USA Better off paying HSA penalties?

Joined
Nov 9, 2015
Messages
2
Reaction score
0
Country
United States
I am posting this theoretical scenario, hoping to see what you guys think.

Say I have a high paying job, I am paid more than I deserve, so much so, I will be laid off soon and become jobless for many years to come.

If I contribute to the maximum, now through the time I get laid off, to my HSA (health saving account), the contribution is pre-tax. I save 25% in my income tax on that contribution.

Now I am laid off, jobless, not a dime of income. I live frugally. I take money out of my HSA. I pay a 20% penalty, and income tax - but wait, I am jobless, income-less, I am at the 0% (or near 0%) tax bracket. Net: I pocket the 5%.

Did I just discover a loop hole?
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

No members online now.

Forum statistics

Threads
11,782
Messages
27,851
Members
21,793
Latest member
nextgenaccountant

Latest Threads

Top