Investing General Discussion

Furry

Furry

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Sounds like Biden's plan to fight inflation is to go after high prices, make sure all corporations pay their fair share, and make sure the fed controls interest rates. Them's some hard hitting policy changes.

Wuuut? I can't wait to hear the brilliant ideas that come out of Biden meeting the fed today.
 
Jysin

Jysin

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The UK government did the same shit here with a "windfall tax" being levied onto oil and gas companies (supposedly to counter record profits). You can damn well be sure those new tax costs will be passed onto the consumer. We truly live in clown world.
 
Sanrith Descartes

Sanrith Descartes

Von Clippowicz
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Jysin said:
The UK government did the same shit here with a "windfall tax" being levied onto oil and gas companies (supposedly to counter record profits). You can damn well be sure those new tax costs will be passed onto the consumer. We truly live in clown world.
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Here? You're a Brit?
 
Locnar

Locnar

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Captain Suave said:
No, and yes, respectively. AGI == "earned income". Any tax-advantaged savings you put aside reduces your pool available for simlar purposes. Alternatively stated, you must have a taxable income at least equal to the total of all 401k/roth/SEP/traditional IRA/HSA/etc. contributions (or at least the income that would have been taxable but for your contributions). Otherwise, you'd be claiming tax credits on more than all of your income in that year.
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I see, I guess I have new work goals then. Earn enough to do all that shit. But you are you sure on the HSA too?? My company contributes money directly into that , and also we can earn more money by completing "tasks" , like going to get a check up or acknowledging we drank 5 glasses of water a day for a week and shit like that. That makes me think HSA are exempt from the earned income requirement?
 
Gravel

Gravel

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HSA is the ultimate savings vehicle. As long as you anticipate one day having medical expenses of some sort, it's the most tax advantageous account type that exists.
 
C

Captain Suave

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Locnar said:
That makes me think HSA are exempt from the earned income requirement?
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No. HSA contributions are made by payroll deduction so they come straight off the top (employer contributions are separate). As far as I know there are no exceptions to needing earned income that you control, at least any that provide a financial advantage.
 
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Sanrith Descartes

Sanrith Descartes

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Gravel said:
HSA is the ultimate savings vehicle. As long as you anticipate one day having medical expenses of some sort, it's the most tax advantageous account type that exists.
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The one downside is that they are not eligible for most everyone.
 
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Captain Suave

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Sanrith Descartes said:
The one downside is that they are not eligible for most everyone.
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Anyone who has the choice should absolutely take HDHP plans with HSAs, though. I've done the math pretty carefully and they're categorically better, across any range of claims, than any PPO/HMO plan I've seen. Other plans are just outsourcing your cash flow management to your insurance company at a premium.
 
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Locnar

Locnar

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Captain Suave said:
No. HSA contributions are made by payroll deduction so they come straight off the top (employer contributions are separate). As far as I know there are no exceptions to needing earned income that you control, at least any that provide a financial advantage.
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But you can make HSA contributions directly yourself and you have up to the tax due date to do so, I maxed my HSA contributions back in February or something, for 2021.

How are they or anyone for that matter going to know if those non-payroll originating HSA contributions came from my bank account, or from "rewards" from doing the little retarded activities my company allows like getting 10,000 steps a day for a month, etc?
 
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Captain Suave

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Locnar said:
How are they or anyone for that matter going to know if those non-payroll originating HSA contributions came from my bank account, or from "rewards" from doing the little retarded activities my company allows like getting 10,000 steps a day for a month, etc?
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Edit: Huh. Well shit. Actually there is no earned income requirement on HSAs. TIL.

How You Can Utilize an HSA Now to Save For Retirement - Ed Slott and Company, LLC

You may be familiar with Health Savings Accounts (HSAs). You probably know that these tax-advantaged accounts can be used to pay for medical expenses. However, you may not be aware that these accounts can be valuable retirement savings tools.
www.irahelp.com www.irahelp.com
 
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Furry

Furry

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Sanrith Descartes said:
The one downside is that they are not eligible for most everyone.
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HSA is nice if it is the default. For me it’s a terrible choice. I can get it, but the health care without it saves me so much money if I get anything at all done that it crushes on the savings the HSA offers on taxes. Literally one doctors visit and I’m in the green. Had to be hospitalized once each of the last two years. It cost me 150$ total. On the HSA plan I’d have been bent over a barrel.
 
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Captain Suave

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Furry said:
HSA is nice if it is the default. For me it’s a terrible choice. I can get it, but the health care without it saves me so much money if I get anything at all done that it crushes on the savings the HSA offers on taxes. Literally one doctors visit and I’m in the green. Had to be hospitalized once each of the last two years. It cost me 150$ total. On the HSA plan I’d have been bent over a barrel.
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I assume that includes the differential in premiums? In any combination of plans my wife and I have ever been offered, the HDHP is superior at any claims level from zero to $50k+, and at the level of $6k a year with no claims. That gap drops to $3500/yr if we had up to the deductible in claims, and then rises again linearly in a big spend year because the coinsurance rates are always better on HDHP plans.
 
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Furry

Furry

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Captain Suave said:
I assume that includes the differential in premiums? In any combination of plans my wife and I have ever been offered, the HDHP is superior at any claims level from zero to $50k+, and at the level of $6k a year with no claims. That gap drops to $3500/yr if we had up to the deductible in claims, and then rises again linearly in a big spend year because the coinsurance rates are always better on HDHP plans.
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My health insurance is 150$ a month. 5k deductible. Things like a cat scan are 100$ oop, surgery with a 3 day hospital stay ran me 650$ oop vs like 100k hospital quote. Most prescription meds are 2-10$. HDHP lost pretty fast over that, especially since I go to the doctor often cause it’s cheap. Not to mention that health insurance covers dental pretty well on top of it.

So you’re mileage may very, someone should always sit down and read through the plan, as every place is different. Not doubting at all that HDHP is the best option for some people.
 
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Sanrith Descartes

Sanrith Descartes

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Me to at all the folks who thought shorting AMZN was a good idea...

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Creslin

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Kicking myself a little for selling into the early morning surge on Amazon but oh well can’t time things perfectly.
 
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