Salary deductions
May 12th 2022, 1:09 pm
#16
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Re: Salary deductions
I agree with the 'go for it' consensus, as it sounds like a good opportunity, as long as your wife doesn't mind not working (she could volunteer to fill her time though).
Are the company happy to wait for you to start work?
Are the company happy to wait for you to start work?
May 12th 2022, 1:10 pm
#17
DE-UK-NZ-IE-US... the TYP
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Re: Salary deductions
In regards to the HSA or FSA, you are the one that designates how much is taken from your salary to be saved for uncovered medical expenses. The monies taken out are before taxes so that lowers your tax bill somewhat. The problem with some of those plans is that the monies must be used by the end of the year or they are lost. And yet there are some that will let the monies accumulate yearly.
My apologies to those that answered before I posted this morning
My daughter in NY had self insured through her husband's firm. Their annual deduction before healthcare kicked in was $6,500. They were mandated to pay $1,200 per month into the HSA to meet this deductible. That's a large chunk of money for a lower middle class white collar salary. Well, that's their story but it is not necessarily every self insured person's. Fortunately, she now works full time for a school and they have changed healthcare plans and are living easier because of better coverage and lower deductible.
Will you be offered dental? Prescription? Eye Glasses? What is the charge for that or is it included with the healthcare plan?
Not all companies offer pensions. They will offer a 401K plan that you fund with a percentage of your income. The monies are taken from you before taxes so it also will lower your tax bracket.
My apologies to those that answered before I posted this morning
My daughter in NY had self insured through her husband's firm. Their annual deduction before healthcare kicked in was $6,500. They were mandated to pay $1,200 per month into the HSA to meet this deductible. That's a large chunk of money for a lower middle class white collar salary. Well, that's their story but it is not necessarily every self insured person's. Fortunately, she now works full time for a school and they have changed healthcare plans and are living easier because of better coverage and lower deductible.
Will you be offered dental? Prescription? Eye Glasses? What is the charge for that or is it included with the healthcare plan?
Not all companies offer pensions. They will offer a 401K plan that you fund with a percentage of your income. The monies are taken from you before taxes so it also will lower your tax bracket.
HSA keeps building up…
think your figures are off… the max HSA contribution for 2022 for a family is $7300 and 12 x $1200 would be $14,400 which is double the 2021 family maximum of $7,200…. Even if they are 55+ the catch-up is only $1k extra
https://www.benefitresource.com/blog...on-limits/amp/
Last edited by tht; May 12th 2022 at 1:13 pm.
May 12th 2022, 1:43 pm
#19
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Re: Salary deductions
Will you be offered dental? Prescription? Eye Glasses? What is the charge for that or is it included with the healthcare plan?
Not all companies offer pensions. They will offer a 401K plan that you fund with a percentage of your income. The monies are taken from you before taxes so it also will lower your tax bracket.
Not all companies offer pensions. They will offer a 401K plan that you fund with a percentage of your income. The monies are taken from you before taxes so it also will lower your tax bracket.
Below is a rough breakdown of the healthplan. Figures are with spouse and paid biweekly.
The low cost plan is ~$230 and high plan is ~$320
Dental in included for myself, with spouse its $30
Vision is $13, its the low option.
Now, what i dont understand is, the low plan doesn't have any annual deductibles, but the high plan does of $2k/family. What is annual deductibles?
Prescription is based on 4 tiers, costs are similar for both plans. ranging from $10 to 120 for 31 day supply.
Company contributes 9% pension regardless if I contribute or not.
What are your thoughts on this health plan?
And for HSA contributions, is it common for employers to also contribute? there is no mention of it in the benefits guide. Might be worth asking.
May 12th 2022, 1:47 pm
#20
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Re: Salary deductions
May 12th 2022, 1:49 pm
#22
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Re: Salary deductions
... I think your figures are off… the max HSA contribution for 2022 for a family is $7300 ...../
May 12th 2022, 2:23 pm
#23
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Re: Salary deductions
With my annual deductible on prescriptions when I lived in the USA, I used to pay full price on my repeat prescription for the first couple of months each year before the deductible had been met, then it was $30 per 90 day prescription.
My company didn’t offer an HSA, just an FSA. As mentioned above FSA contributions have to be spent the year they are made so a bit of forward planning was required. I would sign up each year to put enough pre tax money
into my FSA to cover what I expected to spend on my prescriptions and dental visits, and eye exams etc.
HSAs are much better I think since they roll over each year.
May 12th 2022, 2:37 pm
#24
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,448
Re: Salary deductions
.... Below is a rough breakdown of the health plan. Figures are with spouse and paid biweekly.
The low cost plan is ~$230 and high plan is ~$320
Now, what i dont understand is, the low plan doesn't have any annual deductibles, but the high plan does of $2k/family. What is annual deductibles? ....
The low cost plan is ~$230 and high plan is ~$320
Now, what i dont understand is, the low plan doesn't have any annual deductibles, but the high plan does of $2k/family. What is annual deductibles? ....
May 12th 2022, 2:38 pm
#25
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May 12th 2022, 2:39 pm
#26
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Re: Salary deductions
So, im told the healthplan is pretty generous.
Below is a rough breakdown of the healthplan. Figures are with spouse and paid biweekly.
The low cost plan is ~$230 and high plan is ~$320
Dental in included for myself, with spouse its $30
Vision is $13, its the low option.
Now, what i dont understand is, the low plan doesn't have any annual deductibles, but the high plan does of $2k/family. What is annual deductibles?
Prescription is based on 4 tiers, costs are similar for both plans. ranging from $10 to 120 for 31 day supply.
Company contributes 9% pension regardless if I contribute or not.
What are your thoughts on this health plan?
And for HSA contributions, is it common for employers to also contribute? there is no mention of it in the benefits guide. Might be worth asking.
Below is a rough breakdown of the healthplan. Figures are with spouse and paid biweekly.
The low cost plan is ~$230 and high plan is ~$320
Dental in included for myself, with spouse its $30
Vision is $13, its the low option.
Now, what i dont understand is, the low plan doesn't have any annual deductibles, but the high plan does of $2k/family. What is annual deductibles?
Prescription is based on 4 tiers, costs are similar for both plans. ranging from $10 to 120 for 31 day supply.
Company contributes 9% pension regardless if I contribute or not.
What are your thoughts on this health plan?
And for HSA contributions, is it common for employers to also contribute? there is no mention of it in the benefits guide. Might be worth asking.
$2800 for a family plan.
https://www.healthcare.gov/glossary/...e-health-plan/
Last edited by tht; May 12th 2022 at 2:41 pm.
May 12th 2022, 2:45 pm
#27
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Re: Salary deductions
I am wondering if the employer mandated front-loading the HSA for say 6 months to reduce the risk that when someone first switches to an HD& HSA health insurance plan, that a large medical expense during the first year could lead to situation where there are insufficient funds in the HSA to meet medical expenses that are less than the deductible?
May 12th 2022, 2:50 pm
#28
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Re: Salary deductions
OK, so per my previous advice, above, you're going to save $90 x 26, so $2,340, every year by taking the HD plan, but have a $2k deductible, so as I described above, this makes taking the HD plan a no-brainer, as you are, based on the numbers you provided, saving more in premiums than the HD plan deductible. So unless there are other differences between coverage once you have passed the annual deductible, then IMO the HD plan is clearly the better choice.
a $2k annual deductible does not sound like HDHP, and is likely not eligible for a HSA.
$2800 for a family plan.
https://www.healthcare.gov/glossary/...e-health-plan/
$2800 for a family plan.
https://www.healthcare.gov/glossary/...e-health-plan/
On the low cost plan ~$230 (not sure it can be called a HDHP as there are no deductibles?) there are no deductibles. But on the high cost plan ~$320 (called premier choice plan) there is a annual deductible of $2k/family. With the high cost plan, there are no charges after deductible for most services which are services I dont think we'll use. But for stuff we'll use like routine check ups, immunisation, virtual checks, etc are free with both plans.
@Pulaski, So I guess its an even better option to go for the HD plan which has no deductibles but ofcourse I will need to compare both plans in detail.
Last edited by billy_a; May 12th 2022 at 4:13 pm.
May 12th 2022, 2:52 pm
#29
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,448
Re: Salary deductions
But in any case, if the employer says it's an HD plan and is HSA eligible then it will have to have been approved by their tax accountant and the medical plan service provider/ insurance company..
May 12th 2022, 3:34 pm
#30
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Re: Salary deductions
It's about the same as the deductible on my HD plan. The deductible started out, when I first signed up 14 years ago, at around $3k, but has declined since then. I am not sure why, but it is now down close to, if not at, $2k.
But in any case, if the employer says it's an HD plan and is HSA eligible then it will have to have been approved by their tax accountant and the medical plan service provider/ insurance company..
But in any case, if the employer says it's an HD plan and is HSA eligible then it will have to have been approved by their tax accountant and the medical plan service provider/ insurance company..
it’s only on Healtcare.gov, not looked on IRS site:
”For 2022, the IRS defines a high deductible health plan as any plan with a deductible of at least $1,400 for an individual or $2,800 for a family. An HDHP’s total yearly out-of-pocket expenses (including deductibles, copayments, and coinsurance) can’t be more than $7,050 for an individual or $14,100 for a family. (This limit doesn't apply to out-of-network services.)”
https://www.healthcare.gov/glossary/...e-health-plan/