As many of our blog posts do, today’s post originates from a question from one of our readers regarding funding an HSA. The question had to do with the tax treatment of contributions to the HSA and whether said contributions are free from FICA tax. In order to have an HSA the employer/employee must be participating in a high deductible health plan (HDHP). HDHP plans must meet a minimum deductible of $1,300 for single individual plans and $2,600 for family plans. In addition, the maximum contribution for an HSA is $3,350 for an individual plan and $6,750 for a family plan. For those age 55 and older, the plans allow an additional $1,000 catch-up contribution. Generally, employers making contributions to the employees’ HSA avoid paying FICA and FUTA taxes and are also allowed a corresponding tax deduction for providing the employee benefit. Employees making contributions to their own HSA through […]
high deductible health
A Consequence of the Affordable Care Act
As much as I wanted to put the word unintended before consequence in my title, I had a hard time believing that what I’m about to write about was unintended. As many of you are aware, the Affordable Care Act a.k.a. “Obamacare” is the law passed that requires, among other things, that everyone carry health insurance, subject to some specific exclusions. What I want to talk about is how this affected my insurance specifically and likely affected the insurance of many others. Before the Act was passed my family and I enjoyed health insurance through our HSA. A health savings account allows a person or family to have a high deductible health insurance plan while also making tax deductible contributions to an account that can amass funds for medical expenses. Funds from the account that pay for qualified medical expenses are tax free. Self-employed individuals can also deduct their health […]
Sterling Raskie, MSFS, CFP®, ChFC®
The latest in our Owner’s Manual series, A 401(k) Owner’s Manual, was published in January 2020 and is available on 
A Medicare Owner’s Manual, is updated with 2020 facts and figures. This manual is available on 
Social Security for the Suddenly Single can be found on Amazon at 
Sterling’s first book, Lose Weight Save Money, can be 
An IRA Owner’s Manual, 2nd Edition is available for purchase on Amazon. Click the link to choose the 
Jim’s book – A Social Security Owner’s Manual, is now available on Amazon. Click this link for the 
And if you’ve come here to learn about queuing waterfowl, I apologize for the confusion. You may want to discuss your question with Lester, my loyal watchduck and self-proclaimed “advisor’s advisor”.