[59강 HSA] HSA (Health Savings Account): IRA와 Roth IRA의 장점만을 합친, 누구나 가입할 수 있는 가장 좋은 은퇴연금상품 - YouTube

Hello, It's John Cheung.

Today, we're going to talk about HSA and health savings accounts.

You know a lot about IRA. It's called the Individual Retirement Account, and there's also Roth IRA.

Both are created by the state to encourage individuals to prepare well for retirement.

It provides tax benefits for this.

For example, a regular Roth IRA can be paid up to $6,000 a year or up to $7,000 depending on age,

in which case the payment is a tax credit.

This means that for the amount paid this year, tax deductions will be given to reduce taxable income.

And, this money will continue to increase without paying taxes during the invested period.

Instead, it's later, after retirement.

If you find this amount after the age of 59.5, you will pay taxes then.

Meanwhile, Roth IRA does not allow tax deductions when you pay,

, but during the period when this paid amount increases through investment, you don't pay taxes on the investment income.

There is an advantage of not paying taxes even when looking for it later.

In the end, if you look at these two things, is there a tax deduction when paying?

And is there a tax deduction for taxes that increase when income increases during this investment period?

And when I look for this later, will it be tax-deductible? We can see from three perspectives.

whether it's a Traditional IRA or Roth IRA, it doesn't meet all three.

Each meets only two things,

and most of the other investment products are the same.

Except for one.

As you can expect, this is HSA, the topic of today.

In other words, if you create an HSA and invest through this account,

it will be tax-deductible when you pay for the investment,

and this income will be tax-free when you increase your income during the investment period and

tax-free when you withdraw it.

Then let's take a look at what HSA is.

To this end, let's first take a look at the expenditures we incur in relation to medical expenses.

There are a number of medical expenses that we incur in our daily lives.

There will be various medical expenses such as medical insurance expenses, Copay when you go to the hospital, Deductible,

and Prescription.

So how can we deduct these costs from our income? There are four ways in a big way.

There are four ways in a big way.

The first is that the company pays for it.

There must be a plan like this, such as corporate medical insurance, for any benefit of the company.

Of course, it's the best. However, this case is not always expected,

and even so, it is rare for the company to pay all other medical expenses.

You can think of the following situations.

Second, itemized deductions. There's something called itemized deductions.

If the total amount of medical expenses I spend is

more than 7.5% of the net income I earned that year,

I can deduct the excess amount in the name of an item deduction in my personal income tax return.

So to speak, if I'm a person who earns $100,000,

I'll only be deducted from the amount that's generated more than $7,500.

In the end, if this is the case, it will not be applicable unless you spend a very large amount of medical expenses,

so it will not always be a benefit that can be used.

And the disadvantage of not being able to deduct up to the initial 7,500 dollars should also be taken into account.

Next, the third is called the Flexible Spending Account, FSA.

This is an account related to medical expenses that the company opens for employees,

and employees can put up to $2,750 per individual every year.

And you can use this account to pay for various medical expenses you incur.

And since the amount that goes in here is the amount that goes from your salary to Pre-tax,

you can see the effect of subtracting from taxable income.

But the problem is... In the case of this FSA,

use it or lose it,

that is, there is a disadvantage that it disappears if you don't spend all the money by the end of the year.

That's why not many people use it.

And the fourth one. The topic I'm talking about today is HSA, Health Saving Account.

The advantage is that first, the amount paid to this account is deducted unconditionally.

Whether my income is high or low,

the amount paid to HSA is deducted up to $7200 per year for my family.

And the second advantage is that whether I'm a small business owner, a business owner, or a salary worker working for a company,

there are no restrictions on HSA payment and operation.

Third, I can decide entirely how to invest in the amount of HSA that I put in here.

You can put it in the bank or you can put it in the broker's account and use it for investment it for your investment.

Of course, the income will increase with Tax-Free.

Fourth, you can find and use it without taxes at any time as long as it is used for medical purposes.

And about the fifth one, There's one condition that you have to keep.

you need to be subscribed to the health insurance that supports HSA. This is called the High Deductible Health Plan.

Each insurance company mentions whether the insurance product is eligible to support HSA,

so it won't be difficult to find it.

And surprisingly, just because it's a High Deductible Plan, it doesn't necessarily mean that a higher deductible is applied.

So I hope you keep in mind that HSA support insurance does not refer to insurance that is lower than those that are not.

Then let's compare IRA, Roth IRA, and HSA once again.

The IRA is deducted from the deposit tax, and this money increases without paying taxes,

and later at 59.5 years old, when I find it after retirement, I pay taxes then.

Roth IRA does not deduct taxes on deposits,

but does not incur taxes on the amount increased by investing,

and does not pay taxes even when looking for them after the age of 59.5.

On the other hand, HSA is not taxed on increasing or deducting payments,

and does not pay taxes on being withdrawn later as long as it is used for medical expenses.

When it comes to income tax, it can be seen as a complete tax deduction product.

In addition, there is no such restriction that a certain amount must be found from the age of 70.5 required by the IRA.

Then how do you use this HSA account?

First, it can be used as a long-term investment product.

What I'm talking about is that this HSA account is used for investment without continuing to be taken out,

which means that it can be used as my investment asset.

Since it is a non-taxable product, the effect of increasing investment income will be much greater than that of other products.

And, there is no regulation that you have to find and use this amount until when.

Therefore, it means that while paying the maximum amount to the HSA account every year,

this HSA account is used as a non-taxable investment account at the same time,

and if actual medical expenses are incurred, I can use my personal funds for this amount.

And if I were to expand this a bit more...

This means that I don't use the balance of my HSA account myself,

but I can take care of the receipts for the medical expenses I paid myself,

and then use them so that I can find them as non-taxable when I find HSA later.

What this means is,

for example, if I retire before the age of 60,

and if there's a situation where I have to find and spend some money, need to find my retirement pension account,

IRA or Roth IRA will be penalized if I find a retirement pension account before 59.5,

but in the case of HSA, by taking the method of finding the accumulated amount of HSA's medical expenses years or decades ago that I paid for my personal expenses as I mentioned,

even if you retire early and have to withdraw,

you can benefit from avoiding penalties.

The next utilization plan can also be used as insurance premiums for old-age health insurance and Long-Term Care Insurance.

Therefore, it means that as I continue to invest in this HSA,

I can use a certain amount of the amount of money that has been disqualified and increased here to buy long-term care insurance products depending on age in preparation for retirement.

Finally, like other retirement pension accounts, HSA can be inherited to my children if I don't spend it all.

We've looked at the advantages of HSA.

I hope you always consider ways to reduce the income tax and what is the most advantageous investment plan in terms of tax reduction.

Many of you were curious about it,

Looking at the year, it may not be a very large amount of money to put in up to $7,200,

but considering the tax savings, I mentioned earlier,

it's an investment plan that provides tax benefits that can be very effective, so please consider it.

The content on the screen shows that assuming an annual return of 10% when you start an HSA account at the age of 30 and carry out such investment activities for 40 years until the age of 70,

this amount will increase to more than 3.3 million dollars.

Furthermore, it can be seen that this amount is very effective in that it is the amount after tax.

Therefore, general IRA and Roth IRA would be good,

but if I meet the conditions of this High Deductible Health Plan mentioned earlier,

it would be better to consider and proceed with HSA first than any other retirement product.

There are many products in banks and securities firms.

If you contact our office, we will help you briefly. This is the end of today's video.

That's it for today's video.

I hope it helped you. I'll see you next time. Thank you.