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Next week I'll get the materials for open enrollment, and I'll be able to see how much more it will cost me to have the traditional low-deductible PPO option compared to the HSA option (those will be the only two options this year). I also don't know what the deductible will be or how much possible employer contribution is out there. I suspect the numbers will tell me to go with the HSA, but I can'tt be sure yet.

By the way -- did you know that if you fund your HSA with payroll deductions -- making it a Section 125 cafeteria plan -- the HSA contributions are not only pre-federal income tax but also not subject to Social Security and Medicare taxes? On the other hand, 401K contributions are subject to SS and Medicare taxes. So putting a dollar into an HSA instead of a 401K can actually save you 7.65 cents in payroll taxes.

I could see that as a potential tiebreaker in some situations. For sure I'll start with the 401K up to the company match, and if I go with the HSA option I'll probably max that out (not sure how much that needs without knowing the employer contribution) and then work toward the 401K and Roth IRA again.

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