💡Open a Health Savings Account (HSA) to save taxes and invest in what you know best
🔥Take advantage of the Roth IRA for tax-free growth and withdrawls in retirement
💰Maximize your 401k match and invest in your Health Savings Account (HSA)
🎓Use 529 plans and Coverdell accounts for college savings
🏦Consider life insurance as a tax-deferred or tax-free investment strategy
What is the best strategy for W2 wage earners to save on taxes?
—The best strategy is to open a Health Savings Account (HSA) and contribute to a Roth IRA.
Are HSA contributions tax-deductible?
—Yes, contributions to an HSA are tax-deductible, and the growth is tax-free when used for qualified medical expenses.
Can I contribute to both a 401k and a Roth IRA?
—Yes, you can contribute to both a 401k and a Roth IRA, but the contribution limits are separate.
What are the benefits of using a 529 plan for college savings?
—A 529 plan offers tax advantages and can be used for qualified education expenses, including tuition, room and board, and books.
How does life insurance provide tax benefits?
—Life insurance can provide tax-deferred or tax-free wealth accumulation and the ability to borrow against the cash value of the policy.
00:00Introduction and overview of the top 5 tax saving strategies for W2 wage earners.
05:42Explanation of the benefits and requirements of opening a Health Savings Account (HSA) for tax savings and investment opportunities.
12:16Discussion of the advantages of contributing to a Roth IRA for tax-free growth and withdrawals in retirement.
18:40Explanation of the 401k match and out strategy, maximizing contributions to take advantage of employer matching and investing in a Health Savings Account (HSA).
25:58Overview of college savings strategies, including 529 plans and Coverdell accounts.
32:24Discussion of the tax benefits of life insurance as a tax-deferred or tax-free investment strategy.
38:55Conclusion and recap of the top 5 tax saving strategies for W2 wage earners.
