If you're self-employed and want to contribute to HSA, can do you do so pre-tax or are you stuck paying after taxes? Just started my own business as a sole proprietor and wondering if I should LLC and run payroll on myself...
You should be able to have an HSA if you're self-employed AND have a high-deductible health plan. You can find more here, but it looks like the contributions have to be made in cash: www.irs.gov/publications/p969
Thank you Katie for this awesome advice, I had 1099 income in 2022 and did not know about a SEP IRA, so I just opened one and funded what I could with my little side hustle income but still anything helps :)
@Katie, if I fund a SEP through any of those investment platforms, i.e. Betterment, do I have to give my CPA a proof of transactions when my CPA starts to process my tax bill OR fill out some kind of a form for the IRS? Or is it as simple as just saying how much I put into SEP and that’s that? Sorry for rookie questions. Its my second year paying taxes and last year the amount I owed was devastating to me.
I also had just started an HSA with my employer but was no where near close to maxing it out, and I didn't want to fund it with post tax dollars but am now considering doing it this year and then making sure next year to max it out through pretax income.
This was a great reminder and refresher!!! Plus I did learn to open a 401k b4 the end of the year! Very good precise information.
Minute marker 8 is literally me. Thank you!
LOL, I'm glad you found this useful!
If you're self-employed and want to contribute to HSA, can do you do so pre-tax or are you stuck paying after taxes? Just started my own business as a sole proprietor and wondering if I should LLC and run payroll on myself...
You should be able to have an HSA if you're self-employed AND have a high-deductible health plan. You can find more here, but it looks like the contributions have to be made in cash: www.irs.gov/publications/p969
Thank you Katie for this awesome advice, I had 1099 income in 2022 and did not know about a SEP IRA, so I just opened one and funded what I could with my little side hustle
income but still anything helps :)
Everything adds up -- congratulations on opening one, and thank you for the kind words! You got this!
Savannah, what platform did you go with?
@Katie, if I fund a SEP through any of those investment platforms, i.e. Betterment, do I have to give my CPA a proof of transactions when my CPA starts to process my tax bill OR fill out some kind of a form for the IRS? Or is it as simple as just saying how much I put into SEP and that’s that?
Sorry for rookie questions. Its my second year paying taxes and last year the amount I owed was devastating to me.
Thank you, good video
Thank you!
I also had just started an HSA with my employer but was no where near close to maxing it out, and I didn't want to fund it with post tax dollars but am now considering doing it this year and then making sure next year to max it out through pretax income.
Yes! It's honestly a GOAT that not many people know about. I'm glad the video helped explain!