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Hmm how do you forget that? and new numbers

January 28th, 2010 at 02:17 pm

I have had an HSA for a number of years but it seems I never connected that to my networth. While you can't spend an HSA on just anything, its the pot of money I use for all my medical expenses and its a decent sized pot. So from now on I will be adding that in as well since it is money I have access to and use on a fairly regular basis.

I went back and edited through November showing the account so the jump didn't occur at the same time as when I upped the house value.

New Numbers

Okay, I finally have enough pretax items to base things off of gross income. So here is the new budget.

Gross Income 6208
401(k) 475
HSA 83 (167 per month employer)
Taxes 1412
Utilities 103
Entertainment 115 (tv/internet/netflix)
Gas 150
Irr. Bills 100 (phone/car ins.,etc)
PITI 1140
IRA 200
Student Loan 194
Credit card 1000
Allowance 800 (tends to get adjusted)

You will notice this leaves a leftover amount which I alternate between building my savings, paying off credit cards or covering a new lovely car expense or other bill for things breaking.

Once the credit card(s) is gone the excess will go straight into Roths, then into savings for projects.

This puts Needs at 53%, Savings at 32% and Wants at 15% so pretty close to my ideal budget.

Posted in Budget Info, Musings | 8 Comments »

8 Responses to “Hmm how do you forget that? and new numbers”

  1. momcents Says:
    January 28th, 2010 at 02:20 pm 1264688436
    1264688436


    Keep in mind that once you spend your HSA it is claimed as taxable income. I found that out last year once all the forms started coming in and it added several more forms to the 1040. I knew it, but didn't really register it as I wrote tons of checks! We add to ours, but I don't include it in our net worth either.

  2. Caoineag Says:
    January 28th, 2010 at 02:30 pm 1264689025
    1264689025

    As long as its used for its proper purposes its tax free. Since I only use it for qualified medical expenses, it isn't a big deal. You do have to put it on your taxes and I am still waiting for the HSA form on distributions so I can fill out that part of our taxes but its never increased my taxes.

  3. momcents Says:
    January 28th, 2010 at 03:14 pm 1264691645
    1264691645


    You are totally right - in looking back at the 1040 for 08. It is claimed as income, but then the qualified expenses are listed on the itemized stuff. Just seemed to add lots of forms for me to deal with!

    So are you going to include that pot to your net worth?

  4. Caoineag Says:
    January 28th, 2010 at 03:17 pm 1264691850
    1264691850

    I am. Basically it is my medical savings so it should be counted because that money is available to me. It can even act as a retirement account over the long term so since I count those, I should count this.

  5. momcents Says:
    January 28th, 2010 at 03:34 pm 1264692874
    1264692874


    I like the fact that it can be used for possible long-term care coverage (rather than getting an insurance plan to cover the possibility of that). At this point my funding of it is very slow (since regular retirement and kids' education are 1 and 2). I should probably ammend my net worth as well.

  6. Credit Debt Consolidation Settlement Solutions And Services Burnaby Says:
    January 30th, 2010 at 12:53 pm 1264856018
    1264856018

    This information is also new for me. "HSA if spent purposefully for specific domain is tax free. Otherwise, it is taxable." Nice and informative post and comment.............

  7. Jerry Says:
    February 26th, 2010 at 08:36 pm 1267216611
    1267216611

    I liked having the HSA, and it was great for our insurance copays and other necessities. The only thing I didn't like was when it would lead to having unspent money at the end of the year and trying to find ways to use it... or lose it!
    Jerry

  8. Caoineag Says:
    February 26th, 2010 at 10:46 pm 1267224408
    1267224408

    Actually, that is a FSA, not a HSA. In a HSA, the money rolls over from year to year but you can't use it for insurance premiums other than cobra. I have had both and much prefer the HSA.

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