This should be a non-issue. Just between 401k, IRA, and HSA, an INDIVIDUAL can reduce their taxable income by $27,000 every year. If that's not enough to keep you out of the next tax bracket, then CONGRATULATIONS! :D
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We're covered under my wife's medical plan (health worker) and her employer contributes to our HSA.
I'm capped at $18K plus (over 50) catch up $6K in my 401K and not eligible for additional pretax (tax deferred) contributions to any plan. I believe our 401k employer match - which actually goes into ESOP stock also has something to do with that.
I wish we could get our spending under control. Paying hers and one kids student loans isn't helping. Did you know a Nursing degree is more $$$ than a post graduate MBA?
I am driving two paid off 13 & 12 year old vehicles...
Well some bush just got shaved out of the election [Coffee]
Could you contribute to an IRA? Individual cap is $5,500. I'm curious if the HSA contribution cap is still $3,350 with an employer funding.
Well, here is the answer: http://www.shrm.org/templatestools/h...ometothee.aspx
Quote:
Generally, contributions made by an employer to the health savings account (HSA) of an eligible employee are excludable from an employee’s income and are not subject to federal income tax, Social Security or Medicare taxes. In addition, employer contributions are deductible as a business expense to the company.
An employee’s HSA may be funded by contributions from the employer, from the employee or both. Employers may choose to contribute a set amount or make “matching” contributions . The IRS sets annual limits on the amounts that may be contributed to the HSA. Therefore, if an HSA is funded by contributions from both the employer and the employee, it will be important to ensure that the total contributions remain within the annual IRS limits. Contributions made in excess of these annual limits may become taxable income to the employee.
While employer contributions to an HSA may be excluded from the employee’s income, all employer contributions, including those made by the employee through a cafeteria plan, must be reported in box 12 of the employee’s W-2.
- See more at: http://www.shrm.org/templatestools/h....kRBs5BdK.dpuf
Please clap.
:(
Whew... I am really not feeling this night-shift garbage...