Lack of familiarity with self-employed tax advantages leads to lack of tax savings for small business owners. The National Association for the Self-Employed (NASE) provides assistance to the self-employed small business owner by saving them money on their health insurance and out-of-pocket medical expenses through it's Association 105 Health Reimbursement Arrangement(HRA).
(PRWEB) May 29, 2005 -- Health insurance premiums and out-of-pocket medical expenses continue to be a tremendous financial burden for many small business owners. That's why the National Association for the Self-Employed (NASE) has introduced members to a little known tax savings through the Association 105 HRA member benefit.
Administered by Benefits Administration for the Self-Employed (BASE), the Health Reimbursement Arrangement (HRA) is available to qualified small businesses based on IRS Tax Code Section 105. Once implemented, health insurance premiums and non-insured medical expenses can be moved from their personal tax return to their business tax return.
BASE President Terry Harrington said "Our plan saves the average client over $3,000 in annual taxes. This could be the most overlooked tax break for sole proprietors. The most common reaction our clients have when we tell them about this plan is, "Why hasn't my accountant told me about this?"
"While thousands of tax advisors are directing small business customers to businesses like BASE for assistance with section 105 Health Reimbursement Arrangement like the Association 105 HRA, there are still many who are unaware of the potential savings these programs can provide their clients." said NASE Field Service Representative, Michael Johnson.
Although most sole proprietors can already deduct their health insurance premiums on Form 1040 this year, many could double or triple their tax savings with an HRA. For example, a business owner in the 15% federal tax bracket, paying $380 monthly for health insurance premiums and $6,300 annually for out-of-pocket medical will save roughly $912 by taking this deduction on their personal tax return. With the Association 105 HRA, that same business owner would save roughly $3,800.
BASE simply provides a total package, step by step from beginning to end to set up a Health Reimbursement Arrangement (HRA) for qualified small business owners. The company advises the clients and handles all of the necessary documentation required to meet IRS, DOL, and ERISA guidelines. For More information visit www.nase.org or contact Michael Johnson at michael.r.johnson@sbcglobal.net or (214) 263-3052.
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