HSA Tax Question

[Roboturner]

Just got a health plan that has a HSA. How do they work for taxes? Is it a tax-deduction off income or a tax-credit? Is there any reason I should max HSA BEFORE T-IRA, or are they handled essentially the same?

Thanks in advance!

[RWD]

I believe it is a tax deduction and is also exempt from FICA taxes. State taxes might vary. You could view it as a better Traditional IRA so in most circumstances you would max it first.

See also:
http://www.madfientist.com/ultimate-retirement-account/

[Roboturner]

sounds great, would it be exempt from Self-employment tax then?!

[Roboturner]

"Contributions you make to a health savings account (HSA) are also deductible "above-the-line." An HSA is a tax-exempt trust or custodial account you can establish in conjunction with a high-deductible health plan to set aside funds for health-care expenses."

-https://www.ameriprise.com/research-market-insights/tax-center/tax-planning/self-employment-tax/

Never-mind, Google is a wonderful thing