Tuesday, February 20, 2018

HSA Learning

I learned something new today.

New job, new benefits. As I was completing all the paperwork, I realized that my employer doesn't sponsor or contribute to an HSA, even though they offer two high deductible health plans.

We already have an HSA - we've been contributing to one at either Peanut's job or my job for years, first at actual expense levels and then fully funding (without withdrawing) for the last several years.

I know I can add money to our HSA any time I want, but I wanted to make sure that I'm getting all of the benefits of an HSA, including the initial tax benefit. (I love HSAs for their triple-tax protection: contribute pre-tax, withdraw tax-free for medical expenses up until retirement age, when you can withdraw for any purpose tax-free.)

My HR person didn't really understand what I was asking about so I did a quick google search and figured it out: we contribute post-tax, and simply deduct the total on our taxes next year. It feels less impressive somehow, but ends up the same financially. Peanut and I are now deciding whether to contribute in one lump sum for the year now or on December 31, or at regular intervals throughout the year.

Perhaps not a big insight - but a helpful one for me, and maybe for you too.

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