It's open enrollment, and I want to check in about the HSA to make sure I'm thinking of this correctly.
The deets:
1) I can do an HSA at work, while DH does not have that option through his.
2) For me single, it's $0 out of pocket for me, plus work provides $500 to the fund (one-time, not monthly).
3) With DH on my HSA, it's about $200/mo premium...$2400 annual.
4) If he insures himself through his work's plan, it is a bit over $100/mo. ($200/mo if he adds me which is the worst of all options so that's not on the table.)
Since we are in the 15% tax bracket after 401k deductions, at first glance it seems like it's a bit of an iffy benefit to put DH on mine:
Both of us on HSA: $2400 out of pocket costs, tax advantage of ~$930 ($6750 max contributions, minus $500 work puts in, so $6250 times 15%).
The earnings 6% or so, on $6750, are $405.
$405+$930=$1335 minus the additional premium over his health care option=$1335-1200=$135
Just me on the HSA:
Premiums are $0. Tax savings is $3350 minus $500, so $2850*.15= $427.50 total.
Earnings of 6%on $3350=$201
Total=$427.50+$201=$627.50
The additional $500 is the same either way (ei not $1000 if I add him).
If the earnings are substantially less than 6%, the benefit is totally wiped. OTOH, compound interest. We are in early 40s, expecting to FIRE maybe 2020ish? It's a very tough call to make to say what the health care situation in the US will look like at that point, or the tax situation. So, kind of uncertain if the premium cost will be worth the potential savings. Anyway, I need to have a strong argument to present to him because he is inclined to look just at the shorter term picture and not the longer one. Thoughts or advice welcome!