FI Minded: Bridging Pre FI Discipline and Post FI Freedom in Financial Independence The Ultimate Retirement Account: Health Savings Account (HSA) | E116 Sean Mullaney
We often hear about 401Ks and IRAs, two incredible retirement planning tools but what if I told you there was a third, secret retirement account that trumps both of these?
Today we are discussing the Health Savings Account, or HSA, and why the HSA is not only a financial game-changer for managing your medical expenses but also a powerful tool to build wealth for your future.
This episode is a replay of episode 40 where I interviewed Sean Mullaney Financial Planner, and the voice behind FITaxGuy.com. I needed to recast this episode because it is hard to cover Mastering Money at Work if I don’t talk about HSAs.
You’ll uncover how HSAs offer a triple tax advantage, giving you tax deductions when you contribute, tax-free growth, and tax-free withdrawals for qualified medical expenses.
But here’s the real kicker: an HSA can become a pseudo-retirement fund by delaying your reimbursements and investing your contributions for the long haul.
If you want to learn how to do that along with if you qualify for an HSA, how to keep your expenses organized, and what to do if your company doesn’t offer an HSA, well then you’re in the right place.
Also, note this episode is originally from 2021. All of the information is still relevant and helpful but the HSA contribution limit has increased from $3,600 to $3,850 and increasing to $4,150 in 2024.
Alright, let’s get into it. I hope you enjoy my conversation with FI Tax Guy himself…Sean Mullaney.
Key Takeaways:
- What is a HSA
- How do you qualify for a HSA
- Tax benefits of an HSA
- Is a HSA my health insurance?
- Who a HDHP the right for you
- How to figure out if your insurance qualifies for a HSA
- How to get a FICA tax break when funding your HSA
- Examples of qualified medical expenses
- How to use your HSA as a pseudo-retirement account
- The HSA contribution limit (increased to $3,850 in 2023)
- How to keep your HSA expenses organized
- How to set up an HSA independently if your employer doesn’t offer one
Mentions:
IRS Publication 502: https://www.irs.gov/pub/irs-pdf/p502.pdf
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More of The Struggle is Real:
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