Saving Money on Taxes through High Deductible Health Plans and Health Savings Accounts

I spend most of December coming up with ways to save on taxes in the existing year, and new plans to save on taxes in the next year. My poor CPA receives countless emails with new ideas for tax write-offs. One of 2017’s biggest disappointments was realizing that the thousands of dollars spent on healthcare costs were not tax deductible.

I had the pleasure of getting some advice from Steve Auerbach, CEO of Alegeus, to help me find new ways to save money on healthcare costs. Auerbach recommended exploring HSA plans.

An HSA (Health Savings Account), is an account that allows you to put away money for healthcare costs. All of the money put into the HSA is tax deductible, and can be invested for the future. You can qualify for an HSA by getting a high deductible health plan. Be sure to ask your health insurance company which plans have the option of an HSA. There is no income minimum or maximum in order to qualify for an HSA, it is strictly about which plan you pick.

Auerbach went on to provide the following advice;

“Don’t be afraid of a high deductible health plan. A high deductible plan can give you two things; a lower premium, and the option to put cash away into an HSA.”

The second piece of advice he provided is not to be afraid to contribute to your HSA.

“The value of an HSA can benefit you even more than a 401K. You can put the difference of premium from a low deductible plan to a high deductible plan into an HSA, and the growth from investing should help you get out ahead”.

There are a few weeks still left in open enrollment for healthcare plans, and it is an important time to consider all of your options. Don’t be afraid to explore something that you don’t know very much about, because the benefits can be pleasantly surprising.

Disclaimer:

This article is provided for informational and educational purposes only and contains information that is not suitable for everyone. As such nothing herein should be construed as the provision of personalized investment advice. There is no guarantee that the views and opinions expressed in this article will come to pass. Additionally, this article contains information derived from third party sources. Although we believe these third party sources to be reliable, we make no representations as to the accuracy or completeness of any information prepared by any unaffiliated third party incorporated herein, and take no responsibility therefore. This article should not be regarded as a complete analysis of the subjects discussed. All information and expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change without prior notice.

Steel Peak Wealth Management, LLC (“Steel Peak”) is an SEC registered investment adviser with its principal place of business in Woodland Hills, California. Steel Peak and its representatives are in compliance with the current registration requirements imposed upon registered investment advisers by those states in which Steel Peak maintains clients. Steel Peak may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. This brochure is limited to the dissemination of general information pertaining to its investment advisory/management services. Any subsequent, direct communication by Steel Peak with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Steel Peak, please contact Steel Peak or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov).

For additional information about Steel Peak, including fees and services, send for our disclosure statement as set forth on Form ADV from Steel Peak using the contact information herein. Please read the disclosure statement carefully before you invest or send money.

This post was published on the now-closed HuffPost Contributor platform. Contributors control their own work and posted freely to our site. If you need to flag this entry as abusive, send us an email.
CONVERSATIONS