Retirement Health Savings Plans - A brief overview
By Charles Hopkins
Published 08/8/2006 | Social Issues
Retirement woe is synonymous to post retirement health problems. That bothers you the most. Its quite natural because your aged bones cannot have that physical charge you had in your young days. So how do you plan for those days?
For most of you are out of a steady income and depend on fixed money. Anytime and every time, it may happen that you get attacked by some sort of disease. That can be the common cold or heart disorder, kidney problem or diabetes. Whatever it may be you have to stay under constant supervision of a doctor. And wherever you go, money is must. This actually doubles your tension if you dont have a clear plan in front of you regarding your investments after retirement before you actually retire.
Have you heard of Retirement Health Savings Plans (RHSP)? Yes VantageCare Retirement Health Savings Plan! This is actually a scheme provided to you by your employer to save your money during your job period for health security when you retire. So bit by bit if you can store at an earlier stage, problems are reduced after retirement.
The RHSP actually allows a working employee to save the money in a planned way while he is at work and the amount he actually deposits for this purpose throughout his work period is supplemented by his/her employer.
Just take a look of the basic features of Retirement Health Savings Plan!
- RHSP works on a contributory term and you can opt for it by letting a part of your income as the contributory amount.
- This will also include your annual leave, sick leave when it extends a certain period according to the company standards and also other floating holidays. That means the amount fixed for these leaves can be put in the contribution list.
- The best part of this contribution is that it is tax free.
- For this reason you can enjoy every tax free benefit and access the ICMA-RC investment opportunities.
- As per the plans account, you can use a tax free compensation of the medical expenses after you retire or leave a job. But if the reimbursement is delayed, then taxes are included.
- RHSP is not just for the benefit of the employee at work but for his/her spouse and eligible dependents.
What type of treatments you can avail through RHSP?
- The medical expenses you can bear according to this plan must be IRS qualified medical and dental related expenditures.
- Your health and dental insurance premiums will be included in the terms of this plan.
- This can be coinsurance, deductible and co-payments amounts as well along with such other provisions.
How will you enroll yourself into RHSP?
- If you are in service for one year you are eligible to join the plan.
- There is a scheduled election term for a month to join this plan which is mostly October 1-31 each year.
- Once you join it, your account will be followed the next month after the election window gets over.
- You will have to fill up the VantageCare RHSP Employee Enrollment Form and submit it to your benefits office and then they will check up your details and take the necessary actions.
- After you wind up with your enrollment procedure, you start contributing from the following year of your election.
Arent things cool? Just a bit of initiative and you stay healthy; also keep your family well protected!