Have you heard of the health savings account or HSA and how cool they might be maybe that's why you're watching this video
well
I love the HSA and as a CPA and tax attorney small business advisor whenever my clients can qualify
I want them to think about the HSA
So what I'd like to do in this video is break down the basics of what they are and maybe five
Requirements and benefits of the HSA you're gonna love it
First what is an HSA an HSA is just that a health savings account
It's like an IRA for health care
You get a tax deduction put money in it can grow tax-free and it can come out tax-free at any age for a medical expense
Wow
pretty cool
now an HSA is not the flexible spending account where it's a user to lose a plan if you don't use this it grows to
The next year and it's not like an HRA
or health reimbursement arrangement for small business owners where you turn in receipt and you can get
Reimbursed up to ten thousand dollars watch my other video on that
You can have both an HSA and a flexible spending account or an HSA in an HRA
there are all different types of plants but the HSA is the most
universally used plan and I love them again because you get a write-off on the frontpage year return and
You can use them whether you're a small business owner or just a wage earner
Either way, you can take advantage of the HSA now five important issues first. How do you qualify?
Well, you have to have a high deductible health care plan now in 2018. That means your deductible has to be at least
$1,350 if you're single or
$2,700 if you're married filing joint now, some of you may say well, oh my gosh
I like just the simple little copay and I can't have such a high deductible
Folks why the HSA is there is for those of you that are generally healthy anyway
And you're not using the health care plan
and if you have a catastrophic problem you got health insurance to help you but
First think outside the box here if you're generally healthy and you're not even using the health insurance that you've got
That's where the HSA comes into play
maybe you can get a lower premium with a higher deductible and then throw that money in an HSA for a rainy day you get
A tax deduction to do it amazing now again in order to qualify
You have to have the high deductible plan, but don't let that stress you out think big here and think long term number two
What's the deadline here to get that deduction? Well, the deadline is by April 15th for a deduction for the prior year
That's pretty cool. So if you're in the first of the year and
2019 and you still want the write-off for 2018 as long as you have the height?
A plan you can make that contribution by April 15th and still get the write-off for 2018
Well, of course, you can make a contribution anytime now in 2018 and get the write-off as well
number three the deduction the part
I love this is on the front page your tax return and there's no limit based on how much money you make there's no
phase-out or phase in or anything like that if you qualify for an HSA and you make the
Contribution you get the write-off now this year in 2018. The deduction is three thousand four hundred fifty dollars
3450 for singles or
69 hundred dollars for married or head of household woo big right off right off the front page of your tax return
I love it. Number four. It only gets better
Tax-free growth. That's right
You can invest this health savings account and it can grow tax-free and then you can pull out the money for any qualified medical expense
the rest of your life and if you die
Your spouse inherited or your kids or whoever you want to name is the beneficiary and it turns into a basically an IRA
so HSA is amazing for this tax-free growth benefit and
You don't have to wait till you're 59 and a half or whatever either you can start pulling money out for medical any time
Number five it even gets better. You can self-direct your HSA now some you may be thinking what's self-direct
Well, that's the ability to invest your health savings account like an IRA or 401k as well
Invest in what? You know best that doesn't mean always Wall Street products like stocks bonds and mutual funds you can invest in real estate
Notes a small business down the street even cryptocurrency or gold or silver. That's right
You can self direct your HSA
you just have to set up the HSA with a
Custodian that allows for a health savings account pretty cool and they're all over the place people
Anyway, I hope I've exposed you to the basic requirements and benefits of an HSA folks. These are amazing. I love them
I've had one for years and so many of my clients that are trying to save taxes and build wealth
Consider the HSA think about it. I know you'll love it
Thanks so much for watching that video and I want to be your source for tax and legal strategies
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