02-12-2017, 02:45 AM
About HSA:
An HSA functions sort of like an IRA: pre-tax money goes in.
If you use the HSA to pay qualified medical expenses, then the money isn't taxed when you pay it out, unlike an IRA.
If you use the HSA for non-qualified expenses--a vacation cruise, down payment on a Range Rover--it's taxed, which is exactly what happens with an IRA.
Paying into an HSA and using it for medical expenses is the only way an ordinary taxpayer can completely avoid taxes on earned income.
You cannot pay into an HSA after you begin taking social security (in any form) and the limit is $6,750 for a family, and $3,350 for an individual. If you're over 55, you can bump those limits by $1,000.
An HSA functions sort of like an IRA: pre-tax money goes in.
If you use the HSA to pay qualified medical expenses, then the money isn't taxed when you pay it out, unlike an IRA.
If you use the HSA for non-qualified expenses--a vacation cruise, down payment on a Range Rover--it's taxed, which is exactly what happens with an IRA.
Paying into an HSA and using it for medical expenses is the only way an ordinary taxpayer can completely avoid taxes on earned income.
You cannot pay into an HSA after you begin taking social security (in any form) and the limit is $6,750 for a family, and $3,350 for an individual. If you're over 55, you can bump those limits by $1,000.