Article: don't use your HSA funds right away.

[peachdragon]

www.cnbc.com/2016/08/19/dont-use-your-health-savings-account-funds-right-away.html

Also, you can save up health expenses for decades and cash them out when you're older. This allows your money to grow tax free, and allows you to withdraw it tax free. This makes it better than an IRA. 

This is especially useful to people who have non working spouses who cannot deduct a spousal IRA contribution. 

[sacattack]

Thanks for this - I have been thinking a lot about this recently. And this is perfect for DH to read to get my point.

I think many people think of this as an FSA, but it really isn't the same.

[gtkim]

Our Financial Advisor told us a couple of years ago not to use the funds and leave them for later, so that is exactly what we have been doing.

[goldengirlz]

I must have a crappy HSA from my last company because it's being whittled down by fees -- as high as $60/year. It's definitely not making that much of a return. It's been kind of useless as a savings vehicle.

[puppylove64]

Another benefit of hsa that most don't realize, it is deducted before ss/medicare tax. 401k money is deducted after ss/Medicare. So if you set it up in investments and don't spend the money, it is better than regular 401k contributions.

[peachdragon]

Feb 3, 2017 9:59:43 GMT -5 goldengirlz said:

I must have a crappy HSA from my last company because it's being whittled down by fees -- as high as $60/year. It's definitely not making that much of a return. It's been kind of useless as a savings vehicle.

That's shitty. You can move your HSA. It doesn't have to be connected to your employer.

[peachdragon]

Feb 3, 2017 10:00:10 GMT -5 @meepmeep said:

Great advice unless you have a ton of out-of-pocket healthcare expenses every year and need every cent of HSA money for those, plus another $10K or so floating on a credit card. #bitterinfertile #withashittyHDHP

Ugh I get it.  We paid a ton of money OOP for fertility treatments. The vast majority wasn't covered. :-(

[pumpkin]

This is interesting to me. Unfortunately my HSA, in my understanding, is such that you have to use the funds within the tax year or they are forfeited, not paid out.

[peachdragon]

Feb 3, 2017 11:10:42 GMT -5 pumpkin said:

This is interesting to me. Unfortunately my HSA, in my understanding, is such that you have to use the funds within the tax year or they are forfeited, not paid out.

Then it's not an HSA.  Is it an FSA?

[goldengirlz]

Feb 3, 2017 10:57:36 GMT -5 peachdragon said:

Feb 3, 2017 9:59:43 GMT -5 goldengirlz said:

I must have a crappy HSA from my last company because it's being whittled down by fees -- as high as $60/year. It's definitely not making that much of a return. It's been kind of useless as a savings vehicle.

That's shitty. You can move your HSA. It doesn't have to be connected to your employer.

I didn't know that! Thanks!

[peachdragon]

Feb 3, 2017 10:15:16 GMT -5 puppylove64 said:

Another benefit of hsa that most don't realize, it is deducted before ss/medicare tax. 401k money is deducted after ss/Medicare. So if you set it up in investments and don't spend the money, it is better than regular 401k contributions.

Is this the case even if you don't have your employer deduct HSA contributions from your paycheck? ie, will the math work out on your eventual tax return for that year?

[puppylove64]

Feb 3, 2017 12:16:40 GMT -5 peachdragon said:

Feb 3, 2017 10:15:16 GMT -5 puppylove64 said:

Another benefit of hsa that most don't realize, it is deducted before ss/medicare tax. 401k money is deducted after ss/Medicare. So if you set it up in investments and don't spend the money, it is better than regular 401k contributions.

Is this the case even if you don't have your employer deduct HSA contributions from your paycheck? ie, will the math work out on your eventual tax return for that year?

No. Only works if it is deducted from a paycheck. If you make deposits on your own, it is an deduction to income on your taxes for federal and state taxes (not ss/med)

[sweetcheeks]

Feb 3, 2017 9:59:43 GMT -5 goldengirlz said:

I must have a crappy HSA from my last company because it's being whittled down by fees -- as high as $60/year. It's definitely not making that much of a return. It's been kind of useless as a savings vehicle.

You can and should transfer into your current HSA.  Two years ago, my company changed HSA banks. We were advised to transfer our savings from the old HSA to the new one or else fees would be charged by the old HSA.

[pumpkin]

Feb 3, 2017 11:23:06 GMT -5 peachdragon said:

Feb 3, 2017 11:10:42 GMT -5 pumpkin said:

This is interesting to me. Unfortunately my HSA, in my understanding, is such that you have to use the funds within the tax year or they are forfeited, not paid out.

Then it's not an HSA.  Is it an FSA?

haha, probably. I just remember being annoyed that it was difficult to use and not as beneficial as I wanted it to be.

[konapoppy]

Feb 3, 2017 10:00:10 GMT -5 @meepmeep said:

Great advice unless you have a ton of out-of-pocket healthcare expenses every year and need every cent of HSA money for those, plus another $10K or so floating on a credit card. #bitterinfertile #withashittyHDHP

Yep!!! We paid 20k OOP PLUS everything in this year's FSA and pulled some from old HSAs.

[mrsfarmer]

Feb 3, 2017 12:00:32 GMT -5 goldengirlz said:

Feb 3, 2017 10:57:36 GMT -5 peachdragon said:

That's shitty. You can move your HSA. It doesn't have to be connected to your employer.

I didn't know that! Thanks!

if your employer is contributing to your H S A you may not be able to.

[whiskeytails]

Lake Michigan credit Union is a solid HSA choice. It requires a small ~$10 donation to ALS to join, but then there are no fees and you can invest in vanguard stocks once you get like ~$10k in the account.

[chpmnk1015]

we have dipped into it for a few things.. but I try and let it grow.. not that there is a ton in there right now.. but would love to not have to touch it if possible... ::knocking on wood:::

[goldengirlz]

Feb 5, 2017 17:18:30 GMT -5 mrsfarmer said:

Feb 3, 2017 12:00:32 GMT -5 goldengirlz said:

I didn't know that! Thanks!

if your employer is contributing to your H S A you may not be able to.

No, this is my last job. That's the only reason I even noticed the fees.

My current job has amazing health insurance. It's a traditional PPO, not a HDHP, so no HSA (only an FSA).

[Wallflower]

Thanks for the tips about moving the funds! I'd left mine alone for a long time and was frustrated with the fees ($5 a month).

To do list - call around to move the account.

[peachdragon]

Feb 5, 2017 21:16:28 GMT -5 goldengirlz said:

Feb 5, 2017 17:18:30 GMT -5 mrsfarmer said:

if your employer is contributing to your H S A you may not be able to.

No, this is my last job. That's the only reason I even noticed the fees.

My current job has amazing health insurance. It's a traditional PPO, not a HDHP, so no HSA (only an FSA).

If you can't find a good HSA to transfer it to, I would probably just use it up, depending on how much is in there. You can still use it for health expenses you might have while you're on the PPO.

[peachdragon]

Feb 5, 2017 19:14:25 GMT -5 whiskeytails said:

Lake Michigan credit Union is a solid HSA choice. It requires a small ~$10 donation to ALS to join, but then there are no fees and you can invest in vanguard stocks once you get like ~$10k in the account.

That's great, thanks.  

[peachdragon]

Feb 5, 2017 19:14:25 GMT -5 whiskeytails said:

Lake Michigan credit Union is a solid HSA choice. It requires a small ~$10 donation to ALS to join, but then there are no fees and you can invest in vanguard stocks once you get like ~$10k in the account.

I just got an email from them...

"Currently LMCU does not offer invests for HSA's other than a certificate of deposit. We are actively working to offer an investment platform by the end of this year for the HSA's."

[whiskeytails]

Feb 6, 2017 9:07:19 GMT -5 peachdragon said:

Feb 5, 2017 19:14:25 GMT -5 whiskeytails said:

Lake Michigan credit Union is a solid HSA choice. It requires a small ~$10 donation to ALS to join, but then there are no fees and you can invest in vanguard stocks once you get like ~$10k in the account.

I just got an email from them...

"Currently LMCU does not offer invests for HSA's other than a certificate of deposit. We are actively working to offer an investment platform by the end of this year for the HSA's."

My bad. That must have been somewhere else. I think I decided to use LMCU until I had built a high enough balance to transfer somewhere that offered that, but in the mean time, have it in a place with no fees.

[AAM2012]

This was a good article, thanks for posting.

This is the first year our employer has offered the option of an HSA and I've been pulling from it here and there even though we could afford the expenses. I didn't even think about the investment factor...totally makes sense!

[peachdragon]

I found this.

healthsavings.com/enroll-now/