Agree - thanks for sharing nuances with eat what you kill, or any contract/consulting gigs - especially with Health insurance. Many such trade/business/contact/self-employed folks — usually have their spouses work in low-stress or part-time jobs which provide full/group Health insurance. But, it must be difficult to raise 4 kiddos - with your already hectic schedule. Kudos - now you are proud parents of 4 successful kids !!
If Employer sponsored HSA plan used via Payroll contributions (usually via employer Cafeteria plan) - in such scenario, even the FICA (Social Security & Medicare) taxes are NOT applied on the contributions .. (along with AGI reduction helping towards stimulus, Roth contributions, FAFSA, or Obamacare, among other things). That makes HSA quadruple tax advantaged!!Also, after Agee 65 — you can convert/transfer HSA account/monies to regular IRA — preventing any “immediate taxation” upon non-spousal inherited account. (Then again - when that need to be done - can it be done after death — doubt it!! So, there might be some planning window/opportunity you have to seek for such IRA conversion; Alternatively- if HSA end up being too large after 65, besides reimbursing for saved receipts, change a portion of HSA to IRA to open up 10-year window for non-spousal beneficiaries ..)
Comments
Agree - thanks for sharing nuances with eat what you kill, or any contract/consulting gigs - especially with Health insurance. Many such trade/business/contact/self-employed folks — usually have their spouses work in low-stress or part-time jobs which provide full/group Health insurance. But, it must be difficult to raise 4 kiddos - with your already hectic schedule. Kudos - now you are proud parents of 4 successful kids !!
Post: Paid to Play
Link to comment from February 16, 2022
If Employer sponsored HSA plan used via Payroll contributions (usually via employer Cafeteria plan) - in such scenario, even the FICA (Social Security & Medicare) taxes are NOT applied on the contributions .. (along with AGI reduction helping towards stimulus, Roth contributions, FAFSA, or Obamacare, among other things). That makes HSA quadruple tax advantaged!! Also, after Agee 65 — you can convert/transfer HSA account/monies to regular IRA — preventing any “immediate taxation” upon non-spousal inherited account. (Then again - when that need to be done - can it be done after death — doubt it!! So, there might be some planning window/opportunity you have to seek for such IRA conversion; Alternatively- if HSA end up being too large after 65, besides reimbursing for saved receipts, change a portion of HSA to IRA to open up 10-year window for non-spousal beneficiaries ..)
Post: Healthy Gains
Link to comment from April 20, 2021