Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Biz Owners: Maximize Your Profits with a Powerful Dual-Benefit Tax Strategy #YearEndTaxTips

Name: Painting Biz Owners: Maximize Your Profits with a Powerful Dual-Benefit Tax Strategy #YearEndTaxTips
Uploaded: 2024-11-27T14:15:02+00:00
Duration: 4 s
Channel: Daniel Honan
Description: In this brief advisory video, the speakers counsel painting business owners on leveraging high‑deductible health plans to qualify for Health Savings…

27 Nov 2024 · 0 min

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In this brief advisory video, the speakers counsel painting business owners on leveraging high‑deductible health plans to qualify for Health Savings Accounts (HSAs). They highlight that enrolling through the Affordable Care Marketplace is timely because open enrollment is approaching. The core message is that an HSA offers a rare "double‑dip" tax advantage: contributions are tax‑free and qualified withdrawals are also tax‑free, making it an especially powerful year‑end tax strategy for owners with minimal health issues who can benefit from the high‑deductible plan.

If you do not have an HSA plan, look into getting one for next year.
If you're buying insurance on the Affordable Care Marketplace, open enrollment is just around the corner.
If you're just doing like yearly checkups, you don't have any significant issues health-wise, being on one of those high deductible healthcare plans is great. And then that allows you to do that HSA. Like you said, the only time where you can double dip on taxes, tax-free going in, tax-free coming out. It's like the best deal.
If you're a little nervous, what if I get an HSA plan and then somebody gets really sick or the kids need braces? Now I need my old insurance. You can always switch back each year. Your HSA doesn't go away just because you switched insurance plans, but that money is your money. It is not tied to your job. It is not tied to your insurance. It is your money that goes with you for life. And if you don't spend the money on medical expenses, by the time you turn 65 and you go on to Medicare, you can start drawing out of the HSA like a supplemental retirement account.