I have cash on hand that I want to put in my HSA. I'm just curious whether it is better to fill up the HSA via direct deposit through my employer, which is pre-tax, or if I should just use cash on hand because it is deductible (even if I don't itemize). If there is no difference tax-wise, then I assume I should just deposit the cash.
When making payroll deductions, you are also removing that income from social security and medicare taxation, so payroll deductions save about 7.65% more taxes than making after-tax contributions and deducting them on your tax return.
Of course, if you want to contribute for last year, the only way to do it is after-tax.
When making payroll deductions, you are also removing that income from social security and medicare taxation, so payroll deductions save about 7.65% more taxes than making after-tax contributions and deducting them on your tax return.
Of course, if you want to contribute for last year, the only way to do it is after-tax.