The Double Tax Shelter

This time of year, many in the workforce are going through benefit open enrollment periods.  When it comes to tax shelters, it’s wise to consider a Health Savings Account (HSA).  An HSA must be paired with a high-deductible health insurance plan, which for some people does not help them effectively manage their healthcare costs.  But for many affluent families, the tax advantages of an HSA far outweigh any short-term potential increase in out-of-pocket healthcare expenses.

HSA contributions are considered an “above the line” deduction, meaning they are not included in adjusted gross income (AGI) on your tax return.  This is effectively very similar to the front-end tax reduction you might receive in a pre-tax 401(k).  But it gets better.  As long as funds withdrawn from an HSA are used for qualifying healthcare expenses, those funds can be withdrawn from the HSA completely tax-free.  The tax break here is very similar to what you might receive in a Roth 401(k) or Roth IRA.

In fact, the HSA has both the early tax benefits of a pre-tax 401(k) combined with the future tax benefits of a Roth 401(k) or Roth IRA.  It may sound crazy, but the tax savings effect of an HSA is the same as if you had a tax-free Roth 401(k) with a match from the federal government equal to your current tax rate.  The HSA is the only double tax shelter ever created!

In order to maximize this tax-free growth potential, it can be wise to consider investing an HSA in sound investments.  Since you can withdraw funds from an HSA for qualifying healthcare expenses incurred in previous years, you can let the tax-free growth accumulate in the account for a long period of time.

HSAs have other rules to consider, so consult with your financial and/or tax advisor to explore all your options.  Just don’t overlook the HSA, which allows both your upfront tax savings and the potential long-term, tax-free investment growth to potentially help subsidize your healthcare expenses in retirement so you can spend most of your retirement income on other important needs and wants to support your desired standard of living.


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Jeffrey T. Dobyns


President, SageSpring | Financial Advisor, RJFS 

Jeffrey T. Dobyns

President, SageSpring | Financial Advisor, RJFS

Beyond crunching numbers and investment strategies, at SageSpring, we’re about building relationships. When you encounter Founder & President of SageSpring, Jeff Dobyns, it’s easy to understand why this is at the very heart of who we are as a firm. You won’t find stuffy formalities with Jeff; instead, you can expect to find him sharing a warm smile, communicating a compelling vision, or patiently untangling life’s complex challenges with clients. He believes in truly getting to know clients, understanding their aspirations and priorities, and navigating their financial plans with a tailored, comprehensive approach. Our team members have often been caught taking notes on Jeff’s effortless relationship skills from a distance, and we admire them for striving to learn from one of the best. 

Jeff’s financial expertise and wisdom are the perfect match to his innate people skills. Jeff holds the prestigious CERTIFIED FINANCIAL PLANNERTM certification, Chartered Life Underwriter (CLU®), and Chartered Financial Consultant (ChLU®) designations, and has held executive positions with financial planning firms for more than two decades. 

His dedication extends beyond the office to the boardroom and the local community, where Jeff is passionate about giving back. He serves as Chairman of the Board of Men of Valor, a prison ministry and mentoring program. Jeff also serves on the board of Send Musicians to Prison, which shares hope, healing and restoration with the imprisoned through musicians & artists. Jeff actively supports other initiatives in the community by sitting on the board of The Signatry of Middle Tennessee and the Halftime Institute of Nashville. 

Witnessing his four children, Gracyn, Hunter, Tanner, and Logan, excel on the field is almost just as rewarding, if not more, than celebrating the victories of seeing his clients overcome obstacles and build wealth. Spending weekends boating on the lake, hiking mountain trails, and fishing with his family are the moments Jeff cherishes most. It’s this grounded perspective that reveals the true meaning of wealth for Jeff: not just numbers on a page, but the freedom to create experiences that enrich your life and the lives of those you love. When you choose the Dobyns McMillin Wealth Team, you choose more than financial expertise. You choose a partner who champions your dreams, celebrates your victories, and walks besides you on the path to achieving your unique goals.

**Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER TM, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.