On Thu, Sep 18, 2008 at 03:33:40PM -0500, Shawn Fertch wrote: > Let's say I have a $5,000 deductible on my HSA plan. This means that I > have a $5K HSA deposit limit. You can either deposit the money and use it > to pay for medical expenses. Or, you can deposit it and pay for your > medical expenses out of pocket to take advantage of the HSA deposit as > well as the medical deductions. Which of those two options gives you the > best tax write off? As of 2007 the rule was changed and your deductible no longer has anything to do with your HSA contribution limits [1]. Also, I don't believe medical expenses are deductible for most people. I know they have never been for me, because they have to be greater than 7.5% of your AGI, or some similar formula, before any of it is deductible [2]. (perhaps exceptions exist, but I have never been able to take advantage) Dan [1] http://www.ustreas.gov/offices/public-affairs/hsa/pdf/n-08-52.pdf [2] http://www.irs.gov/taxtopics/tc502.html