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HSA contributions - better through payroll deduction or on own?
Old 04-09-2018, 01:57 PM   #1
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HSA contributions - better through payroll deduction or on own?

This may be a dumb questions but here goes...

Is it better to contribute additional contributions to my HSA through payroll deduction (I am a federal employee) or on my own direct to my HSA? Does it make any difference for taxes?

Thanks!
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Old 04-09-2018, 02:32 PM   #2
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Sometimes employers shoulder the fees. Other HSA providers may allow better investing options, if you plan to hold out for the long term.
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Old 04-09-2018, 03:49 PM   #3
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Originally Posted by movaly1 View Post
This may be a dumb questions but here goes...

Is it better to contribute additional contributions to my HSA through payroll deduction (I am a federal employee) or on my own direct to my HSA? Does it make any difference for taxes?

Thanks!
I think you get a break on your payroll taxes if you do it that way.
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Old 04-09-2018, 04:02 PM   #4
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If I remember correctly you avoid fica taxes on your contribution if its payroll deducted
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Old 04-09-2018, 04:06 PM   #5
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If I remember correctly you avoid fica taxes on your contribution if it’s payroll deducted
+1 In our case same experience. Contributions through employer's "cafeteria plan" reduce employee's Medicare and Social Security withholding on W2.

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Old 04-09-2018, 05:29 PM   #6
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+1 In our case same experience. Contributions through employer's "cafeteria plan" reduce employee's Medicare and Social Security withholding on W2.

-gauss
Wife and I worked for the same company so health benefits/coverage were equivalent. Her earnings didn't hit the FICA earnings cap, whereas mine exceeded it. I shifted to having her carry the medical so that she could make the HSA coontributions, just because she would actually realize the FICA tax savings. Just something to consider for high earner/lower earner couples.

Also as someone else stated our employer covered the monthly HSA maintenance fees until she retired. Afterwords there was a $5/month charge.
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Old 04-09-2018, 09:34 PM   #7
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+1 In our case same experience. Contributions through employer's "cafeteria plan" reduce employee's Medicare and Social Security withholding on W2.

-gauss
But wouldn't that also potentially reduce your Social Security benefit?
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