 triple tax What's up money geeks mr. V here welcome to another video guys so into this video I want to talk to you guys about HSA Savings account and know you're probably thinking to yourself like what's that got to do with investing in building what? Give me a chance to explain to you Before we actually jump into that I want to remind you guys that I did another video here on the channel where we talked about Setting up a Roth IRA account for yourself and putting money in there and investing it and why that is very important So if you didn't watch that video, I'm gonna hook it up here So you can definitely go check it out and also guys I really do encourage you to actually set up that Roth IRA account and stop putting money in there because that is what rich People do the bill worth and the other thing that I want to bring today now to continue that that's Logical step of you building wealth is your HSA account But before we get started guys, we're new to the channel We took about how to earn money how to save money how to invest and build wealth So that's something that interests you go ahead and hit that subscribe button any notification bell so you don't miss out on new content So your HSA account or health savings account has what you call the triple tax benefit So triple tax in the sense that you don't get tax when you put money into the account You invest the money and it grows tax-free and then you can spend that money tax-free So that's the triple tax who doesn't like to save on the taxes because I love saving on my taxes And this is some of the things that rich people do to stay rich and poor people don't even understand or even know that This exists to take advantage of it. Most people when they talk about health savings account at work Did you think all this is solely for health? That's about it They don't think about the fact that this is also an investment bucket that you can take advantage of So how does it go get it from health savings account into investing? Before we had FSA and now we have HSA the advantage with HSA with HSA is that once you put money in there Every year if at the end of the year you didn't spend a dime you were healthy You didn't go to the doctor you didn't spend anything that money gets carried over to the next year You can keep contributing as long as you meet your maximum contribution You are fine and that money can be in that account for I don't care 10 15 20 30 Yes, as long as you're healthy and you don't need to use that money that money continues to grow when you have over $2,000 in that account you can invest the balance. Let's say you have $6,000 You can invest $4,000 and keep $2,000 and so that $4,000 can grow you can buy some really good Maybe some growth stocks or index funds or ETFs, whatever you're comfortable with and invest that money as that money grows Do those gains and not tax at all if you use the money for health related issues So that is where that triple tax benefit really comes in so you put in pre-tax money You invest it and it grows tax-free and then when you spend that money on Health-related issues you spend a tax-free But if you spend it on something that's not related to your health and your uncle Simon is obviously gonna come there and like Hey pay taxes and a penalty usually 10% so you I want you to be aware of that. So HSA account again guys. I want you to not just look at it just from Oh, it's just my health savings account I want you to look at it as an investment bucket so that you can start contributing money into the account if you Don't have enough to put in there put at least just a minimum or if you have enough put in the max So let me kind of break it down here so that you can understand better says let's say you have $4,000 if you take that $4,000 and put it into an HSA account and your tax record is 25% That money goes into that account tax-free So if you have a medical-related issue and you want to spend you have $4,000 to spend on that medical-related issue But if you have $4,000 and you decide not to put it in an HSA account your tax bracket Let's say is 25% the tax that money 25% you're down now to $3,000 And so if you have a medical-related issue you only have $3,000 to spend Whereas somebody that has an HSA has $4,000 to spend So to me those are the dynamics that I want you to understand why an HSA account is really important in building wealth So again, I want if you do a combination of using your rough IRA Using your 401k from your employer and using your HSA all those things put together Those are the things that keep the rich people rich because they take advantage of the system You are not cheating the system in any shape or form You are simply taking advantage of what the laws are the laws allow you to They provide an HSA because they thought people needed the HSA So take advantage of it use all those different buckets when you combine them guys You are on your way to building wealth because it's not just hey invest in the stock market Yeah investing in the stock market is one thing if you have a traditional just a traditional brokerage account That the money that you make in that account if it's over if you buy a stock and hold it over a year and sell it That would be considered capital gains. They'll stay taxi that maybe around 15 percent If you buy it and sell it before within a year That would be considered income and let's say your tax your tax bracket is 25 percent You're gonna be taxed at 25 percent But I want you to take advantage of all these other buckets that protects your money that you don't get tax With HSA or your rough error so that you continue to build wealth like the rich people do so again Let me know in the comment section read about HSA It is there's limit as to as far as how much you can contribute I know those limits have been increased in 2021 if you are a family with a high deductible account You can contribute I think up to seventy two hundred dollars if you are single you can contribute up to about Thirty two hundred dollars. I would have to double double check the numbers, but you can contribute up to Thirty two hundred dollars and if you are over 55 you do what they call a catch up so you can add an additional $1,000 if you were a single so let me know in the comment section what you guys think again guys My objective here is to kind of give you guys some of the tools to start building wealth I don't want you to just think that oh, it's just oh, I'm just gonna put money in the stock market No, there's other things that you can do that will continue to help you be wealthy Let me know in the comment section if this was helpful I'm gonna continue to give you guys some tools like is it I'm actually using to build my wealth here You guys can also continue to build wealth and it's always guys. Don't be a greedy savage and stay motivated