The Money Mustache Community

General Discussion => Welcome and General Discussion => Topic started by: LearningMustachian72 on March 01, 2022, 12:00:58 PM

Title: HRA vs HSA (Baby on the way)
Post by: LearningMustachian72 on March 01, 2022, 12:00:58 PM

I am expecting my first child in the fall and will then decide between my healthcare plan (high deductible w/ HSA) and my wife’s (HRA).

High Deductible w/ HSA
- deductible: $3,300
- out of pocket max: $5,000
- Annual cost: $4,980
- Annual HSA contribution:$7,300

HRA
- Deductible: $1,000
- Employer provided credit: $2,000
- Out of pocket max: $1,000
- Annual cost: $6,420
* $2,000 employer credit rolls over if unused but I expect to use every year

Seems like HRA is the wise move but want to consider the long term benefits of the HSA growth potential.

Thoughts?

Title: Re: HRA vs HSA (Baby on the way)
Post by: BiggerFishToFI on March 03, 2022, 10:24:48 AM

Maybe depends on your tax bracket?

How much money is an additional $7,300 socked away in a tax advantaged account going to save you in taxes?

Also, here's a good article about the benefits of HSAs:

https://www.madfientist.com/ultimate-retirement-account/