Show 33 - HSA is your best option?

In this episode, I talk about why an HSA is mathematically most likely your best medical plan.

3/6/20241 min read

black and gray stethoscope
black and gray stethoscope

Insurance is tricky. It is only getting more expensive and every year our insurance premiums seem to increase at the same rate as our yearly raise does (it is absurd, right!?). But luckily, we can put some lipstick on this pig with something called an HSA plan. The HSA plan is mathematically speaking (most likely) the best option for your pocketbook, regardless of your health situation.

Key Ideas

  • HSA money can be used for pretty much any medical expense (anything that goes toward your deductible) and a host of other rather random medical adjacent things.

  • Money you put into your HSA goes in tax-free, can be invested and grow tax-free, and then be withdrawn (for medical purposes OR after retirement age) tax-free!!! That is more tax-free advantage than any other retirement vehicle offered by the government.

  • Even if you’re generally unhealthy and go to the doctor a lot, the HSA plan is probably the best option for you. Here’s how you figure it out. Multiply your monthly premium by 12, then add your total family out of pocket maximum. In my example plan, that number was $33,000 a year for the “good” health insurance” and only $29,000 a year for the HSA plan

  • But it gets even better, with the HSA reduces your taxable income, you get a tax break as well of somewhere around $1,000 (this depends on your tax bracket).

  • Do the math yourself for your retirement package options, but the HSA is a powerful tool I highly recommend you look into.

Show Notes

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HSA eligibility list (it is extensive!)-I don't endorse this website, it just has a helpful list

Show Transcript