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.

  • 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.