Is it necessary to contribute to an HSA if you’re already doing backdoor Roth IRA for tax free gains?

like
Posting as :
works at
You are currently posting as works at

Serves a different purpose. The tax savings are more significant in an HSA because they go in pre-tax, grow tax free, withdrawal tax-free. However, you’re limited to medical expenses. If you have the resources to contribute, I think it’s a great idea

like

Withdrawals for non-medical expenses are taxed, regardless of age. The additional 20% tax is waived if you are 65.

Keep in mind after age 65, HSA funds can be used for non medical expenses without penalty so at that age it's basically like having a traditional IRA

likehelpful

Thank you Accenture 1. That’s a huge difference

roth isn't triple tax advantaged.

“Necessary” is to me a strange choice of words. It is one of, perhaps is, the best tax savings vehicles. If you have one available to you and have the means to contribute to it - and expect to have medical expenses at any time in your life - then there’s no downside and only upside.

Related Posts

I'm moving back to blighty, want to be commutable to London. Need a family home, yard for dog, etc, where would you go if you could? Max £400k for a house, good schools. I used to live in the southeast but priced out and feeling overwhelmed with narrowing down. Thanks!

like

Is it worth getting SPG LUXURY when you already have the SPG Amex?

like

Hey 🐠, crowdsourcing opinions: what are your thoughts on housing prices in Toronto. Im looking to invest and was thinking of a detached home around $1M in the city. You all think its better to wait another quarter or so before pulling the trigger?

like

How do taxes work for a property that was bought for 75k and selling for 270k. Bought about 20 years ago.

like

Southwest Airlines stock - yay or nay?

like

Looking for advice. Am considering a somewhat complex investment (fund of hedge fund).

Am comfortable with the investment strategy and logic etc, but less equipped on assessing if red flags in the structure of the investment itself (eg its in a llc).

Wondering if any1 has come across service providers / lawyers who may be able to do a quick operational due diligence (for a small fee) of the legal docs to ensure nothing too non standard? Not looking for advice on the fund strategy.

like

I’m a newbie with investing...basically know nothing and wanted to ask. What sort of research do you guys do before investing in stocks? Any books you recommend? Only thing I have is index funds with VBAL so far on a friend’s recommendation. Thanks!

like

How do you decide when to sell an asset? So many times I sold and then boom 🚀🚀🚀

like

This is really old but my spend amount has been 0 since the merger and hasn’t updated. Anyone else experience this?

like

Do I need to do anything to renew my priority pass membership that comes with my Chase Sapphire Reserve? Expires at end of Feb

likefunny

Can I collect and sign up for multiple delta Amex cards? Need to get points for honeymoon flights

like

Buying a house for ~900K in one of the Boston suburbs - my household income is ~230K. Am I stretching too far?

like

Every day there’s someone doubling or tripling some random stock.... I’m not hating, i hope you don’t lose those gains; but dang this has to be a bubble

like

Stock market: 20K points - yes or no? When?

like

Has there been a time where you had a hard time selling a property? If so what made it hard to sell and how did you finally sell it?

like

Top ICOs I’m researching - Crypterium, Bluezelle, Coinvest, Sether, Vice - thoughts? Any other?

like

Has anyone successfully refinanced a non-US student loan (e.g. from Prodigy Finance) in the US? Which company did you use?

Base office in NYC, but been living in Texas for the past couple of months and might stay here for the next few months (since wfh is the default in my firm now) - can I get away from paying NY income taxes?

like

Hi Fishes,

I have received an offer from PwC india.

The joining bonus is 1 lakh, which will be credited in the first month.

My question is how much tax is deducted on jb?

Can I get a refund if I do proper tax planning while filing ITR?

Or, it is treated differently and I won't get a refund??

Pls help as it will decide whether to accept the offer or not?

Thank you🙏🏾

like

More Posts

Does anyone know of a job where my husband can apply? He has been in customer service for years, but he can’t find a job for 6 months now. Any remote position or somewhere in SoCal/IE works for him. Thank you so much.

like

For those already working in startup environments, what are some creative benefits offered to you in the USA that you feel really move the needle outside of healthcare benefits?

like

Hi, any reference for finance and accounting opening in any industry for mohali location
I am having more than 9 YOE.

like

For those who were diagnosed as an adult can you provide some insight into how you were able to obtain a diagnosis. I went to my primary care dr who referred me to another dr who specialized in mental health. He asked me about 5 questions before telling me I should see a neuropsychologist for an official assessment. The referral he gave me is super pricey and apparently isn’t covered by insurance. Is that normal?

likehelpful

Is it really better to give than to receive? I’m usually thoughtful and give gifts and I frequently get asked for money borrowed, but I’d like to think that people consider and appreciate me too. I don’t really ask people for stuff and or expect too much, but I’ve been paying attention since I got married and hardly anyone got me gifts on my registry. One of them even sent me her registry shortly after. I decided to not get anything to see how she responded and she hasn’t reached out since.

like

Recent grad, recently maxxed out my Roth IRA. My employer matches first $2,000 100% for 401K and 50% match on the next $1,000. Recently hit that $3,000, my company offers a super Roth strategy (mega backdoor Roth), with the ability to automatically convert each contribution to said Roth. Any suggestions would be much appreciated on whether I should begin with this strategy, or max out the unmatched portion of my 401K first? (Ideally I’d hope to do both) Thanks?

like

Best wealth/net worth tracking app for people with accounts in both US and UK?

like

Hello Everyone my name is Cerena Brown. I’m a makeup artist, soon to be licensed cosmetologist and content creator. I’m also currently in the process of launching a body butter and lipstick line but I’m looking for great business advice. I would love to network with everyone here and looking forward to great things.

like

Hi Fishes,

I will be shifting to Bangalore in May last week.

I am a fresher (22 Male), anyone around the same age willing to share an apartment in Bellandur near the Adarsh Palm Retreat IT park?

DM me.

like

Anyone else required to put together completely unrealistic timelines?

Upper management's direction is to put together the most aggressive deadlines we can. If we think a project will take 16 months, make the plan for 10 months then there's a chance we may launch in 13 months.

I understand that time to market is important in consumer product goods, but being constantly behind schedule and rushing everything is terrible for the team's morale.

like

What do you do when you need a sub? What kinds of plans work best for subs in the Spanish classroom? I have needed subs lately and have found it hard to plan lessons that aren’t just busy work.

Anybody hiring for data analytics positions? I just need a first round interview. I am a decent candidate, my last 5 interviews were EY, McK, EY, McK and GS (last round, 1st round, last round, 2nd round, 1st round). I have 10 months of experience and graduated with majors in cs and bus. I interned once at a big 4 acc firm and once as a software engineer.
1 caveat: I am an F1 student on OPT.

Brooklyn or Queens to live in? Or any specific neighborhoods you would recommend for easy access to Asian groceries?

like

Any good, reasonably priced tailors in Jersey City?

like

Friends and I are hanging out tonight and decided we'd use the hangout to celebrate a friends birthday + graduation. Would it be weird for me to openly invite people that my friend isn't really close to (i.e., not passing it by them before inviting)?

Asking here because I feel that consultants are generally pretty rational/logical people.

like

Need refferal for sap ewm

like

I had declined a job offer from Accenture 2 years back. Now there is opening I am trying to apply but it shows in my profile that my application is closed and need to contact my talent coach. I have no idea who that is. What can I do?

like

Hi Guys,

Has anyone absconded any company before ? How was your experience?
Did you face any consequences?
What happened to your PF ?
Do you need to pay anything to the company if you joined 3 months back ?

like

Anyone here have emotionally unavailable parents? How do you cope?

like

Additional Posts in Personal Investment Chatter

Guys, I need to support my family with around 10k. I have around 80k in brokerage account. And I make around the same in annual gross income. No debt. Can I sell the stocks to take out that money or should I take out debt?

like

Has anyone here successfully fought off a NYS residency audit when changing your state of residency? Hoping to relocate to FL to take advantage of no capital gains.

like

With Pfizer covid authorization is expected soon, why is price not moving much? However, Moderna gained 100% in last month. Don't understand the reasoning 🤔

likehelpful

What’s your favorite credit card? Why?

like

How are you spending or investing your stimulus checks?

like

Any companies trading under $30 you believe would increase their share price by 3x or 4x the next 5 years? and why?

Go!

funnylike

For those of you with a 529 for your kid(s), how did you go about opening one? Do you use the 529 designated for your state?

like

Does anyone utilize the personalized planning and advice (PPA) service from fidelity? I used a managed care service at vanguard and it was helpful and I saw huge benefits in return and when my employer switched us over to fidelity this year, I signed up for the same “managed care” service called PPA and this year so far I’ve lost $. I don’t know if this is normal but shouldn’t a managed care service be taking care of me and bringing me returns on investments instead of losing my money?

like

should I only buy mutual fund in tax-deferred account and then ETF in individual account? Seem like mutual fund has much more taxable capital distribution.

like

To anyone using Charles Schwab? Are you able to buy fractional shares of etfs? It seems like its only for individual stocks?

like

I would love to know about investing. What books or materials would you guys recommend? I want to understand the benefit of contributing to my 401(k) and ways that I can make money. I just don’t know where to start.

like

Better to buy $30k car in cash or finance @ ~3.29%?

likehelpful

How does CD interest work for Marcus?

Suppose I drop $100K in a 12 month CD at 4%. The $100K is locked up for 12 months. When does interest accrue, and when can I withdraw it?

My suspicion is it either accrues monthly with immediate withdrawal access, or all only becomes available for withdrawal after 12 months.

like

If I’m employed by 2+ companies this year, how is it ensured that I don’t exceed the 401k contribution max? I’m not planning to exceed, just curious. I’m doing Roth so no reduction of taxable income

like

Realized today my husband and I tripped over a million in net worth. I know that may not seem like much to some but we came from two immigrant families (with no parental college degrees on one side).

likeupliftinghelpful

Campus hire. New to investing/retirement savings. I know it’s important to “max out my 401(k)” so I selected my pre-tax 401k contribution to the % that my employer matches to on my account. Is that al

like

I wish I brought more shares of $WKHS last week

like

I have an HSA I haven’t maxed out and am switching to a new employer in 2 wks with whom I’ll be signing up for a non-HSA healthcare plan. Can I still max out my HSA for the year?

like