I’m having trouble understanding if this is right for me and I’m not sure if this is the right place to ask but figured I’d try anyway. I always see HSAs recommended but my situation is a little unique and maybe you guys might know a little more.

I’m a sole owner of an LLC. I have employees but I am only looking for health coverage for my family right now. I was told today that you can only contribute to an HSA pre-tax if it’s through a c-corp which we’re not. Also, because this is not a company wide plan there can’t be any company matching.

Is there still any kind of tax advantage to this? Is it still worth it or is a regular health insurance plan better here? How are you guys handling health insurance?

*My wife and I are early 30’s and have a young child.

  • Exotic_Criticism_847@alien.topBEnglish
    1·
    10 months ago

    A little FYI. LLC owner. Been contributing max amount to hsa for the last 8 years for myself and my spouse. Have $75000 in accounts now and will have over 6 figures when I retire to pay for my health insurance in retirement years. Did I mention the tax deduction I take every year? Educate yourself!!!

  • tommyuppercut@alien.topBEnglish
    1·
    10 months ago

    I am under the impression that there is no benefit to a HSA.

    With HSA you find it with pre-tax money, so you end up with a lower tax liability.

    But without HSA you can claim heath expenses (even when taking the standard deduction) which results in a deduction equivalent to the first scenario.

    So really it’s just a matter of building the saving to spend on healthcare versus paying as you go. I prefer to keep my funds liquid and not let the bank make money from hold my money—no HSA.

    Corrections or confirmations are appreciated.

    • beniam4@alien.topOPBEnglish
      1·
      10 months ago

      I’m under the impression to contribute to an HSA pre tax the company must be a c-corp

  • LakeRat@alien.topBEnglish
    1·
    10 months ago

    If you’re on an HSA eligible plan through the marketplace then you can contribute to an HSA up to the maximum annual limit. If you’re contributing directly and not as a payroll deduction through your business then you won’t get the full benefit of deducting your contribution from payroll taxes, but you’ll still get the benefit of deducting it from income taxes at the end of the year.

    This is what I do and in my opinion it’s totally still worth it, as long as an HDHP healthcare plan is a good fit for your family’s healthcare needs.