Page 4 - Future Steps
P. 4
Lowering Your Taxable Income
The chart below helps illustrate the potential tax savings you could earn when you contribute toward an HSA. Let’s
assume you earn $80,000 annually and contribute up to the annual maximum for individual coverage during the year. The
chart below illustrates your potential tax savings year one and tax savings over 5 years.
Without an HSA With an HSA
Total Income $80,000 $80,000
HSA Contribution $0 $1,900 ($3,400 - $1,500 from W&T)
25% Federal Income Tax* -$20,000 (taxed at $80,000) -$19,525 (taxed at $78,100)
Healthcare Expenses of -$1,900 -$1,900 -$0 (used HSA savings)
Funds Left Over $58,100 ($80,000 - $20,000 - $1,900) $58,575 ($80,000 - $1,900 - $19,525)
Tax Savings Year One $0 $475 ($58,575 - $58,100)
Potential Tax Savings Year Five $0 $2,375 ($475 × 5)
* For illustrative purposes only. Federal income tax rates vary; in this example we use 25%. Your tax rate may be more or less than 25% so your
savings may vary from this example. HSA contribution used relects the maximum amount a W&T Offshore employee is eligible to contribute to an
HSA in 2017 if the individual coverage tier is elected.
When you lower your taxable income through HSA contributions, you might also lower your effective tax rate. There are many
factors which inluence and determine your effective tax rate. Please consult your personal tax advisor for tax advice and more
details.
© 2016 Lockton, Inc. All rights reserved.
[Rev 10/18/16] EB\W&T08\EE Comm\Flyers\2017\FutureSteps 5850.pdf
The chart below helps illustrate the potential tax savings you could earn when you contribute toward an HSA. Let’s
assume you earn $80,000 annually and contribute up to the annual maximum for individual coverage during the year. The
chart below illustrates your potential tax savings year one and tax savings over 5 years.
Without an HSA With an HSA
Total Income $80,000 $80,000
HSA Contribution $0 $1,900 ($3,400 - $1,500 from W&T)
25% Federal Income Tax* -$20,000 (taxed at $80,000) -$19,525 (taxed at $78,100)
Healthcare Expenses of -$1,900 -$1,900 -$0 (used HSA savings)
Funds Left Over $58,100 ($80,000 - $20,000 - $1,900) $58,575 ($80,000 - $1,900 - $19,525)
Tax Savings Year One $0 $475 ($58,575 - $58,100)
Potential Tax Savings Year Five $0 $2,375 ($475 × 5)
* For illustrative purposes only. Federal income tax rates vary; in this example we use 25%. Your tax rate may be more or less than 25% so your
savings may vary from this example. HSA contribution used relects the maximum amount a W&T Offshore employee is eligible to contribute to an
HSA in 2017 if the individual coverage tier is elected.
When you lower your taxable income through HSA contributions, you might also lower your effective tax rate. There are many
factors which inluence and determine your effective tax rate. Please consult your personal tax advisor for tax advice and more
details.
© 2016 Lockton, Inc. All rights reserved.
[Rev 10/18/16] EB\W&T08\EE Comm\Flyers\2017\FutureSteps 5850.pdf
