Hi!

Our clients constantly ask for ways to reduce their taxable income – here is one that few people know & that can lead to a $4k to 9k tax deduction! 💵

• Deduction Limits:
  • $4,150 for individuals
  • $8,300 for families
  • + $1,000 catch-up if you’re 55+

Here is how it works:

• Your HSA can behave as a “de facto” 401k
• Your simply max out your qualifying* HSA plan
• This can create an additional $4,300 or more reduction to your taxable income 🌱
• This can be invested in stocks, bonds, etc.. just like a 401k!
• After age 65, withdrawals are allowed for any reason, not just medical.

Why does this work?

• These contributions are 100% tax-deductible, reducing your taxable income just like a 401(k) or IRA contribution.
• Most HSA providers allow you to buy mutual funds, ETFs, or individual stocks once you reach a small balance threshold (usually $1,000).
• If you use the money for medical reasons, great. If unused, the funds grow tax-deferred. You can use them in later years for medical expenses, or, just wait until after age 65 and voila: you have another “stealth” 401k!

Who qualifies?

✅ W-2 employees with an HSA-eligible HDHP – just ask HR if you qualify. ✅ Self-employed individuals – as long as your health plan is HSA-compatible.

✅ Other cases may qualify – reply and we can send a breakdown

How to Get Started Now

It is not too late to get this deduction for 2024! This can be done as long as you contribute before April 15th.

However, since it may take time to process with your employer & HSA provider, please get started immediately.

Also, your accountant will need to know this, and many accountants are already full.. reply to this email to check availability if you need us!

Steps below:

🔹 Step 1: Check if your health plan is HSA-eligible (ask HR or your benefits provider). 🔹 Step 2: Max out the annual deduction limit before April 15th

🔹 Step 3: Choose your investments in the HSA just like a regular 401k 🔹 Step 4: If possible, pay medical expenses out of pocket and let your HSA funds grow.

Questions? Please feel free to reply back and we can provide a quick answer or go over scheduling & availability options.

That said, due to peak tax season, please let us know by this Friday since we are in the final weeks to the deadline.

—

George Dimov CPA

www.dimovtax.com

(833) 829-1120 toll free