Thank you everyone for your time and bringing fourth good points.
There is a bit of an issue with my ethnicity and the legality of contributing to an HSA while utilizing my regular Doctor. Not that I see her much. Currently Native Americans are not allowed to contribute to their HSA for three months after receiving
medical care from an Indian Health Clinic or Native American Hospital. This could change. H.R. 5452 passed the house . This video is a little over a minute.
https://www.youtube.com/watch?v=Ma_83QPZ4Kw I’ve had insurance which covers all of my medical and dental care so the Indian Clinic has always just billed my insurance... so it’s not like I am freeloading off of the taxpayers. But my concern is I might want to do so if I ever loose my job and need medical care. IHS is like insurance to non-native americans. To know you can get free health and dental care to some degree if needed is very comforting
I took this into consideration when signing up for the HDHP+ Chiropractic Rider. Since my Chiro rider would not be utilized at the Indian Health Clinic and I don’t get sick enough to see a Doctor there, I decided to go ahead with the HSA but my thinking was in error. When my Company said they needed my Bank info, I assumed the premium would be going into my account. To save for healthcare. Or maybe Kaiser would be sending it. I had no clue I would be funding it, my bad. But even after my re-search, i was misunderstanding the basic premisis of an HSA
If HR5452 is passed, then I will be allowed to receive medical treatment from my Native American Health Clinic. When I falsely believed the premiums or part of it went into my HSA, well that made it more attractive.
As someone touched on, HSA’s will still be taxed by the State of California at 8% but I will save will save regarding the Federal Tax.
I only make $30,000 ma year so I arrived into a 15% Fed tax bracket. My Ebay and Amazon Sales have been unreported so far, another $7000 per year. I do these online stores while on the clock at my regular job. My employer is fine with it since I do more than the majority of the other Supervisors. Many of My clients want to go thrift store shopping so when I see them, I take them.
After our 175,000 inheritance goes thru, and if HR 5452 passes which allows Native Americans to save for their Healthcare via HSA’s, well that might make contributing to a HSA alot more appealing. I am still re-searching it though. Our inheritance is a gift and it will not taxed in California or by the Feds from what I understand so won't be pushed into another tax bracket.
On another note, the Health Savings Act of 2016 would allow about double the amount allowed by IRS to be contributed to an HSA, if it goes thru. It's unlikely Obama would sign that bill imho
.