Madison MoneySports - Personal Finance Thread

[Kaan]

we look at our HSA as a long term investment. yes we use it from time to time... but I increased my pre tax contributions and the "plan" is to keep it growing the best we can into retirement.

This.   IMO the HSA is best thought of as a health 401k.    You get to put in pre-tax dollars, and can make additional payments into it up to a an annual cap.   If we were on a HDHP I would be contributing the max into it to keep my taxable income as low as possible.

Which as a side note about HSA's. Does the yearly contribution limit INCLUDE any employer contributions. I scaled back my paycheck contribution because I realized for the full year I would over contribute if my employers contribution counts towards it.

yes is the internet answer, your employers contribution counts toward the cap. BUT I, like you, have contributed the "maximum" and my employer matched... so I'm not sure how that all worked out

My rule is, always reduce your taxable income as much as you can... it reduces the yearly sting. Take your "spare" investment post tax dollars and toss it at the Roth... because taxes always go up, so you might as well have some "tax free" dollars somewhere.