FJI Supports
Health Savings Account Legislation
Forward Janesville has registered in
support of Assembly Bill 47, a bill to create a state tax exemption for
individuals contributing to health savings accounts.
This bill is nearly identical to AB 4, a bill that FJI supported last
session.
Health
savings accounts are federally tax-exempt accounts used to pay for medical
expenses for employees covered under qualifying high deductible health plans.
Each year, an individual and his or her employer can contribute up to the
deductible of the health plan. Both
the contributions and the account earnings are not subject to federal taxation,
and employer contributions to an employee’s HSA are not considered taxable
income. This legislation,
which was vetoed by Governor Doyle last year, would create
an individual income tax exemption for
contributions to and earnings on health savings accounts, mirroring federal law.