06-14-07 - 4

There's this new oddity in the tax code for HSA's. As I understand it - if you just have a medical problem and pay for it, that expense is deductible like a normal expense, eg. if you use the standard deduction like I do it does nothing for you. On the other hand, if you first put the money in an HSA and then pay for your medical expense from the HSA, the money is deducted from your income like a 401k deduction - eg. it comes off the top before the deductions, which is way better.

No comments:

old rants