Secrets To Supercharging Your Wealth With A HSA, FAST

Anything you invest in with your HSA is tax free growth. So there's a lot of people struggling right now. May have money in an ira, but don't have an HSA or money in an HSA and they need to pull that money out. You just take it on a Monday, move the IRA contribution to your HSA and then you can take out that money immediately, penalty free and tax free for that medical expense.

In the next 60 days, you can put in $16,600 into your HSA. Welcome everyone to the Main Street Business podcast. This is Matt Sorenson, joined by the great and powerful Mark J. Kohler.

Thank you. Appreciate that.

You're welcome. And it's an honor to be with you. It's that special time of year, tis the season.

Oh, healthcare enrollment. Thank you. We just did Medicare a few weeks ago. Now we're into healthcare enrollment. Yes, it's.

Yeah, that most wonderful time of year when your healthcare renewal is probably up and you're thinking of health care plans. But it's also a great time to think about what's my tax strategy on this? Maybe I'm using an hsa, maybe I'm a business owner. I got some other strategies to think about. This is an area to make some awesome savings. And so we wanted to freaking talk about it.

Yeah, it's huge. It's not the time of frankincense and myrrh or the three kings golden gifts.

We haven't even had turkey yet.

It's a bronze plan, a gold plan. You, that's the golds for the metals we're talking about. Yeah.

And if you got an employer, are you renewing? Are you, what plan are you choosing? If they got an option.

Yeah, it's a big deal. So there are some decisions that you need to make right away, quickly. That's why we're talking about this. And so let's I guess start with oh, and there's so much to cover here, so maybe some low hanging fruit. I think the big reveal is we've got to talk about if you're choosing health insurance right now, making sure you qualify for the health savings account. What's so great about the health savings account? Yeah, that we could do a whole show just on that, but maybe hit a few year end medical conversational points. Let me just rattle off a couple that I think everybody should know. One is you should be writing off your health insurance premiums. So for any of you that have your health insurance covered by your employer or your spouse's employer, great. That's God Bless you, Enjoy the ride. But if you're paying for your own health insurance, you need to know that you can deduct 100% of your health insurance premiums off in your side hustle in your main business, small business, whatever. You do not have to cover your employees in order to write off 100% of your own health insurance. If you have an S corporation, it needs to be paid for by the S corp, even if it's a personal plan and indicated on the W2 you're taking out of your S corp. So that whole process is very, very important. So I want to reiterate, if you're an S corp, you, you're paying for your health insurance, you're paying for employees or not, do not care. But for your own health insurance, you gotta follow certain protocol, make sure you're on top of it. And it's gotta be done by January, so this is in the next six weeks. You gotta make sure your payroll company knows to indicate that health insurance premium on your W2.

Yeah, and that's probably one of the biggest errors is self employed people forget to put that on their W2 or forget to be paying it out of their S corp bank account. Maybe they're paying it personally. Don't be that guy.

You know what I mean?

Get it done. Right. You're listening to the Main Street Business podcast. We're setting you in the right way. And of course those of you who are employed somewhere else, right, your employer, it's not coming taxable out of your paycheck. You're paying a portion of that. Obviously that's not being taxable to you. It's deductible and your employer is deducting it. And if you business owners, of course, you got 50 or more employees, you have to provide health insurance for your employees or some type of coverage. And you're deducting that, of course.

Okay, now, flexible spending account, another low hanging fruit. So if you do have a plan at work or your spouse, it's the FSA flexible spending account. That's the use it or lose it. So you need to be thinking in the next six weeks of turning in those receipts, making sure you tap that out. Be thinking of anything medical, I mean copays, deductibles, dental, eyes, you might need to say, oh, I'm going to go squeeze in a dental visit before year end or go get new prescription glasses or something like that. If you've got the flexible spending account benefit, use it, don't lose it. Yeah, now there are some catch up Provisions that you can use in the spring. But it's always wiser to be thinking about it right now. Call and make those final last minute doctor's appointments before your end and tap into that. Yeah.

And the fsa, if you got one with an employer. Great. We don't love it for small business owners, by the way. Just do the freaking hsa, which we want to talk about next, which is the health savings account. Here's why we love the hsa. There's a number of reasons why and why you should be thinking about it. Maybe you're in open enrollment right now and you're looking at an HSA qualifying plan versus a non HSA.

I think we could come up with 10 for fun. You want to do. I'm going to say 10 reasons why you should freaking out David Letterman top

10 list for those that might remember David Letterman.

All right, I'll write them down. I'll be the secretary here.

Yeah, you go.

What's number one? What do you like?

Well, number one, I get a tax deduction for putting it in, no matter my income. I could be a billionaire, a millionaire. There's no phase out on it. I get a tax deduction which is 4150 if you're single, 8300 for married and married could be. Or family or head of household. Yeah. Which could be you and a child or you and a spouse. And so that's a pretty awesome deduction. I get front page of the tax return. Doesn't matter whether I itemize or not. You freaking get that deduction no matter what.

Number two, um, let's stay on that tax theme for a moment. Anything you invest in with your HSA is tax free, growth tax free, meaning which will come to one of the other benefits. I guess we could say this. I don't know if this is two separate ones. It's going to grow. I'm going to say grow. Tax free.

Gross, tax free.

Gross tax free. Gross tax free.

And you got to get to 10, so don't eat them up.

Yeah, I got to be careful combining some here. But gross tax free. And can I give you. I'll ask you what can I invest that in? Yeah.

And you can actually invest it in stuff you believe in. Maybe you put it into crypto and you're like, sweet, my HSA is actually in crypto.

It's been a good week.

It's been a good week. You know, so crypto's been up. But you don't just have to put it in a savings account. So Many people do an HSA and they just put it in a bank savings account. Guys, this is a tax free vehicle where you can invest it and the gains are not taxable. So use that money and invest it in stuff you believe in. It could be real estate, it could be crypto, small business. That's, of course what we do at directed ira. You can self direct it there.

Yeah. With the FSA or hra. Other strategies, you're not able to control and invest the account. So every year you're passing go, you're putting in this 4100, 8300, blah, blah, blah, and then it could triple in value. And then next year you get to put in another 4,100. We've got clients with 50, 100,000, $200,000 HSA accounts because they're investing as we go. Number four, you can open an HSA anywhere you want. They're portable. So if your employer has an HSA and they're going to put a few hundred bucks in, fine, let them do that. But you can go open an HSA anywhere you want. We have them@directedira.com you can open up an HSA and be putting in money tomorrow and buying anything the freak you want.

So that would be mandated to stay with your employer. They might be throwing it in to HSA of America, yada, yada, which has crappy investment options. But you could transfer that immediately. It's not like your 401k where you're held hostage because that's your employer's 401k. Now, you may be stuck with they drop it in there and you got to move it. But you can fund the difference, of course, in an hsa, wherever you want. Directed ira. Or you can also transfer over that money.

Yeah, I like that.

Number four.

Okay. Number five, Jim.

Well, number five is it comes out tax free.

There we go. I was going to say it comes out tax.

You got to get. This one's got to be in the top five for qualifying medical expenses, anything. Yeah. And you don't have to wait till you're 59 and a half like a Roth IRA. So I can use it before that coming out for qualified medical. But let's be honest, we have qualifying medical. All right. And when you get older, you're gonna have a lot more of it. So I love this as a vehicle to continue to grow and invest it, even if you're like, I'm pretty healthy right now. I don't need the eight grand a year. I can drop into this for my Medical. I'm only spending a thousand or two bucks out of pocket.

Cool.

Let's let that 6,000 keep rolling and investing and growing. It's coming out tax free later.

Now we're going to come to here. We're taking midway break right here. We've been to five, and we may even have more than 10. But we're going to give you the time constraint and why this is so important right now at the end of this list. So that's going to be a big reveal here of what you need to do in the next two weeks to take advantage of this possibly. So. Okay, number six, and I'm going to repeat what Matt said. It comes out tax free for any medical expense. Think when you're like, well, what does that mean? Go to Publication 502. It's IRS Publication 502. Just Google it. And it's like a book. And so you can look up in the index. Any medical expense that you can imagine will be listed in there and it'll tell you whether it qualifies or not. Now, number six, you.

Can I give an example?

Yeah, sure.

You know, all the GLP1, the semi glutides, you know, your testosterone, your, you know, Viagra, Cialis.

I mean, you've heard some people might use that.

Any listeners? I'm not saying yours. Okay. I'm just saying.

Right.

But if it's prescribed, you know, for like weight loss or, you know, there's a lot of people that are using these more, I'd say as, yeah, you know, they're not medically necessary. I don't know. But those are things that you actually can use your HSA for shopping.

So really, you can get tax free growth.

If you can get tax free growth, just make sure you understand the side effects and don't overdo it.

And if that tax regrowth lasts for more than three hours, call your doctor and your accountant.

Yes. Okay.

All right.

On the accounting side, we're okay with that.

Yeah. Okay.

On the account side, we're okay with that. The tax free growth can go on forever. You know, it could take. But.

And the account grows and grows.

The medical side, you might want to look into that.

Yeah. I don't know what anyone else is thinking about, but I saw some smiles here. I don't know what our studio's even thinking about. That's weird. Okay, now, number six, this is super cool. A lot of people think, well, I gotta put the money in there, then I can take it out. Sounds like work. You can reimburse yourself for medical expenses at any time, for any medical expense that you had while you had the HSA account, for example, you might let this money grow for two or three years invested in whatever you're keeping receipts. You can write yourself one big check three years from now and reimburse yourself for all the medical you had the last three years. You can save up your medical for the next 20 years. And at age 65, write yourself a check for several hundred thousand dollars, tax free, any medical expense moving forward. Now, this also makes it easy on you. Put money in, go to the doctor, keep the receipt, and then just write yourself a check later. You don't have to have an HSA debit card or an HSA credit card. Just reimburse yourself once a year for all the medical you had during the year. So the reimbursement procedure, it makes the HSA really easy to use.

And that's a lot. That's a huge misconception people have, like, oh, I don't have my HSA card. I'm at the doctor, I'm at the pharmacy, or, you know, I got to pay this bill. And they're like, I didn't use it, I lost it. No, it doesn't matter. The HSA card is just a convenience for you. That's not the method of how you have to do it. You just have to have a record of it and get reimbursed back for it. And I love that strategy because if you don't need the money right now and you want tax free growth, use the HSA account, draw the money out later, get all that tax free growth, all that money gets to stay reinvested. It's not hitting your 1040. It's like a supercharged Roth IRA because you caught a deduction on the way in.

Oh, love it. All right, I got seven. You got one.

I got number seven.

Okay, go ahead.

Okay, this is the one that's really timely right now. And this is how you can max out your HSA contribution. If you're new to the HSA party, let's say you get an HSA qualifying plan right now in November of 2024.

Okay. Okay.

And you're like, well, there's this pro rata rule that says how much I can put in my HSA based on how long you long I've had it. And that is a rule. But there's a loophole to that rule called the last month rule that says as long as you had an HSA qualifying plan by December 1st of the year, you can take the full HSA contribution for that year. So I could put in 4150 if I'm single or 8300 if I had it. I set it up in November. It's before December 1st in before the last month. I can take the full year's contribution last month rule.

So as long. So that's why open enrollment is so important right now. Let's hit this on this note. Open enrollment started and you can go to the exchange in your state. You could go use an independent broker. You could go to the HS healthcare.gov depending on what state you're in and start shopping and pull the trigger. Pull the trigger. And I've had, I've helped family members just in the last month. They have a plan the next day. So you, you can get on those exchanges and buy the plan you need. And we're going to come to some requirements. I don't know if those are benefits, but we'll mention those a little later about what an HSA qualifying plan is. That would not be a benefit of having an hsa. So we're going to give you some of the time, the requirements there. But the beauty is I could go pull the trigger, get that plan set up as early as tomorrow and be able to take that write off for the whole year. Okay, now I'm going to say number eight, you have until April 15th to put that money in. That's huge. So I can get my insurance right now and go, well, I don't have 4150 before you're in. That's fine. You have until April 15th to put the money in for the prior year. So I'd call that the April 15 rule is that you've got the last year contribution. Yeah, last month rule.

Okay, let me give number nine here. We're getting to the end here. And that is the HSA qualifying plans are a lot times cheaper than a non HSA qualifying plan. So this particularly if you're healthy or not someone that uses health insurance a lot, this is a great way to get the tax deduction by making the contributions to the HSA again, letting it grow tax free, come out tax free later. But I'm getting a cheaper health insurance

plan because of the higher deductible.

Because of the higher deductible. And we'll come to that here in a second. What that deductible needs to be. But so it can be a cheaper way for me to afford my healthcare insurance coverage.

Yeah. And on that be careful because you can go on the exchange let's say where there's a state or the federal exchange and start shopping and you'll go, well, this HSA plan is more expensive than just a regular HMO plan. So why would that be? Well, you have the metal plans, you have the bronze, the platinum, the gold plants, which provide different benefits. So that can change the cost of an insurance policy. And you also have the network. Some of you are like, well, I want this network and I want it to cover everything. Okay, well then compare apples to apples. So say I want an HMO plan with this network. Then say, oh, okay, if I get that plan in an HSA version, it could be, it will be cheaper than the other plan. But if you just look HSA plan here with all those benefits to a crappy bronze plan over here, that's hmo. That would you. You're going to see price differences. So always compare apples to apples. When you find the network and the type of plan, then Tallow it for HSA or not. So just be careful. Okay. Number 10, I think we're going to break 10. Number 10 is the HSA turns into an IRA at age 65. So if you say, well, I didn't use it for medical and now I'm 65 and I need some extra money, you can go to your HSA and it's treated like an IRA at age 65. I love that because sometimes you think, well, I'm not going to be able to use it and now I'm stuck.

Number 11, you do not have to have earned income to make an HSA contribution. This is good for a lot of our investor clients and having good investment income, but they don't actually have earned income on their tax return, which is typically required for an IRA or 401k contribution.

I didn't even think of that one.

So the hsa, no earned income requirement.

Okay.

Still get the deduction.

Love it. Number 12, you get to designate a beneficiary to your HSA. So when you die, it goes to your spouse's HSA or into an IRA for your kids. So it morphs into an IRA with the 10 year rule with your kids or it turns into an HSA for your spouse. And that is really powerful because like we said at the beginning, this is a portable account. It's like an ira so when you die, you don't lose it. You can leave it to, you can bequeath it. I'm going to just say bequeath or it can be inherited by your family. Okay, you ready for another one? You Got one.

Yeah, I was just stuck on Bequeath it.

I know that's kind of an antiquated name. We're a dumb word. You can. Well, what do you want to say? You can pass it on or you can.

Beneficiaries pass it on. Your heirs can inherit.

Heirs. Okay.

Heirs can live on.

Live on. Okay. All right, all right.

You need to say excuse me after you be clear.

Okay.

Okay.

You got one.

The jokes today.

I don't know. This is not good. Yeah, we are. We're gonna hear. We're reaching. Yeah, we just lost 10 more subscribers. Okay, 13.

Oh, let's see. You've got one already.

Yeah, locked and loaded.

Okay, let me say this one. That. And I. I kind of hit this on the deduction, but I want to add a little bit, little color to this is. Health care is really difficult to write off. You get that deduction no matter what. You do not have to itemize. This is not a miscellaneous itemized deduction that exceeds a certain amount of your adjusted gross income. Because a lot of people do their 1040, their tax return. They're on TurboTax. They're working with their accountant. They're like, look at all these receipts I got. There's like, I got $5,000 of medical. And they're like, okay, you made $100,000. Those are non deductible, period. You can't write off one cent of it. But if you drop that into the HSA and paid it out of the hsa, now it is deductible. Okay? But you had to use the hsa, which is kind of the laundering of the money. So I think there's two ways to think about the hsa. A lot of people think about it as, let me just get the max contribution in, because I want to invest it and get that tax free growth we've been talking about. But some people are like, Matt, I don't have enough money to set aside to. To start investing this. I'm still doing the matching out to get money in my 401k or maybe a Roth IRA. But I do have a couple thousand of medical every year, and I want to get the fricking tax deduction for it. Okay? Drop it in the HSA and pay it immediately out to cover that medical. That way you get the deduction on your tax return. You don't have to do the whole itemizing thing and reach that ridiculous threshold that 98% of taxpayers don't get.

Okay? And I on our list here, which I want to put this in a little blog article or somewhere. But number one was you get a tax deduction. Number 11 was there's no earned income requirement. And number 13, there's no high income limit. Like, and I think that, and that's where you say, and you don't have

to have a significant amount of medical. Where it's now hits the miscellaneous item deduction, which is threshold. Nobody rarely meets.

Okay. Number 14 is between age 55 and 65, you have $1,000 makeup. So you get to put in that thousand dollar makeup. And here's a trick for this. There's a, this is a pro tip. Let's say you're married and you're both 55. Or to age 65, well, it's $1,000 makeup in the plan. So if you're married, I could put in instead of 8,300 this year, I could put in 8,400. Here's the pro tip. Bifurcate your plans. So now you have two separate HSAs, not just a family HSA. So now you can put in 1,000 and your spouse can put in 1,000. So you're really doubling down on that thousand dollar makeup provision when you have two separate HSAs. So but a lot of people just have, oh, we have an HSA. We're married. Well, at age 55, you only put in 1,000. So at age 55, when you both turn 55, split into two HSAs, you get that extra thousand. All right.

Okay, I got my last one.

Okay. Number 15.

All right, I want to dunk this one. Okay.

Okay.

Taking it to the hoop here. All right. Okay. In the next 60 days, you could put in $16,600 into your HSA. Because if you have an HSA qualifying plan right now or by December 1st, you can make the 8300 contribution for 2024. And coming around the corner here and just less than 60 days, we have 2025 and I can drop in another $8,300. Again, this is the family number. To have $16,600. And I think it actually goes up for 2025 a little bit. But I can have over 16 grand in my HSA within the next 60 days, getting a tax deduction. 2024. And in 2025. But now I got 16k to go and invest in things I actually care about.

No. And on that, I'll call it the double down at year end because you're doubling it up. And why does this matter? And for some of you that have listened to our podcast, I, I give Matt Sorenson, the infamous Matt Sorenson. Credit for this strategy. I'll take matching out. That's okay. That's a good one of mine, matching up. But the one about Matt and I

borrow that one often.

I do, I appreciate, I borrow, I borrow this one.

Okay.

And Matt's is invest early, not when you have to to get, get it in before year end. It's invest as early as you can. And you've done the math on this. So yeah. And I'll say, for example, if on January 1st I can put in money, think with that mentality, not, oh, I have until December 31st, I'll wait then why?

Well, the big reason why is the time value of money, right? We're investing this money, right? You got to make the contribution and start investing it. But if I'm like getting my money in January 1st of 2025 for my HSA contribution of 8300 bucks rather than April 15th of 2026, I've got 16 months of investment growth that I have on my money. Guys, we're talking about your money working for you in a tax free way. Why would you wait 16 months to do that? You should be doing that the freaking first month. You can. And the same thing's True for your 401k, your Roth IRA. These are tax advantaged accounts that doesn't hit your 1040. Every dollar of returns you make gets to get reinvested. It seems like a no brainer. Even Fidelity did a report on what are the characteristics of people who have million $401ks. That was one of the things they said. They max out their contribution as soon as possible. They don't wait to the deadline. They wait until the deadline of when you can put it in. Not the last day you can put it in the first day you can put it in.

Now, Matt, I like that last one. That's an important strategy, like you said, for 401ks or IRAs or anything. As soon as you're able to get the money, get the money in. Wouldn't say that's maybe a benefit of the hsa. So let me throw out one other benefit, maybe on the top 15 list.

I think it's a benefit if you take advantage of it.

Fair enough, fair enough.

All right.

But one other kind of obscure rule is you could do what's called an IRA to HSA rollover. Now you don't get the tax deduction,

but let's say you already got it once.

Yeah, but let's say you're under age 59 and a half. You've got an Iraq, you've got some medical expenses and you're like, I need to pay for those. If you pull the money out of an ira, I got to pay penalty and tax. But if I just take one extra step on a Monday and move my IRA to my hsa, it's a once in a lifetime option. So you can say I'm tight on cash. There's a lot of people struggling right now. They have may have money in an IRA but don't have an HSA or money in an hsa and they need to pull that money out. So you just take it on a Monday, move the IRA contribution to your HSA and then you can take out that money immediately, penalty free and tax free for that medical expense. Yeah. No write off. And it does chew up your contribution for the year. But for those that are in a tight spot, it's a way to access IRA money for a medical expense that you may have not been able to otherwise.

Yeah. And I think that's okay because it's like I didn't already got the tax section putting into my traditional IRA anyway.

True.

And so I don't get another tax section to move it. And the amount you can do is the annual contribution limit at the year you do this whether you're single or married. So that's the 4150 or 8300 for 2024. You can do this with the Roth IRA, but you would never. Why would you do that? This is a tax free account coming out tax free later. And you could probably take the money out of your Roth IRA anyways because the contributions you put in can always come out tax free anyway.

I would never do this with a Roth. Yeah.

But traditional IRA is a good one. If you got a bill you want to pay rather than take the, the, the withdrawal from the traditional ira.

Yeah, good.

That's going a little less known.

Yeah.

But could work.

Little unlocking. Yeah. Still a Benny now with 15. I love it. 15 reasons why the HSA kicks butt. So let's talk about requirements. The first one is you have to have a high deductible or an HSA qualifying plan. Just look for that little blue button or icon wherever the hell you're searching for your insurance. Number two, you cannot play with the HSA or make contributions unless you have that high deductible plan. Another requirement or problem is that once you start Medicare, you can't make new contributions to the new contributions to the hsa, but you can keep pulling out money and investing it if you already have one. But once you're on Medicare at age 65, you're out of, you're not allowed to make any new contributions to your hsa.

Now let me hit the annual out of pocket deductible. Just, you know that, you know, the best thing is to look like Mark said, for HSA qualifying plan checks, all the boxes, but that minimum annual deductible for individual is 1600 annual deductible, maximum out of pocket of 8050 and family 3200. Annual out of pocket or sorry, annual deductible and annual out of pocket limit of 16,000.

Yeah, and the strategy here too, another, I like that 16 month preload strategy. There's also one here too, is that if you have medical insurance, you're not even using it, you're just a healthy person, but you got it in case of an emergency. Okay, this is, this is a wake up call, hopefully for you to go, you know what, I might as well convert it to an HSA plan anyway. I'm not using it. A higher deductible plan is not going to kill me. I can put the money in my HSA and if I need to pay for that higher deductible, I go to get my HSA to get it. I'm going to get maybe a lower premium and it's just a smart economic move. So that's it. I mean, you've got to have a plan. It's got to be the right type of plan. And you're in the HSA party, much like you that want to be in the Roth party. If you get a little bored, you want to be in the HSA party too. Yeah, you go across the street just like the girl sorter. You go to the guy party, then you want to go to the girl party.

Well, there's the party animals out there that want an hsa, a Roth ira, maybe a backdoor Roth ira, You know, that's, this is for you. Okay? This is for you. So don't miss out on that party either, because you're a party animal. All right, well let's, let's move over to the HRA though, because what if I have a lot of medical though, Mark? Maybe I'm self employed and I'm like, guys, 8,300 families, not going to cut it. I burned through that in a month.

Well, you know what I'm going to propose here that we have an HRA show next week because this is another strategy that has to be implemented before year End.

But you got to give them a teaser, a little trailer.

Yeah.

So, you know.

Okay, okay, fair enough. If you are a small business owner, you can have this cool 105 HRA plan and unlock the ability to write off unlimited medical expenses and still have an hsa. So now you can write off all of your medical. Screw the AGI 7.5% rule. You're not going to itemize still playing the HSA game and then write off all of your medical expenses unlimited. So it's called the HRA plan. Very popular with small business owners. It's. You're going to be more restricted. If you have employees, you can still do an hra, but it's going to, you're not going to get this unlimited benefit. So it's really cool for the solopreneur and a big medical expense. So.

Yeah. So make sure you're subscribed to the show, you know, and are staying tuned for the hra. I was on your tax Pro training last night, Mark Scott. You know, hundreds of tax professionals are doing training. Other experts were on talking about the HRA and the different strategies and how to make it work on the tax return and pretty awesome strategy and tons of detail in depth in that.

Well, thanks for mentioning that. And for any of you that are a tax professional, enrolled agent, bookkeeper, a tax advisor, a cpa, a financial advisor, and you just caught this show because you're like, yeah, man, I want to know these 15 benefits of the HSA. We have the Main Street Tax Pro certification, a whole community and tribe where you get certified as a tax advisor. And this topic today is one of 75 and growing 12 modules. We have weekly trainings and it really is a community of people. I learned something new. I learned strategies last night. And I'll just, I'll give a little tip here. Can I give a pro tip? The HSA can be paid for by your S corporation and reduce your FICA liability while still maintaining reasonable comp. For example, let's say you determine that I need to take reasonable comp of $60,000 in my s Corp. Well, what you're allowed to do is take the HSA that. Let's say it's this $8,000. You can reduce the box two and three on your W2 for your FICA, but keep box one for reasonable comp at 60. But now you're only paying FICA on 52,000. So I just saved 15% on $8,000. That ends up being a $1,200 $400 tax savings on your W2 FICA responsibility. So if you're an S Corp owner and you're going to do an HSA, let your S Corp pay the HSA, make the HSA contribution for you, and reduce it on your box 2 and 3 of the W2. I just saved another $1,400 in tax. I know.

That was one of the strategies. I was like, dang, this is cool. Because, guys, that's a thousand bucks every year. You're already doing the S Corp strategy. You should be doing the HSA strategy. Why don't you just do it right and keep another thousand bucks in your pocket? But it's, it's a little tricky. And so this is why you're hoping to listen. To show you can get higher Main street tax pro. Markjkolar.com there's tax pros on there that know these strategies. And I like for the pros, like I'm learning so much on the, on those trainings.

So I was just saying I learned that strategy for my community. Yeah. Is that funny? I mean, I started this tax Pro program. Like, I'm going to teach some people some things. After one week I was like, holy crap, I know nothing. So it really is amazing. So go do a, a demo. You can do a free demo with one of our team members and find out what the certification is about. It's tax deductible. You get all the CE you need for life and you get a tax team and community that is second to none. So check that out. Everyone cool?

Well, yeah.

Thanks everybody.

We're at the end of the show. Thanks everyone for tuning in. Make sure you like the show. Please share, subscribe, give it a five star review, whatever you can do to help spread the good word of the Main street business podcast. We'll see you next time.