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.

  • 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.