The HSA is the ONLY triple tax-advantaged account.
But only 9.3% of Americans own one.
Here's everything you need to know about the HSA:
(and why you should have one)
But only 9.3% of Americans own one.
Here's everything you need to know about the HSA:
(and why you should have one)
What are HSAs?
HSAs are Health Savings Accounts.
You save money in HSAs for future medical expenses.
And they are the ONLY triple tax-advantaged account.
But before you just “get” an HSA, you need to qualify for one.
Here’s how you qualify for an HSA:
HSAs are Health Savings Accounts.
You save money in HSAs for future medical expenses.
And they are the ONLY triple tax-advantaged account.
But before you just “get” an HSA, you need to qualify for one.
Here’s how you qualify for an HSA:
To open an HSA, you need to have an HDHP.
An HDHP is a High Deductible Health Plan.
HDHPs:
- Have higher minimum deductibles
- Have higher out-of-pocket maximums
- Are best for people with LESS health issues
So if you rarely see a doctor, then HDHPs could be a good fit.
An HDHP is a High Deductible Health Plan.
HDHPs:
- Have higher minimum deductibles
- Have higher out-of-pocket maximums
- Are best for people with LESS health issues
So if you rarely see a doctor, then HDHPs could be a good fit.
Why should you get an HSA?
- You can save $$$ on taxes
- You can grow your retirement nest egg
- You can save $$$ on health insurance premiums
- You can save $$$ on taxes
- You can grow your retirement nest egg
- You can save $$$ on health insurance premiums
Where do you get an HSA?
If you’re self-employed:
- Check out the health insurance marketplace
If you’re an employee:
- Ask your employer if they offer HSAs (not all jobs offer HSAs)
If you’re self-employed:
- Check out the health insurance marketplace
If you’re an employee:
- Ask your employer if they offer HSAs (not all jobs offer HSAs)
HSAs are the ONLY savings account with a TRIPLE tax advantage.
Here’s what this means:
- Contributions are tax-deductible
- You can invest your contributions
- Any investment growth is tax-deferred
- Any withdrawals for qualified MEDICAL expenses are tax-free
Here’s what this means:
- Contributions are tax-deductible
- You can invest your contributions
- Any investment growth is tax-deferred
- Any withdrawals for qualified MEDICAL expenses are tax-free
Qualified Medical Expenses include (but are not limited to):
- Flu shots
- Ambulance
- Physical therapy
- Drug prescriptions
- Eyeglasses (Rx & reading)
- Doctor’s office visits & co-pays
- Flu shots
- Ambulance
- Physical therapy
- Drug prescriptions
- Eyeglasses (Rx & reading)
- Doctor’s office visits & co-pays
What if you withdraw $$$ for expenses that are NOT qualified?
You’ll owe:
- Income taxes
- 20% tax penalty on your withdrawals
You’ll owe:
- Income taxes
- 20% tax penalty on your withdrawals
Here’s the LOOPHOLE:
The 20% penalty applies only until you’re 65.
After 65, the 20% penalty drops.
So you can spend your HSA money on a Lamborghini WITHOUT the 20% penalty.
You'll still owe income taxes on withdrawals that are NOT used for qualified medical expenses.
The 20% penalty applies only until you’re 65.
After 65, the 20% penalty drops.
So you can spend your HSA money on a Lamborghini WITHOUT the 20% penalty.
You'll still owe income taxes on withdrawals that are NOT used for qualified medical expenses.
So how much $$$ can you ACTUALLY put into an HSA?
If you’re UNDER age 55 then in 2024, your contribution limits are:
- Single: $4,150
- Family: $8,300
If you’re age 55+ then in 2024, your contribution limits will be increased by $1,000:
- Single: $5,150
- Family: $9,300
If you’re UNDER age 55 then in 2024, your contribution limits are:
- Single: $4,150
- Family: $8,300
If you’re age 55+ then in 2024, your contribution limits will be increased by $1,000:
- Single: $5,150
- Family: $9,300
Want to be a millionaire?
Then follow this HSA trick:
Contribute to your HSA and then… INVEST your contributions.
Use your HSA like a retirement account.
Let your contributions GROW in the stock market over time.
Then follow this HSA trick:
Contribute to your HSA and then… INVEST your contributions.
Use your HSA like a retirement account.
Let your contributions GROW in the stock market over time.
Here’s how to INVEST in an HSA:
MOST HSAs will typically have your first $1,000 stay in cash.
Any contribution ABOVE that can be invested.
Your HSA will provide you with a list of funds.
You choose how you want to invest your money.
And each year, invest more.
MOST HSAs will typically have your first $1,000 stay in cash.
Any contribution ABOVE that can be invested.
Your HSA will provide you with a list of funds.
You choose how you want to invest your money.
And each year, invest more.
The key to using an HSA like a retirement account is to KEEP your contributions invested.
If you invest the maximum annual amount, with a 7% return in 40 years, you could have:
- Single: $880,048.51
- Family: $1,771,526.21
If you invest the maximum annual amount, with a 7% return in 40 years, you could have:
- Single: $880,048.51
- Family: $1,771,526.21
Here’s ANOTHER HSA trick:
Save receipts for qualified medical expenses.
Reimburse yourself (tax-free) later.
There’s no deadline when you have to submit your medical receipts.
Save receipts for qualified medical expenses.
Reimburse yourself (tax-free) later.
There’s no deadline when you have to submit your medical receipts.
Here’s how to take advantage of HSAs:
1. Pay for qualified medical expenses using a credit card
2. Collect credit card points
3. Save receipts for qualified medical expenses
4. Reimburse yourself (tax-free) at a later point
1. Pay for qualified medical expenses using a credit card
2. Collect credit card points
3. Save receipts for qualified medical expenses
4. Reimburse yourself (tax-free) at a later point
HSAs were introduced in late 2003 and are one of the best-kept secrets to building wealth.
Now you know how to use an HSA to YOUR advantage.
Start building wealth today.
Now you know how to use an HSA to YOUR advantage.
Start building wealth today.
Thanks for reading!
If you found this thread helpful:
1. Bookmark this thread
2. Follow me @The_MMW for more insights
3. Share the first post so it can help more people 👇
If you found this thread helpful:
1. Bookmark this thread
2. Follow me @The_MMW for more insights
3. Share the first post so it can help more people 👇
PS:
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Over 30,000 people subscribe.
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