I was looking for a place to enter annual HSA contributions (allowable until you sign up for Medicare) post retirement. I have contributed for years to my HSA after retirement in order to decrease my MAGI. The only specific place I found for HSA contributions is the Employment Income Streams section. So I set the Stop Age to 65 and entered my annual HSA contributions in the 'Personal Contributions to Health Savings Accounts' field. However, I noticed Pralana decreases the IRS-limited fixed contribution value due to inflation in future years as shown in the Tabular Projections -> Income -> Personal Contributions to HSAs column, unless I enter a corresponding annual increase in the Employment Income Streams section. Am I handling this correctly?
Yes, you're handling this correctly. If you want employment income to remain at a fixed level while adjusting the HSA contribution for inflation (for example), you can put them on separate employment income streams.
Stuart
Thanks Stuart. You've created a great tool, and it's helping me tremendously with planning Roth conversions over the next several years.
@smatthews51 Hi Stuart, I am doing this, too.
I created a new income stream in Build>Income>Employment Income and set it to $0 and marked it to increase at my inflation rate of 3%. I then put the family max, $8550 into "$ Personal Contributions to Health Savings Accounts."
I see the contributions in the account and it definitely grows over time. But despite setting the income stream to $0, I also see my Employment Income listed as $8550 on the Sources of Income Graphical Projection, which would seem to negate the room the contribution frees up for additional MAGI space to make Roth conversions.
Is there a way to have this HSA contribution come from my cash or taxable account, have the tool recognize it to free up conversion space and not have Employment Income associated with it?
Not only would that allow me to transfer taxable funds to what is essentially a tax-free account for health expenses without needing earned income, it would also let me boost my Roth conversions by the same amount, a two-for-one deal I'd very much like to take advantage of if possible!
