iLoveKevin(:
New member
My company's annual enrollment period is opening up again in a couple weeks and I am trying to decide if I should switch from a traditional PPO to HSA plan? I have done some research on HSA's but I'm not sure if they are a good option for me right now, and if I will save a lot of money. I understand most of the benefits, tax advantages and things like that. But I am a little worried about the high deductible, it seems like if I do get sick I will lose all the money I am trying to save... I am 23 years old, in good health and rarely visit the doctor.
I currently pay 60/month for a pretty good Kaiser plan, and my employer covers 270/month for a total of 330/month. If I elect an HSA, my employer will contribute 500/yr and I can contribute up to another 2,500. My HDHP will be 44/month and the HSA account will cost 4/month. My deductible will be 3500 dollars, and after that I am covered 100%.
So from some basic calculations, with my current PPO plan, I pay 720/year. With the HSA, I would pay 48 + 528 for a total of 576/year. So just on the plan I save only 144/year. But I did some calculations to try and figure out how much it will save me on taxes. If I contribute 2500 on a pre-tax basis this will also be deducted from my taxes right? Any suggestions/ideas??? Thanks
I currently pay 60/month for a pretty good Kaiser plan, and my employer covers 270/month for a total of 330/month. If I elect an HSA, my employer will contribute 500/yr and I can contribute up to another 2,500. My HDHP will be 44/month and the HSA account will cost 4/month. My deductible will be 3500 dollars, and after that I am covered 100%.
So from some basic calculations, with my current PPO plan, I pay 720/year. With the HSA, I would pay 48 + 528 for a total of 576/year. So just on the plan I save only 144/year. But I did some calculations to try and figure out how much it will save me on taxes. If I contribute 2500 on a pre-tax basis this will also be deducted from my taxes right? Any suggestions/ideas??? Thanks