Wife is LLC | Health Ins for her on my plan or her solo for write off?

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Topic Author
soladeogloria1
Posts: 18
Joined: Wed May 29, 2019 11:24 am

Wife is LLC | Health Ins for her on my plan or her solo for write off?

Post by soladeogloria1 » Sun Nov 17, 2019 1:09 pm

Hi all:

I’m about to be 34, wife is 30, both in good health. I’m switching to an HDHP through work and going to max / invest HSA. Wife is a realtor, I have an option to include her on my plan for like 450/mo and also double HSA contribution. Today she spends 300/mo for some emergency freedom life plan that I am still. It clear on what it provides (sort of CIGNA PPO bundles inside but the coverages are confusing).

Questions:

1. If I include her on my plan, is the additional cost able to be GC deducted because it’s for her and she’s an LLC (I don’t think because it’s going through my plan / I’m w2)

2. Might it just be better to take that same 450 and get her a better plan and she can deduct it herself as an LLC?

3. If so, there are individual plans with HSA in Fla (very limited selection) but the deductibles are like 5-6k with max out of pocket of 8k; not sure the value of an HSA would matter much there.

Appreciate you all!

dru808
Posts: 176
Joined: Sat Oct 15, 2011 2:42 pm

Re: Wife is LLC | Health Ins for her on my plan or her solo for write off?

Post by dru808 » Sun Nov 17, 2019 1:33 pm

No answer but damn $450 a month for a hdhp for a 30yo? I thought my premium was high, 36 with a non deductible 80/20 gold plan $468. Where do you live where it’s so high?

Topic Author
soladeogloria1
Posts: 18
Joined: Wed May 29, 2019 11:24 am

Re: Wife is LLC | Health Ins for her on my plan or her solo for write off?

Post by soladeogloria1 » Sun Nov 17, 2019 2:23 pm

Palm Beach County, Florida. There are solo plans for her in the 300s but they’re like bronze, coins low, deductibles 5-6k, max out of pocket 8k etc

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RickBoglehead
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Re: Wife is LLC | Health Ins for her on my plan or her solo for write off?

Post by RickBoglehead » Sun Nov 17, 2019 2:33 pm

1) Absolutely not.

2) Unlikely. Quite easy to run the numbers through tax software and see though.
Avid user of forums on variety of interests-financial, home brewing, F-150, PHEV, home repair, etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.

JediMisty
Posts: 351
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Location: Central NJ

Re: Wife is LLC | Health Ins for her on my plan or her solo for write off?

Post by JediMisty » Sun Nov 17, 2019 3:01 pm

soladeogloria1 wrote:
Sun Nov 17, 2019 1:09 pm
Hi all:

I’m about to be 34, wife is 30, both in good health. I’m switching to an HDHP through work and going to max / invest HSA. Wife is a realtor, I have an option to include her on my plan for like 450/mo and also double HSA contribution. Today she spends 300/mo for some emergency freedom life plan that I am still. It clear on what it provides (sort of CIGNA PPO bundles inside but the coverages are confusing).

Questions:

1. If I include her on my plan, is the additional cost able to be GC deducted because it’s for her and she’s an LLC (I don’t think because it’s going through my plan / I’m w2)

2. Might it just be better to take that same 450 and get her a better plan and she can deduct it herself as an LLC?

3. If so, there are individual plans with HSA in Fla (very limited selection) but the deductibles are like 5-6k with max out of pocket of 8k; not sure the value of an HSA would matter much there.

Appreciate you all!
In regards to deductibility of the premium. Check to see if your insurance premium is coming out of your salary pre-tax rather than post-tax. If it is pre-tax, the premium will already be deducted. Most employer plans are at a group rate, so even paying her whole premium, it is likely a better value than buying on the open market.

Topic Author
soladeogloria1
Posts: 18
Joined: Wed May 29, 2019 11:24 am

Re: Wife is LLC | Health Ins for her on my plan or her solo for write off?

Post by soladeogloria1 » Sun Nov 17, 2019 4:41 pm

Great points and thank you. I believe it is pre tax (I’ll check tomorrow as I need to finalize all of this for open enrollment).

If that is the case, the plan itself is likely better (better deduct, max pocket, and co-ins) and then I surely can take advantage of the family HSA limit at 7k.

Spirit Rider
Posts: 11868
Joined: Fri Mar 02, 2007 2:39 pm

Re: Wife is LLC | Health Ins for her on my plan or her solo for write off?

Post by Spirit Rider » Sun Nov 17, 2019 6:46 pm

The self-employed health insurance deduction is only available for individuals not eligible for coverage under their or a spouse's employer group health insurance plan. Since your spouse can be covered under your plan. She can not take the self-employed health insurance deduction for her own health insurance premiums. Pass-thru business owners can not deduct their own health insurance premiums from business income.

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