Tag Archives: HSA

Taxes are Done… Finally … A Few Tips to Remember Before Sticking that Information Back into the Files

After each tax season we always feel relieved, as the pressure builds slowly but surely, much like the frog in the boiling water. This story has a better ending.

Taxes are done!

Here are a few tips that are hot of the presses and good reminders for NEXT years taxes!

HSA’s are Great, as is all pre-tax medical savings plansUncle Sam

If you can do an HSA, do one. If you are not sure, reach out to your employer and find out if you qualify, they will know in very short order. Don’t worry about using all of your HSA during the year, you will eventually need the funds for medical expenses.

We prefer HSA to the FSA’s or other plans that may expire annually. However, all pre-tax plans for medical expenses are great. When using the FSA or other “use it or lose it” type of plan, just make sure you do use it and do not let those hard earned dollars expire as the calendar turns to a new year.

Max that 401k

Now is a great time to make sure you are maxing your retirement plan. Do it evenly if possible! In a perfect scenario you likely want to run out of contributions in late November or early December. There are situations such as retirement, job change or other that may make it more appealing to fund early.

Do not overfund your 401k. This can be done via a job change or plan change. We have a more comprehensive article coming soon, but be reminded we do not want to over fund our 401k plans.

New plans can be aggressively invested. As the amount grows, the portfolio should be slowed down and be better diversified for the long term.

You Owed a bunch

If you owed a large amount of money and this is occurring repeatedly, it may be time to adjust your exemptions on for your employers W-4 records of your personal exemptions. Determine what your exemptions are currently and make an adjustment down in number. After your next paycheck, extrapolate the adjustment and see if that will cover your liability. Reach out to us if you need help!

Extension Filers

If you filed and extension, keep your feet moving, especially if you had large transactions or other items that may throw you into an “owed” mode. The longer you wait the more the penalties will be if you are caught by surprise.

Relax and enjoy the rest of the week and the full speed ahead into Summer !

You deserve it!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

Should I spend my HSA Account ? (Part 2)

As a reminder, we like the HSA ALOT. If you have a high deductible health plan, funding the HSA is a good idea.medical

While you can fund an HSA next year (2017) for this year’s taxes (2016) we would recommend you not, as the recordkeeping is not always great and can cause tax return issues.

Should I spend my HSA?

So you put your HSA funds in pre-tax, they grow tax deferred and you draw them out without taxes as long as you use them for medical expenses.

We like deferring some of the HSA for later use. If you are in a bind and have a large medical expense, certainly use it. DO NOT feel bad for not using the funds as it is a very good bet you will need them for medical expenses in the future and the tax deferred growth is a big advantage.

Many plans, including our favorite the HSA Bank, allows you to invest the funds easily. Let us know if you have any questions !

Have a Great “Pre-tax Medical Savings” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

Why we like HSA accounts? (Part 1)

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!

HSA Accounts

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)

hsa-bank-2016-limits

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

Management firm.

http://www.jkfinancialinc.com

http://www.street-cents.com
 

HSA Question Answered – Enjoy your weekend

Our last post garnered several questions, fortunately all were the same, so the answer is easy — my bad for not explaining better.

How do I know if I can do an HSA?

HSAIf you are uncertain, call your HR or health provider. Each plan is different, and just because you have a high deductible, DOES NOT automatically make you eligible. In fact, in certain plans (present party included) it is possible for only one person to contribute, NOT both depending on how the plan is set up.

Sorry for the confusion — but thanks for the great response !

Have a great weekend !

John A. Kvale CFA, CFP

PS Anyone spy a new feature roaming on our website or here at street-cents ?

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

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The HSA – Health Savings Account – If you can, fund it !

This week we bring you another tax strategy that may save you extra dollars, while not mandatory before the end of the year – we find it MUCH less confusing to synch the year – make the deposit in the year of the deduction.

Recently in our end of the year tax strategies, we visited Pushing Income , Optimizing Donations, the week prior of IRA Distribution, and the week prior to that a Roth Conversion  to maximize your tax deductions. This weeks topic is simple, the HSA ! HSA

If you have a “High Deductible” health insurance plan – many more do recently, to smartly save on monthly premiums – if you can fund an HSA – DO SO NOW! 

FUND that HSA

Here are the limits from our friends at HSA Bank – (one of our favorite HSA investment options- there are many):

HSA 15 - 16 Limits HSA Bank

 

  • Age 55 – Not 50 for catch up increases
  • Almost without regard to investment, the tax savings are worth it
  • Pre-tax savings for future use or today
  • Pre-tax payments for today or tomorrow

These are just a few examples!

While we do not offer HSA savings plans, they are worth the time and effort to set up, the tax savings are terrific!

Any questions– just reach out- we will be glad to help!

Have a Great — Less Taxable — Day!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225