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Tag Archives: contributions for HSA accounts

October Goals Update

Fall color in Telluride Colorado

There have been a few goal posts lately as we’ve entered the last quarter of 2014. It’s always fun to see how others have done toward their goals. As I’m about to put my 40th year on this earth to bed, it’s time to see how I’m doing with my goals. 2014 Goals 1) Set up a solo 401k and contribute 25% of my income.  Pass One of the great benefits of being self employed is that you can open a solo 401k and contribute more than you’d be able to with a traditional employer sponsored plan.  Since one of the worst things about self employment is taxes, it’s nice to be able to offset as much income as possible into a tax deferred account. With a solo 401k, you can contribute the standard $17,500 PLUS 25% of your income up to $52,000 for people under age 50. I wasn’t able to do that much, but should be right on track for investing 25% of my income into my solo plan this year. 2) Max out our family HSA. Pass This year we decided to invest our HSA into Vanguard funds. We don’t plan on touching this money until retirement ...

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Investing Your Health Savings Account in the Stock Market

I have had a health savings account eligible insurance plan since they first became available. I love the triple tax advantages of the HSA. Pre-tax or tax deductible contributions   Money grows tax free   No taxes or penalties if money is withdrawn for approved health care spending   You can potentially never pay taxes on this money! Is that a great deal or what? Recently, though, we’ve decided to let our HSA dollars do even more for us. We’ve decided to invest our HSA in the stock market as a great way to improve our finances and here’s why. Low Interest Savings Account Currently our HSA is in a savings account. When we opened that account, I believe it earned 3% interest. Now it earns 0.19%. We made $2.94 in tax free money from our HSA last year. That’s enough to retire on, right? We Don’t Want to Spend Our HSA Money Anymore In past years, we have only put money into our HSA when we had a medical expense. Then we would withdraw it to pay the medical bill. Over the past couple of years, we’ve built up a little money, but not much because we wipe it ...

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