HSA

[texastumbleweed]

Can anyone tell me in super basic terms what a HSA is or if I even need one?

We are self-employed, three kids, pay out of pocket for our health insurance and earn between 50-100k a year.  This year we should have just enough after expenses to max out our 401k and build an emergency fund but not much else.  I have no idea how HSAs work and the website made my eyes glaze over. 

Thanks!

[MDM]

I have no idea how HSAs work and the website made my eyes glaze over. 

Which website?  Health savings account - Bogleheads or something else?

[seattlecyclone]

An HSA is a tax-advantaged account where you can save for health care expenses. With retirement accounts you have to choose whether you pay tax going in (Roth) or coming out (traditional). The HSA is tax-free both ways. This fact makes it a very attractive place to stash cash, even better than a 401(k).

You can only contribute to an HSA if your health insurance is a High Deductible Health Plan (must use those exact words). When shopping for insurance next year, take a look at the HDHP options to see if they might be cheaper than your current coverage after you consider the tax benefits of running the out-of-pocket expenses through the HSA.

[Luckyvik]

Look at the Mad Fientist website for a good explanation of HSA's


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[texastumbleweed]

Update:

I have a "pto" account so i can't get a HSA and I can't pay with credit card either to get the points....  We pay $463 a month for 2 adults,3 kids...

[MDM]

I have a "pto" account so i can't get a HSA....

No idea what a pto account is, but see http://www.hdhp.org/hdhp/hdhps-as-self-employed-health-insurance/, links therein, and similar sites from googling
self employed hdhp
for options you might choose later this year for 2017.