1. The IRS web page is not authority. See the Internal revenue code
§6654. Failure by individual to pay estimated income tax
(a) Addition to the tax.
Like I said, it is officially (by law) called an addition to tax, not a penalty.[0] Further, it is calculated as an interest charge. There is not any further interest charged on the interest. Yes, there are actual penalties such as Failure to File/Failure to Pay that do accrue interest, but this is not either of those.
2. The HSA is just a holding account. You can either pay for health expenses such as insurance pre-tax each year, or you can put it in a HSA and delay the payment. In either case, you only get one tax deduction, not two. The ridiculous claim is to say for a $1K contribution to HSA, you get a $1K tax deduction, then you get another $1k tax deduction when you take it out - not true.
Comments
1. The IRS web page is not authority. See the Internal revenue code §6654. Failure by individual to pay estimated income tax (a) Addition to the tax. Like I said, it is officially (by law) called an addition to tax, not a penalty.[0] Further, it is calculated as an interest charge. There is not any further interest charged on the interest. Yes, there are actual penalties such as Failure to File/Failure to Pay that do accrue interest, but this is not either of those.
[0]https://www.law.cornell.edu/uscode/text/26/6654
2. The HSA is just a holding account. You can either pay for health expenses such as insurance pre-tax each year, or you can put it in a HSA and delay the payment. In either case, you only get one tax deduction, not two. The ridiculous claim is to say for a $1K contribution to HSA, you get a $1K tax deduction, then you get another $1k tax deduction when you take it out - not true.