I’m 23 and am trying to max out HSA contributions. I have two options for opening an HSA.
1) Enroll in my own HDHP through my employer which contributes $600/yr 2) Stay on my parents HDHP and open up an independent HSA, shopping around HSA banks
I’m leaning towards staying on my parents plan, but need a logic check
To my understanding, since I’m not claimed as a dependent and I’m on my parents HDHP I’m allowed to open up my own HSA and contribute up the Family limit of $6900. The fact that I’d have the family limit of $6900 outweighs the $600 of free money from my employer and avoidance of FICA taxes on contribution assuming I’m at the 25% marginal tax rate because my contribution limit would be $3450. Over 4 years of max contributions I’d have a much larger nest egg 27600 v 13800 contributed into an HSA to grow. (assuming contribution limits stay the same)
Does this make sense? Is filing annual taxes a pain with an individual HSA? Are most HSA investment options index funds? Does anyone have recommendations on HSA banks?
Submitted November 10, 2017 at 12:04PM by DirectHits http://ift.tt/2zz87Lc
