Investment

» allancoleman - 2006 / 2007 HSA data

The maximum $6,150 HSA deposit I made in January of this year ( 2006 ) resulted in approximately a $1,538 savings in my taxes owed on my 2006 tax return . It's approximate because I need to return to Alaska in 2007 to get my 1099's awaiting me in my mailbox before I can get a more exact calculation . The $6,450 maximum deposit I will make to my TAXFREE HSA account in January of next year ( 2007 ) will bring my account total to over $14k that can be used not only for medical expenses , but also for medical expenses later under Medicare and long term care expenses later .

Intend to make maximum deposits to this HSA account until age 65 when I'll be on Medicare , at which time they are no longer allowable . Stay tuned .

These numbers were taken from the installation of my 2006 Turbotax software . And I highly recommend tax software as a planning tool for investing purposes . For example , it also looks like my $100k plus Roth conversion for this tax year ( 2006 ) is going to cost me approximate 14 cents for every dollar converted as my effective tax rate for this tax year is looking like 14% versus 15% for last year's ( 2005 ) taxes .

-- posted by allancoleman