Finance Dave
Thinks s/he gets paid by the post
- Joined
- Mar 29, 2007
- Messages
- 1,864
I'm always looking at ways to save more tax-deferred since I'm in a relatively high bracket today.
I have an HSA through work, which allows both wife and I to save about $3,000/year in the account, then use it for medical expenses.
However, what most people do is use the money to pay their medical costs. What we do is pay the medical costs with after-tax dollars, and let the tax deferred HSA grow.
The rules say we can use them later in life...so I'm not worried about being able to use the amount at some point...we'll definitely need it.
We've been funding this for about 4 years now...and we can invest the money in various mutual funds, so we've invested $24,000 and it's now at about $25,000.
What do you think of this strategy?
Note this is an HSA, not an FSA...which has more restrictive rules.
I have an HSA through work, which allows both wife and I to save about $3,000/year in the account, then use it for medical expenses.
However, what most people do is use the money to pay their medical costs. What we do is pay the medical costs with after-tax dollars, and let the tax deferred HSA grow.
The rules say we can use them later in life...so I'm not worried about being able to use the amount at some point...we'll definitely need it.
We've been funding this for about 4 years now...and we can invest the money in various mutual funds, so we've invested $24,000 and it's now at about $25,000.
What do you think of this strategy?
Note this is an HSA, not an FSA...which has more restrictive rules.