There are fewer tax favorable investments and write-offs/pre-tax investments today as the tax code has become stricter and some of the favorable stimulus tax savings have sunset.
One of our favorites tax savers DOES still exist!
A Health Saving Account (HSA) is available to individuals and families who have a high-deductible health insurance plan. Not sure if you do, the safest, easiest way to find out is to make a call to your Health Insurance provider as they will know instantly.
Contributions to a HSA are pre-tax and grow tax deferred until use. Best of all, no matter your income, HSA contributions are not phased out or lost at higher income levels.
This from HSA Bank, one of our favorite providers (more on this in Part 2)
You can even make a 2016 contribution in year 2017, similar to an IRA, however the record keeping is challenging and we prefer correct year/non-delayed HSA funding.
In addition to these limitations, you cannot fund an HSA account once you have Medicare coverage! But you can still use these pre-tax funded dollars for qualified medical expenses ….
OR save them for future use ….To be continued….
Have a Great TAX SAVINGS day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth