for Catch-Up Contributions

Persons over age 55 are entitled to an additional annual catch-up contribution of $1,000 in 2012—a number that unchanged from 2011.

Remember, you have until April 15th 2012 to make your 2011 HSA contributions. If you have any general questions about HSA account funding please call our office at 800-570-6333 or send us an email at info@vanwinkleinsurancegroup.com

Life Insurance:
If you have an existing Life insurance policy it is a good time to review the coverage and make sure the policy fits your current needs. If you have bought or sold a business, gotten married, had children, bought a house, or if any number of other important life events have take place since purchasing your policy, you may be under or over insured. If you don’t currently have any Life insurance, start 2012 off right by protecting your family and the ones you love with a Life insurance policy. The process is easy and rates are very reasonable.

Finances:

If you currently have investments and close to retirement or in retirement, please contact your financial advisor for end of the year planning. Find out if you could potentially alleviate any burdensome tax bills and investment shortfalls by investing in 2011 vs. 2012.

About Christopher Files

Christopher Ray Files is a Financial Planner and Wealth Management Advisor for Van Winkle Agency in Seattle, Washington. As a active tactical adviser, Chris is committed to assisting his clients with dynamic and balanced portfolio options. Specialty focus on Estate Planning, Investment Strategies, Tax Efficient Planning and Financial Consulting for large and small businesses. Chris is also the Executive Director for a 501(c)3 Non Profit benefiting orphaned youth in Africa sending new and recycled art supplies to Kenya and Uganda. For more information about Chris, schedule an appointment, media inquiry, or general questions please email info@vanwinkleinsurancegroup.com