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Health Insurance for the Self-Employed

by Daniel Lamaute

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 expenses, 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.

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.



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PHP to offer individual policies (Fort Wayne Journal Gazette)
16 May 2008 at 3:48pm
Physicians Health Plan of Northern Indiana Inc. said today it would offer health insurance plans for individuals and families as well as through employers.
Leading Online Travel Insurance Comparison Site Adds More Trip Cancellation P...
14 May 2008 at 1:15pm
As the travel insurance market expands, more non US residents seek stable US based insurers for trip cancellation cover. Squaremouth meets that need with new products from iTravelInsured. (PRWeb May 1...
Leading Online Travel Insurance Comparison Site Adds More Trip Cancellation P...
14 May 2008 at 1:00pm
As the travel insurance market expands, more non US residents seek stable US based insurers for trip cancellation cover. Squaremouth meets that need with new products from iTravelInsured.
BILLS: Rookie WR Hardy allegedly brandishes gun (Lockport Union-Sun & Journal)
14 May 2008 at 2:20am
The Buffalo Bills released a statement Tuesday in response to a published report in the Fort Wayne Journal Gazette.
Public records for May 14, 2008 (Daytona Beach News-Journal)
14 May 2008 at 11:28pm
Arrests
Community Calendar - 5/15/08 (Dayton Daily News)
14 May 2008 at 2:54pm
For Fun
Health (Fort Wayne Journal Gazette)
11 May 2008 at 10:23am
ABOUT SPECIAL KIDS: ?Article 7 and Preparing Your Child?s IEP? Workshop, for families and professionals who advocate for children with disability or serious chronic illness, 9 a.m. to 4 p.m.
On Restaurants | Taverns fuel owner's love: civic involvement (The Columbus D...
13 May 2008 at 7:39am
The thing about Elizabeth Lessner is, she cares. And when she cares, she acts. She just took possession of the former Queen Bee Restaurant, 248 S. 4th St., and plans to turn it into Dirty Frank's Hot ...

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More Details On Hotel Identity Theft Ring Expected (KETV 7 Omaha)
16 May 2008 at 5:06pm
Watch live at 1 p.m. as deputies talk about an identity theft case. Original post by Yahoo! News Search Results for identity theft Additional ReadingLifeLock Launches Campaign Designed to Bring Aware...
Identity Theft Assistance Center Expands Offerings to ID Theft Prevention wit...
16 May 2008 at 3:00pm
ITAC, the Identity Theft Assistance Center, today introduced ITAC Sentinel(TM) (www.itacsentinel.com), the only identity protection service with ITAC victim assistance built in. Original post by Yaho...
Identity Theft Assistance Center Expands Offerings to ID Theft Prevention wit...
16 May 2008 at 2:44pm
WASHINGTON?-ITAC, the Identity Theft Assistance Center, today introduced ITAC Sentinel? , the only identity protection service with ITAC victim assistance built in. Original post by Yahoo! News Searc...
Woman accused of running up $33,000 tab in theft of identity (Johnson City Pr...
16 May 2008 at 4:09am
Accused faces nine counts of forgery over $1,000. A Johnson City woman stole her ex-girlfriend?s identity to take out loans and get credit cards and cell phones ? racking up more than $33,000 in debt ...
Identity theft cases on the rise locally (Tooele Transcript-Bulletin)
16 May 2008 at 1:36am
Chances are you have probably written a check at the grocery store, mailed bills from your mailbox, shopped online and casually discarded credit card offers before without giving these matters a secon...
Paper trail leads to federal charges involving identity theft (The Kansas Cit...
15 May 2008 at 11:47pm
A winding paper trail of false names, addresses, Social Security numbers, credit cards and bank accounts led authorities to three people who now face charges relating to identity theft. Original post...
Suspected Identity Theft (WTAJ-TV Altoona)
15 May 2008 at 10:59pm
SAXTON, BEDFORD COUNTY ? Police are looking into a case of identity theft in Bedford County. State Police say 45-year-old Terrie Wright, of Saxton, used another woman?s personal information to get a c...
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15 May 2008 at 3:59pm
flags at half mast World than his. A democrat has flags at half mast, would be forthrightly tell period volkswagen gti vr6 parts, ...
Broward County Shred-a-Thon program fights identity theft (Sun-Sentinel)
15 May 2008 at 8:10am
Program aims to prevent identity theft They like to hit up condos, especially the ones where senior citizens live. They rifle through Dumpsters looking for bank card statements, phone bills and credit...
BSO takes aim at identity theft (Miami Herald)
15 May 2008 at 8:07am
Roughly 500 significant cases of identity theft crossed the desk of Sgt. Jay Leiner, head of the Broward Sheriff?s Office?s Economic Crime Unit, in 2007. Original post by Yahoo! News Search Results f...

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