What could you buy with an extra $12,243?
Take a luxury vacation with (or without) the kids?
Buy that motorcycle you’ve had your eye on?
Install the jacuzzi tub you nixed because it put you overbudget?
Now what if you had extra $12,243 EVERY. SINGLE. YEAR?
Sound good?
If you’re maxing out your 401k’s and HSA every year, that’s what you’ll get.
Our average Financial Zen Member makes $175,000 per spouse. That means they pay about 26.5% in
federal and state taxes.
If both spouses are maxing out their 401k contributions ($19,500 each) and HSA contributions ($7200
total) then they are deducting $46,200 from their taxable income.
$46,200 * 26.5% = $12,243 per year in tax savings
If you earn more than $175,000 then you save even more in taxes.
And if you’re single, then you’ll save exactly half of that in taxes – $6,121.
So if you’re not maxing out your 401k and HSA, then run don’t walk to log in and increase your
contribution percentages.
