Individuals with a high deductable medical plan can put $3400 a year in an HSA.
Its a pretty sweet deal:
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If your employer participates HSA contributions are income tax and FICA tax free. For the average American that is a 33% tax savings.
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Withdrawls for medical expenses are tax and penalty free
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Earnings on growth is tax and penalty free
So theoretically I could do this:
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Contribute $3400 each year for the next 30 years.
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Keep all receipts of medical expenses for the next 30 years but don't make any withdrawls.
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After 30 years with 8% growth, the account would be worth $450,000.
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Theoretically you could take out that $450,000 tax free to reimburse yourself for the last 30 years of medical expenses and future medical expenses.
Am I missing something here? I know HSA's have higher fees but I think the triple tax break would more than make up for it.
The other issue is if the IRS will let you reimburse yourself for medical expenses dating decades ago?
Submitted September 06, 2017 at 10:45AM by nbagenius2000 http://ift.tt/2eLhstC
