Updated almost 5 years ago on . Most recent reply
Health Insurance and Financial Freedom
Once you reach "Level 1" of financial freedom (as Brandon would say), what do you do about health insurance for your family? Thanks.
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@Nate Bell an S-corp is a pass through entity from a tax perspective. You cannot leave money (i.e. profit) in it at the end of the year. However, you can pay for your health insurance via the company and then deduct that cost on the personal side. It is pretty complicated and you need to discuss with a CPA. @Joe Splitrock you are way off on the cost of paying for health insurance out of pocket. For a family of 4 a "normal" policy with a fairly large deductible will probably run you about $2000 a month if not more with costs going up if you are older. Plus insurance rates go up every year so you have to keep shopping around to try to keep your costs stable. I have been buying health insurance personally for 20 years and it is an incredible saga of pre-existing conditions, pre-negotiated rates, HSAs, and the ACA.