06.14.2022 - Debt
The Rank Order of Investing and Paying Down Debts
Presented by Greg Geisler, PhD, CPA (Inactive), Indiana University
Surprisingly, the tax savings on many employees’ contributions to a health savings account (HSA) increases wealth by more than a 50% employer match on the same employees’ 401(k) contributions. Join Greg Geisler, PhD, CPA (inactive) for a look at provide the financial planning tools needed to assess HSAs as a wealth maximization option, where available. It also provides the tax-efficient rank ordering that maximizes wealth by comparing contributions to HSAs, Roth and traditional retirement accounts, and 529 accounts, as well as for paying down debts.
Very interesting topic to enhance my knowledge of the use of HSA's to client's financial circumstances.
I didn't know that we could use HSA medical expense reimbursement in the future and not the year you incurred the over counter expense!
All of it was great. Greg did a great job of laying out how/when the HSA contribution is better than getting an employer match on 401k. Slides helped his explanation a lot.
- J. Chris
It was an eye-opener to learn that HSA contributions can be more impactful than 401k matching!
"Learned something that maybe I should have known beforehand:
Folks still pay FICA tax on Pre-tax 401K contributions
HSA contributions are taken out BEFORE FICA tax"