preface: 31yo male with wife and 3 year old all on the same HSA
Through my employer I have ROTH IRA where I put post tax dollars into an account with limited mutual fund options available. There is only like 50 to choose from but luckily there is a vanguard index fund so I pretty much just use that (VINIX and VWENX)
I put 10% of my salary and the employer matches the first 6%
I also have an HSA where i can put pre tax dollars into the account, invest and grow tax free, and withdraw tax free for qualifying medical expenses. Any security is available with a commission, however there are a few that are commission free like the ETF I put my money into IVW ishares sp500 growth
I was thinking about my investments last night and it occurred to me that I may be potentially taxing myself unnecessarily.
I have enough in my HSA right now where I can cover my family out of pocket maximum for the year so i'm not too worried about it for medical purposes and would like to try and use it more like a standard investment account if that makes sense.
With my ROTH, im paying taxes on my 7%-10% investments that arent being matched by my employer. Would it make sense to move that bit to the HSA to get the triple tax advantage?
I'm not an expert at investing by any means, but from what I understand once i reach the age of 65 i can take out the funds and use them for any means i see fit and would only have to pay ordinary income tax if it isn't a qualified medical expense. if it is a qualified medical expense i retain the triple tax advantage
im sorry i've rambled im still kind of thinking it through. i guess i could sum it up this way. are there any disadvantages im not taking into account with the switch from PlanA to PlanB?
PlanA
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10% salary in 401k ROTH (post tax)
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6% employer match in 401k ROTH
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4.8% in HSA (pre tax)
PlanB
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6% salary in 401k ROTH (post tax)
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6% employer match in 401k ROTH
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8.8% in HSA (pre tax)
or am I just overthinking this and it doesn't really matter
Submitted May 02, 2017 at 07:52AM by blackasssnake http://ift.tt/2p1lq01
