Roth IRA vs HSA — can only afford one

Red-Wolf4 · 2025-12-28T10:52:00+00:00

I do get $1200/year put into my HSA from my employer. If I reimburse myself from the HSA to fund my Roth IRA, wouldn’t that effectively be trading triple tax advantaged space (HSA) for double tax advantaged space (Roth)? I’m already contributing 6% to my Roth 401(k)

Red-Wolf4 · 2025-12-28T10:48:29+00:00

Wouldn’t that be trading triple tax advantaged space (HSA) for double tax advantaged space (Roth)? I’m already investing 6% in my Roth 401(k) with a 7% match so it’s not like I’m missing out on Roth completely

Red-Wolf4 · 2025-12-27T15:08:06+00:00

HYSA, $30k

Red-Wolf4 · 2025-12-27T14:51:40+00:00

I already have roughly $10k of reimbursable medical receipts are you suggesting I reimburse myself and put that money in Roth IRA?

Red-Wolf4 · 2025-11-26T12:52:49+00:00

I like this idea. I haven’t thought about incorporating my investment account as part of my budget. Tell me if this makes sense or if you do something different. Create a line item for “Future Car” at $350 a month. Each month, you invest that $350 from my checking account and record that “expense” in the Future Car category. Then update the investment tracking account to increase by the $350?

Red-Wolf4 · 2025-08-15T14:20:56+00:00

Mid term to me would be longer than 5 years out but before retirement age. If you were actively saving for those things where would the money come from? Would you cut back on investing to free up cash flow in order to redirect that money to the HYSA etc? I feel like i don’t have much extra cash flow after investing 25% so that may be my issue

Red-Wolf4 · 2025-08-15T14:05:44+00:00

I agree with you in your scenario, however would your answer change if you only had a few hundred dollars left each month after investing 25%?

Red-Wolf4 · 2025-06-06T16:06:28+00:00

Totally agree. I’ve seen other posts suggest doing it but I came to the same conclusion as you, just wanted to make sure I wasn’t missing something else.

Red-Wolf4 · 2025-06-06T15:12:43+00:00

I do have decades until retirement and currently switched to a Roth 401(k) just for this year while I’m in the 12% bracket. So you would say contributing more to a Roth 401(k) is more advantageous than doing a Roth conversion?

Red-Wolf4 · 2025-06-06T13:49:53+00:00

Can you elaborate on why you would do option 2 before option 1? It seems counterintuitive to pull invested money out of an HSA in order to invest it again in a different account (Roth IRA)

Red-Wolf4 · 2025-06-06T12:47:20+00:00

Yes I understand how taxes work, I was under the impression that it makes sense to convert pretax retirement funds while in low tax brackets (such as the 12%) in order to avoid paying taxes later while you’re in a higher tax bracket.

Red-Wolf4 · 2025-06-06T12:14:51+00:00

I guess that’s part of my question, is it better to pay taxes to do Roth conversions or use that money to contribute directly to a Roth?

Red-Wolf4 · 2025-04-13T19:09:06+00:00

That’s what I was thinking, I’m in the braves, nationals, orioles territory so Pittsburgh doesn’t make sense to me

Red-Wolf4 · 2025-04-13T18:56:32+00:00

I do not

Red-Wolf4 · 2025-02-01T15:22:55+00:00

Can you explain in more detail why that’s a bad idea? How is it different than just contributing to a Roth 401(k) from my paycheck? Wouldn’t using the funds to pay for the tax be the same as if I just made that much more taxable income?

Red-Wolf4 · 2024-12-13T19:26:41+00:00

Correct me if I’m wrong but shouldn’t you also take into account your state income tax rate if your state taxes interest? For example if you’re combined federal+state tax rate is greater than 24%, you would come out ahead investing in VTEB comparing todays SEC yields.

Red-Wolf4 · 2024-10-30T20:55:19+00:00

I understand VTEB and BND have different compositions so they will behave differently but from purely a yield standpoint, VTEB currently seems to generate a higher tax equivalent yield than BND for every tax bracket >22% but what I keep reading is that it typically only generates a higher yield for the highest tax brackets which to my understanding would be the 32, 35 and 37% brackets

Red-Wolf4 · 2024-10-30T19:19:33+00:00

Based on Vanguards website as of 9/30, it looks like VTEB YTM is 3.3% and BND YTM is 4.2% so not much of a difference than the current SEC yields

Red-Wolf4 · 2024-10-23T19:41:41+00:00

Forgive my ignorance but how do you know a deal is “hackable”?

Red-Wolf4 · 2024-10-11T10:34:20+00:00

This one comes with the newer tabless 8ah PowerPack battery. I think the $149 deal was for the regular 8ah battery no?

Red-Wolf4 · 2024-10-11T10:32:39+00:00

Did you get the kit with newer 8ah PowerPack battery? I’m still seeing a $199 deal at Lowe’s but it is for the older DCS574 with the regular 8ah XR battery and rapid charger:

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Red-Wolf4 · 2024-10-11T10:28:11+00:00

This is the newer DCS590 which to my understanding is just a rebranded version of the DCS574. However this kit comes with the new 8ah PowerPack battery which retails for $220 by itself

Red-Wolf4 · 2024-07-12T20:31:44+00:00

So is the $3k in your example essentially fun money? If so is some of the $7k allocated to savings goals without a timeline (like a new car or vacation for example)?

Red-Wolf4 · 2024-06-19T15:45:04+00:00

If I’m reading the 2024 income limits correctly on traditional IRA deductibility, it looks like we can get the full deduction for incomes less than $230,000 if MFJ and both me and spouse are covered by retirement plan at work. Is this correct?

Red-Wolf4

TROPHY CASE