People with high-deductible health plans qualify for a health savings account (HSA). A high-deductible health plan is one where you are responsible for paying the first $1,150 of your own expenses for an individual plan or $2,300 for a family plan. The high deductible is in exchange for lower insurance premiums than traditional health insurance.

Once you obtain this type of coverage, you can open your health savings account and make a tax-free rollover from your IRA. You may move up to $3,000 to an HAS for individual coverage or up to $5,950 for family coverage. If you are 55 or older, you can contribute an extra $1,000 in 2009.

The benefit of having a health savings account is that you can use the money to pay your medical expenses without being forced to pay Uncle Sam! In addition, your HSA can grow tax-free like your IRA.

The IRA to HSA rollover is a once-in-a-lifetime option, so it's a good idea to transfer the maximum allowed to establish the account. Anyone under the age of 65 who buys a qualified high-deductible policy can open an HSA.

Each year, you may contribute the maximum amount to your HSA; in 2009, it is $3,000 for individuals and $5,950 for family coverage. HSA's can be opened on your own or through your employer. The first step is to find a list of health insurance companies who offer HSA-eligible plans in your state at HSAinsider.com or you can compare several companies? policies in most states at eHealthinsurance.com. You can also search for a local agent who knows which policies are available in your area at the National Association of Health Underwriters web site.

Michael McGee is a financial planner specializing in retirement and health care planning for people of all ages and income levels. Health care costs are constantly increasing while fewer employers are offering pension plans and health care benefits. Michael can help you establish a health care plan to cover routine medical procedures and long-term health care for the future. Learn more at http://retirementplanningoaklandcounty.blogspot.com/