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Health insurance NOT HSA compatible

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  • jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 6656
    Joined: 01/09/2016

    It depends what you mean by tax-advantaged. Brokerage (“taxable”) accounts are tax-advantaged because qualified dividends and LTCG receive special tax treatment, plus the accounts get stepped up at death. Roth IRAs grow tax-free but are not deductible. 529s grow tax-free if the proceeds are used for qualified education. You can easily get to your annual goal. Your plan will tell you how to allocate among accounts.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #173992 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 3929
    Joined: 05/13/2011

    Have you called a local health insurance broker or are you just looking at the ACA exchange?

     

    Might also want to look at some of the Christian Healthsharing Ministries. Not insurance, but it functions similarly in many respects.

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #173993 Reply
    Hank Hank 
    Moderator
    Status: Attorney
    Posts: 1075
    Joined: 03/27/2017
    Also, are not there a lot of other tax advantaged accounts that I can set up to hit a 20% annual savings rate for retirement.  That comes to $40K per year savings.  The solo 401 K is 18,500 and the back door Roth is 11K for my wife and I.  Any other vehicles to use that I could get up to that 40K mark besides the HSA?

    Click to expand…

    Do you own your own practice, or are you an associate paid on a W-2?  If you own your practice, you can put in $18,500 this year ($19K next year) as an employee, plus use employer matching funds and / or profit sharing to contribute an additional $36,500 for a total of $55K ($56K in 2019).  You would have to make contributions for your employees, but the expense may not be that bad.

    Additionally, you could set up a defined benefit plan at your practice.  The math on this gets a little more complex, but depending on your age, compensation, and time to projected retirement, you may be able to sock away an additional $100-200K per year in qualified funds.

    #174022 Reply
     Flapper 
    Participant
    Status: Dentist
    Posts: 10
    Joined: 12/13/2018

    Thank you Hank. So sorry for the late reply.  I am just now getting used to how quick all of this goes, so thank you!  I do not own my own practice, but I am a contract dentist where my business pays me a reasonable W2 wage and the rest of it is qualified distributions.  I am the only employee.  One day things may change if I buy a practice.  If I do, I may stop funding this solo 401K and open a new one that would be a better fit if I get employees.  I assume I can do this correct?  Of course, I would hope that I could let this older one just keep riding it out and compounding interest on it’s own till my retirement… correct?

    Looks like my extra funds up to the $40,000 will be coming from my employer portion of my 401k… thank you!!!

    #179632 Reply

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