HSA's as investment accounts

[whacked1]

A small hack for HSA accounts; if you have your employer withhold the money, you’ll save on FICA tax as well, which can potentially translate to an additional 7.65% saving.

How do i get my employer to withhold? Where would that money be deposited?

[AJK]

How do i get my employer to withhold? Where would that money be deposited?

...in the HSA.

[Yo ssi]

(which can be invested at 8-10% historical returns)

Where you doing that?

[AJK]

Where you doing that?

The stock market?

[Help]

Be sure to hire a pensions actuary to help you quantify the estimated reduction to your future social security benefit.

A huge part of tax planning for a business is to reduce the pesky SE tax.

I’ve NEVER heard someone say they’d rather pay it to perhaps get more SS benefit.

[farmbochur]

As if.

I'd rather the 7.65% in my pocket (which can be invested at 8-10% historical returns) than have that money in the govt's pocket for a social security benefit that may or may not be around when I retire. It has for two years already been paying more benefits than it's collecting. No, thanks.

A huge part of tax planning for a business is to reduce the pesky SE tax.

I’ve NEVER heard someone say they’d rather pay it to perhaps get more SS benefit.

Indeed. I must've forgotten to turn on my sarcasm font.

That being said, there are unique circumstances where opting into FICA taxes can offer a compelling ROI.

https://www.kitces.com/blog/social-security-fica-self-employment-taxes-return-on-investment-roi-irr/

[whacked1]

...in the HSA.

Thanks. Reached out to my "HR" guy, who reached out to our payroll company. Got it setup!

[Essen est zich]

Got it setup!

Can you explain a bit more what you did? (im a bit lost).

[whacked1]

Can you explain a bit more what you did? (im a bit lost).

opened an hsa account online (i did fidelity as all my other accounts are there already). Got a form from payroll company with info such as routing , account etc. Filled it. Done. (Make your selection online how you want it to invest)

[incendia]

opened an hsa account online (i did fidelity as all my other accounts are there already). Got a form from payroll company with info such as routing , account etc. Filled it. Done. (Make your selection online how you want it to invest)

Can you confirm via paystubs that you are saving on fica taxes? Was your withholding for income tax effected?

Is it affecting your 401k contribution/ match?

[whacked1]

Can you confirm via paystubs that you are saving on fica taxes? Was your withholding for income tax effected?

First payroll would be tomorrow. i'll check then

Is it affecting your 401k contribution/ match?

Lol. I work in a heimish company. No matching for me.

[ExGingi]

Can you confirm via paystubs that you are saving on fica taxes? Was your withholding for income tax effected?

It needs to be set up properly with a Cafeteria Plan. Alternatively, the employer can contribute (but they probably can't discriminate).