HSAs Target Wealth to the Middle Class and Poor
Tax-free HSAs turn high health insurance premiums and taxes into assets for employees. Let’s look at a middle class couple and how they prosper with Obamacare Replacement. Let’s assume the wife is a teacher at Ames, Iowa High School earning $50,000 a year and the husband works for 21st Century Iowa Trucking earning an additional $50,000 a year. This couple is 30-years-old with 2 children and they are paying $742 a month to have the family added to the School’s health insurance program. Now let’s look into the future and see the Big TIME difference with TrumpCare and watch their prosperity GROW!
We will assume that the Ames School District is slow to embrace change and is STUCK in their small world and continues to be STUCK in the pea-picking past but the husband has SOLD his employer and has given his employer an HSA baptism. The wife continues to get her health insurance from the School District but the rest of the family takes the age-based tax credits from President Trump and purchases HSA Qualifying personal, portable and permanent Individual Medical (IM) insurance with as low as deductible as possible with their $6,500 refundable tax credits. 21st Century Iowa Trucking is quick to adapt to TrumpCare and decides to maximize their employees’ tax-free HSAs.
When the trucking company puts a dollar in a paycheck for the employee they pay Payroll Tax and Workers Comp. When they put $13,100 into the employee’s tax-free HSA, abracadabra, no taxes! The trucking company saves 17.65% on this HSA deposit or $2,312. The employee earns these funds tax-free and saves $5,621 (Federal Income Tax 25%, Payroll Tax 7.65%, Iowa Income Tax 8.98% & Ames School Tax 14.35 of State Income Tax). Together, the employer and employee save $7,933 on the HSA deposit! It’s smart when employees and employers ban together and cut the IRS out! Tax-free HSAs are compensation without taxation. Who would the employer rather give their money to, their own employee or the IRS? If the employee is your son this is an IQ test.
The tax-free HSA is BIG TIME. In another 5 years there will be more HSAs than old boring taxed IRAs in America. Because I enrolled the USA’s 1st HSA you could say I really started something. In Ames, my home town, they are bureaucratic, void of common sense; they will be late adapters to TrumpCare. But small employers will embrace change and be early adapters because it is to their benefit.
This 30-year-old couple can watch their tax-free HSA balance grow. HSAs enjoy tax-free deposits, growth and withdrawals – AMEN! Money that is never taxed will last longer in retirement. If this couple maximizes their deposits at 65-years old they will have $3,905,461.15 at 10% growth. Remember, 65-years-old is young with a 21st Century lifespan. At 75-years-old this couple will have $10,359,418.70 with 10% growth. Here is an HSA future balance calculator for you:
Can you get 10% growth on your HSA balance? Here in the big city of Tampa Bay I have a friend that says there are a couple of ways to have a larger balance at 65-years-old. First, because she is 25-years-old she says you can start younger than 30-years-old. OK, that’s smart. Secondly, she teaches people how to grow your tax-free HSA balance using real estate. These kids are smart today! It’s TIME for your HSA.