I am really struggling to get this whole HSA question answered to where I understand it (maybe its just me). My wife set up a HSA couple years back and while i am working through all the MMM stuff getting things more efficient I have seen people say to max out your HSA as it reduces your Gross Tax. So I asked my accountant and he said that we can deduct 6550$ a year off the top (GW). Figure a combined income of 250+ not including investment income, and family of 6.( Myself, Wife and 4 kids). My wife doesn't really know the answers of this either though setting up the plan (arghh).
I guess what I am wondering is if the 6550$ is right. Does it make sense to add more to it even if we only can reduce the Gross Wage by the 6550 since our deductible is 10k. How does it work in laymans terms. Does it make sense if money left over to build it up yoy.
Other than 401k based on our Salarys are there any other Tax deferred or ? That people feel are musts.
Thanks in advance and if you have anymore questions I will answer them.
State of WI.
Also I am in 50th year and in ER but receiving payroll check since its my company and my wife is working 20-25 hrs a week receiving paycheck so were maxing out the 401k plus my accelerated since my 50th year. 3.5 years and my wife will be done too! at least thats the plan.
[MOD EDIT: All caps title changed to not scream at me. /END EDIT.]