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Tax benefit to HSA contributions while retired?
Old 09-14-2016, 12:05 AM   #1
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Tax benefit to HSA contributions while retired?

According to the IRS you don't need to earn money to contribute to an HSA, and you can get an income deduction even without itemized deductions (1). I'm wondering if retirees have tried this and seen the deduction in their taxes.


(1) IRS: "You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you do not itemize your deductions on Form 1040."
https://www.irs.gov/publications/p96...link1000204020
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Old 09-14-2016, 06:38 AM   #2
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Many of us use HSAs to reduce our taxable investment sourced income.
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Old 09-14-2016, 07:24 AM   #3
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Yes, it's a nice up front deduction off our taxable income.
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Old 09-14-2016, 08:14 AM   #4
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Used to but my current health insurance plan is non-HSA.
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Old 09-14-2016, 08:15 AM   #5
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Yup. It is free money.
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Old 09-14-2016, 08:31 AM   #6
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HSAs are the best kept secret.

Well, maybe not best kept secret, but I remember when I FIRE'd (before ACA), the missing piece of the puzzle was what to do for health insurance. That was my first introduction to HSAs and had me thinking, almost too good to be true. What's the catch? If there is any catch, I say to keep good records in case you have to show all the receipts of qualified medical expenses to the IRS. But, that's really not a catch as you should be keeping good records anyhow.
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Old 09-14-2016, 10:26 AM   #7
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It's only available if you have a high deductible plan. Since i'm low income my deducible is $500 so i'm not eligible. I'd definitely use it if I could but i'll take the cost sharing too.
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Old 09-14-2016, 10:35 AM   #8
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It has even better use

If your income is over 64k per couple and you face "Subsidy Cliff"... that is paying for Health insurance 10k+ instead of upper limit of 5800. You can reduce that income via HSA contribution.

That can mean 5k-8k savings on Health Insurance. 13k in this example: https://www.healthinsurance.org/blog...subsidy-cliff/
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Old 09-14-2016, 12:50 PM   #9
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Thanks for the replies, I'll give HSA contributions a go.
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