Free Articles, Free Web Content, Reprint Articles
Monday, March 25, 2019
 
Free Articles, Free Web Content, Reprint ArticlesRegisterAll CategoriesTop AuthorsSubmit Article (Article Submission)ContactSubscribe Free Articles, Free Web Content, Reprint Articles
 

Health Insurance for the Self-Employed

Having health ... and being able to afford it is a great concern for many who leave a ... job to run their own ... national crisis in health coverage is hitting the small business

Having health insurance and being able to afford it is a great concern for many who leave a corporate job to run their own business.

The national crisis in health coverage is hitting the small business owners especially hard. About 24 million small-business employees and their families are uninsured, according to a study by the Kaiser Family Foundation.

After you leave your employer you may elect to continue to receive coverage in the employer's group plan at your expense for up to 18 months. The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that requires employers to allow departing workers to buy health insurance through the employer's group plan.

However, the cost of the monthly premiums for COBRA can come as quite a surprise if you're accustomed to you employer picking up most of your health insurance tab.

Luckily starting in 2003, if you work as a consultant, freelance worker, and other self-employed individual you will be allowed to deduct all of your health insurance premiums. This is an increase form the 70% that was deductible in 2002. You can take the self-employed health insurance deduction even if you do not itemize your tax return.

But, even with health insurance the medical expenses that come out of your pocket can overwhelm you. If you have to dip into your retirement savings for certain medical expensesScience Articles, the best way to do so is to transfer your IRA or previous 401(k) account to a Self-Employed 401(K) plan that you set up. You can then take a loan from that plan. Loans from a Self-Employed 401(k) plan are tax-free and penalty free as long as they are paid back.

Article Tags: Health Insurance

Source: Free Articles from ArticlesFactory.com

ABOUT THE AUTHOR


By Daniel Lamaute of www.InvestSafe.com Daniel is a retirement plans specialist and owner of Lamaute Capital, (InvestSafe.com) an investment brokerage firm that works with individuals and small businesses.



Health
Business
Finance
Travel
Technology
Home Repair
Computers
Marketing
Autos
Family
Entertainment
Law
Education
Communication
Other
Sports
ECommerce
Home Business
Self Help
Internet
Partners


Page loaded in 0.161 seconds