Jump to content

Pre-tax or Post-Tax Contributions to an HSA?


Guest m3Rheino

Recommended Posts

Guest m3Rheino

I am wanting to contribute to an HSA using pre-tax dollars with no employer contributions/connections whatsoever (personal HSA plan). Is this possible? Thank you for your help in this matter.

Link to comment
Share on other sites

g8tr:

Please explain how this is done. I think the answer may depend on how you define "pre-tax." In most benefit contexts, "pre-tax" is associated with salary reductions and does not include what happens on a personal income tax return. Also, since cafeteria plan salary reductions also reduce FICA wages, one may wish to distinguish "pre-tax" for income tax purposes and for FICA purposes. The question cuts out the employer, so the traditional associations with "pre-tax" under a cafeteria plan do not apply.

Link to comment
Share on other sites

If you have amounts direct deposited from your paycheck to your HSA, without running through a plan sponsored by employer (ie, a cafeteria plan), you will be taxed on that income for federal income and FICA tax purposes. You will be able to deduct the contributions on your federal income tax return when you file it in 2006. There is no way to capture any FICA tax savings.

If you contribute to an HSA by payroll deduction through your employer's cafeterial plan, you reduce the federal income tax withholding (accelerating the timing of the tax savings) and reduce for FICA tax withholding (permanent tax savings although potentially reducing your net SS benefit)

Link to comment
Share on other sites

JD is correct, you take the deduction off on your tax return. However, not all state's allow this deduction. If you do not know if your state allows this deduction, and do not know how to research, look on the tax return and see if there is a line for HSA deduction.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...