Health Savings Accounts (HSAs) are a great way to pay for medical expenses, and since unused funds roll over from year to year, the account can also provide a source of retirement funds in addition to other plans like 401(k)s or IRAs.

 

But be aware HSAs can also come with significant disadvantages and less flexibility when compared to other retirement investment tools.

 

The Good

HSAs work best when they are used for their designed purpose: to pay for qualified medical expenses. Neither your original contributions to an HSA nor your investment earnings are taxed when used this way.

 

This makes HSA funds valuable, given that medical costs are one of our largest expenses as we age. The Employee Benefit Research Institute estimates the average 65-year-old couple will need $264,000 to pay for medical care over the course of their retirement. Being able to cover that amount with pre-tax dollars greatly extends the value of retirement savings.

 

In addition, unlike other retirement plans, there is no required distribution of funds after you reach age 70½.

 

The Bad

First, you can only contribute to an HSA if you have a high-deductible health insurance plan. That means you will pay more out of pocket each year when you need to use health services, which could make it difficult to build a balance within your HSA.

 

Second, contributions are limited. Annual contributions to HSAs are limited to $3,400 a year for individuals and $6,750 a year for families. These limits get bumped up by $1,000 for people aged 55 and older. You also may only contribute to an HSA until your retirement age.

 

Finally, HSAs typically have fewer investment options compared with other investment tools, including 401(k)s and IRAs. The accounts often have high management and administrative fees. All this makes building HSA earnings tough to do.

 

The Ugly

Before you reach age 65, non-medical withdrawals from HSAs come with a whopping 20 percent penalty, plus they are taxed as income. Even after age 65, both contributions and earnings are taxed when they are withdrawn for non-medical expenses.

 

In this way, HSAs compare unfavorably with 401(k)s and IRAs, which end their early withdrawal period earlier, at age 59½, and also have lower early withdrawal penalties of just 10 percent.

 

HSAs are a powerful tool to help manage the ever-rising costs of health care. Knowing the rules and the costs associated with using these funds outside of medical expenses can help you position an HSA with your other retirement options. 

https://henryscheinvet.com/…/partnering-for-better…/articles

Taking Stock of Your Practice's Most Valuable Assets 


Read the expert advice in these articles by Burzenski's own Gary I. Glassman, CPA.

 

This is the a series of articles that discuss the insightful viewpoints of four of the most respected and well-known financial experts in the veterinary business today, including our very own Gary I. Glassman, CPA. These experts came together at the invitation of Henry Schein Animal Health, Ceva, Elanco, Merck, Merial, Purina, and Virbac to share their expertise and informed opinions in the areas of pharmacy, nutrition and data.
The mission of the “Veterinary Pharmacy Diets and Data Solutions Workshop” is to bring expert advice and actionable business solutions to increase the practice success of the veterinary customers we serve while reinforcing the veterinarian to the pet owner as the best source of healthcare and product choices for longer healthier lives of the pet family member.

Tax breaks are attractive. But Gary I. Glassman, CPA counsels that you buy the equipment your veterinary hospital needs, your team will use, and your finances will appreciate with great ROI.

https://www.youtube.com/watch?v=UPJbRtmbdzM

 

Take these steps to help prevent fraud in your business

 

How can you prevent employee fraud in your business? Here are four suggestions.

 

  • Screen job applicants. Check work references, criminal records, and professional recommendations. By instituting a screening policy, you may save a lot of cash and grief. Just remember to treat every applicant equally, and get written permission for background checks.

 

  • Reconcile bank accounts. A standard and simple internal control is to separate employees who pay bills and make deposits from those who reconcile accounts. As an owner, making time to personally review deposits and disbursements on a regular basis can deter fraudulent billing or cash skimming schemes.

 

  • Secure inventory and supplies. This can be as simple as regularly changing combinations on warehouse doors or locking supply cabinets. Laptop computers are especially vulnerable to theft, so make a priority of securing them.

 

  • Get a cash control review. Having a trained set of eyes inspect your books, records, and operations can pay for itself many times over. Skilled auditors can ferret out scams and help your business develop stronger controls against criminals, both inside and out.

 

If you'd like assistance with this or any of your business concerns, give us a call at 203-468-8133.

Did hear the news that Microsoft will soon be ending is offer to allow free upgrades for older versions of its Windows Operating System to Windows 10? The deadline to download and install the free upgrade is July 29th, 2016. To read more about it please follow this link: https://blogs.windows.com/windowsexperience/2016/05/05/windows-10-now-on-300-million-active-devices-free-upgrade-offer-to-end-soon/

 

Its very important that you first check with your Veterinary software provider before installing the Windows 10 upgrade. The most progressive Veterinary software providers have already ensured that the most recent versions of their software is compatible with Windows 10, however is still vitally important that you call their technical support lines to double check that you are running the latest version of their software, and that any other associated programs you have installed are also Windows 10 compatible.

 

Once you have verified that your veterinary software is Windows 10 compatible you can purchase any new or replacement computers for your practice with Windows 10 preinstalled installed and save yourself a round of operating system upgrades in the future.

An article from CPA Practice Advisor on Stock vs. Asset Sale as a parameter to business valuation engagements.
http://www.cpapracticeadvisor.com/news/12188993/add-stock-vs-asset-sale-...

To learn more about Burzenski & Company Veterinary Financial Advisors practice valuation & transition services click here: http://veterinaryfinancialadvisors.com/content/practice-valuation-transi...

Learn more about how some veterinarians are changing their office space and professional image to reduce pet and owner stress about coming to the office. Let us know what you think about this growing trend and if you’re planning on getting certified as a fear-free clinic.

http://bigstory.ap.org/article/3f8130450d6440c797db54cbca51dcdb/fear-fre...

Like us on Facebook to stay up to date on growing and building your veterinary practice.

 

http://quickbooks.intuit.com/r/technology-and-security/what-is-emv-and-why-do-i-need-it

This is a video launched by Henry Schein Animal Health as part of their 2014 Veterinary Pharmacy Diets and Data Solutions Workshop. It features Burzenski & Company's Gary I. Glassman, CPA along with other respected and well-known financial experts in veterinary business today. The topic: 2014 Nutrition Volume and Profitability.

Says Gary, "Make sure you watch the video. It really talks to the state of the veterinary industry. It was great working with Fritz Wood, Marsha Heinke and Karen Felsted."

https://www.youtube.com/watch?v=XSBnaDG3NmA&feature=youtu.be

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