neurosphere wrote:How much do you save in premiums with the HSA vs a non-HSA insurance, if you have both options?
Do the HSA funds come out of your paycheck such that you do not have to pay FICA taxes on the HSA contributions?
winkleweizen wrote:1) The HSA premium would be 1700. The premium for the one I would get for Non-HSA would be 0.
G-Money wrote:winkleweizen wrote:1) The HSA premium would be 1700. The premium for the one I would get for Non-HSA would be 0.
From your earlier post, I think you mean "deductible" here, not "premium." The premium is the monthly cost you pay directly to the insurance company for health insurance. A deductible is the out-of-pocket expenses you pay before any insurance coverage is triggered.
Almost always, HSAs have lower premiums than more comprehensive health insurance plans because the costs of insurance are lower for the insurance company (because there is a higher deducible, co-insurance, etc.). I presume neurosphere was asking about the premiums because it may be that the lower cost of the premiums will allow you to fund both the HSA and a Roth.
If your employer provides health insurance, see if the employee contribution for health insurance premiums is lower for an HSA than for a more comprehensive plan. If there is no premium cost savings for the employee to choose an HSA, then you don't have much reason to choose the HSA. If you need to buy your own health insurance, then you will see that HSAs have significantly cheaper premiums than other plans.
winkleweizen wrote:O sorry, yeah brain fart.
winkleweizen wrote:Yeah so the premiums are basically a wash like roughly 45 versus 55 dollars a month
So I am a recent graduate of medical school and will be starting my residency in California. I made a budget for myself and figured I can put in roughly 5000 dollars of investments each year. As my employer doesn't offer a 401k match, I was thinking of either funding a Roth IRA fully or funding an HSA and part of a ROTH IRA.
The only reservation I have is in order to be eligible for an HSA I would have to pick a health insurance with a 1700 deductible as opposed to one with no deductible. Im a relatively healthy 26 year old and dont envision meeting that deductible so that would be my reservation. Also the fact that I will be in California and that an HSA wont help with my state taxes.
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