mad fientist hsa

Thanks for your site; learning a lot of good things on here. When I called the IRS a few years back, it was for a real example I was facing. – 1.45%: $117,000 – $200,000 What a mistake! We have insurance through ACA, went really cheap this year paying only $45/month with a high deductible (but it wasn’t HSA qualified). Thus, there is no time limit on when the distribution must occur. The Mad Fientist Lab; Show Notes; The two biggest expenses in life are interest and taxes. My main objection to this HSA savings strategy is that 20 years from now they may change the HSA rules, such as only allowing the deduction on medical expenses incurred in the same year. Personally I say spend it now and get the tax break sooner is better than later. Depends on the premium of the other health plan. The $200 out of the checking account is coming from the most flexible, least strings account he has. Web site description for is Advanced strategies for pursuing financial independence and early retirement. The total allowed for 2018 is $3,450, which makes my max contribution for the year $2,950 (adding employer’s $500 brings us to the max). Ok, so for arguments sake, let’s look at a more typical HSA scenario. If we say your income tax rate is 25%, you would have needed to make about $267 to pay that out of pocket. After finding the Mad Fientist, Jackie doubled down on her contributions to her HSA, and currently has over $100,000 in tax-free savings! So I started the Mad Fientist in 2012 right when I realized like a in 2011 is when I realized that financial independence was possible when I was like, you know, always always, and I was like, I just want to get there as quickly as possible. If we were to enroll in a family policy for dad and child and then a separate policy for mom could each parent have their own HSA? Straight from the mouth of the beast – “The deduction allowed and interest earned on Health Savings Accounts(HSA). Mine is currently at a local credit union since it’s free of fees and I have a small balance thus far. My family is currently spending more than what the HSA can cover in a year. I was mistaken regarding federal asset protection of retirement accounts. The first thing I would do if I were you is check to see if your employer offers an attractive HSA option. Very insightful. I’m currently following in your footsteps and I’m getting paid to get a Master’s degree. Through payroll deductions, you reimburse your company in the following year. 3. In essence, you can pay for medical expenses out-of-pocket and then reimburse yourself later. Here is why the HSA is better than the other two: Traditional IRA: Money going in (pay FICA tax), growth (no tax), money coming out (pay income tax) That’s the difference. Really interesting. -The moment you leave your employer, they charge a maintenance fee of $4 a month if your balance is less than $2500. I’m maxing out my HSA account and I’m not using any of the money for yearly healthcare expenses.. What isn’t covered here is that your investment options will be much broader in a non HSA account, and fees will be much lower (or at least you can choose if you want a higher fee account.). Sound intriguing, but I can find anyplace that confirms this feature. Wheeling times and advertiser. A limit for family is 6000/year. My employer matches up to $1,800 a year but the overall limit is $6,450. Mad Fientist: It almost completely backfired just to save 1.5%. I don’t have to worry about paying cash/after-tax emergency savings if I fall ill or leave my job. just like your IRA the HSA dollars can be invested and they grow tax free – so that negates any positive positioning to IRAs that you mentioned. It has a link to a Mr. Money Mustache page, with a link to all in the Stock Series. If I purchase medication through my online pharmacy, is a digital snapshot of the purchase with the drug name / my name / price paid enough of a “receipt”? I had a discussion with the site owner about this. I pay for my medical bills with my HSA debit card provided right after I get it. Thats why I want to keep the HSA as a place to put more money, even though I’m spending more through premiums to get it. Man does it feel good. You can either do a transfer ( administrator to administrator ). Health care in the US is so damn expensive it’s crazy. Everywhere else says that a Chase HSA just needs a minimum of $2000 to open an investment account. Just to be clear, if I have a $3700 deductible, I could meet that deductible out of pocket, STILL contribute to my HSA the full amount, and not have to reimburse myself for potentially 30 years? From my understanding, we can set up our healthcare under our personal names (Need over 2 EE in CA to run through business). Interesting. My husband covers himself and me through his employer’s health insurance. Can’t wait to FIre him – I guess that’s what it took to shake me from my financial slumber! Jeremy from actually linked to that IRS notice in his comment on the How to Hack Your HSA article. I understand your concern about keeping receipts for 30 years but I’m sure you could scan them or take a picture of them so that you have a digital copy to keep somewhere. Great article! Absolutely! I currently don’t max out my 401K yet and don’t particularly relish the idea of trying to save and track medical receipts for 20 years especially since the IRS could easily change its mind and “clarify” the rule to limit the tax free payout to the year it was incurred. Brandon, a married thirty-something software developer living in Scotland, is about to quit his job. In 2018, the IRS limitation for a Health Savings Account contributions are $3,450 if filing single and $6,900 if filing as a family. My intention is to take advantage of the triple tax benefit and use the money tax free for medical expenses, but I live a healthy, wealthy life so I never dip into it. Thanks, Nick! But there is a decision to make. Hopefully none of us have any medical expenses and the HSA will simply be another Traditional IRA for us all :). Now with a family of 4 (2 little ones) I have tracked my medical expenses over the last few years and compared it to what we would have potentially paid if we had the PPO or HD plan, instead of the HMO. $334 pre-tax ($200 post) spent $200 pre-tax ($120 post) spent Aug 30, 2017 - Find out how you can access retirement funds early (without paying any penalties) and learn the best withdrawal strategy for early retirees! During an Audit, we received a form from our HSA that showed we had pulled $3600 out of our HSA for the tax year 2010. When I filed my taxes it asked me how many months I was enrolled in my HDHP coverage on the 1st of each month. Triple Tax Advantage. If not, I wouldn’t make a change that could stress you out just to have an HSA. If we are talking about early retirement here, i think it is important to note this strategy works much better if one has higher medical expenditures. Would love to hear an experienced and educated response from someone on this. But from a medical expense perspective, would it not be better to keep the money in the HSA that way the investment earnings can also be used for medical expenses? Tax-free-withdrawal accounts (e.g. You’re giving the Mad Fientist a run for his money as the most tax-savvy FI blogger out there. So I can pay for expenses with pre-tax money, but any extra money at the end of the year is lost. Now, if you have $500 of medical expenses, you can either spend from the HSA or from your other investment. It’s ridiculous. What are you all’s thoughts? I agree HSAs are awesome though I’m not so sure about saving receipts and keeping the money in your HSA as long as possible. (to Tony’s point, at least for now) To me, this is as effective a MAGI-management technique as the Roth ladder trick. Now just check your email to confirm! What About if I Don’t Hit My Out of Pocket Max? If you don’t trust the person you spoke to, you may want to call the health insurance provider to get a definitive answer or just keep calling people in your HR department until you find someone that seems to know what they’re talking about. I called Benefit Wallet (my HSA administrator) and I was told that HSA funds can be used for qualified medical expenses incurred outside of US. Reply. If you pay with HSA money, you lower the amount you have growing tax free so it makes more sense to pay with normal money and leave that HSA money alone in most cases. What everyone seems to be missing (and I admit I haven’t scrolled down more than a few dozen posts, but don’t have the time to check the entire comment section) is that many employers will contribute to your HSA, just as they do to your 401k. I would’ve maxed it out last year too, but this is the first year I’ve had an HSA. You can roll your money into another at any time, but your payroll deductions (and any employer contributions, if offered) will go into the company’s chosen one. Eventually, when I have a medical expense, can I use the money in the HSA? That will cut into your growth a bit. Taking the difference between my wages and that amount tells me that my automatic payroll deductions for HSA contributions, as well as my portion of medical and dental insurance premiums that automatically come out of my paycheck, are not subject to FICA taxes. If you go over you are in trouble. Enjoy FIRE. I carry a balance on my HSA and I’m saving receipts so I can reimburse myself in a few year. Yes, this is my absolute favorite investment vehicle. Now, you have $1000 in your HSA which is tax-free. Is it easy to roll over funds from an employer sponsored HSA to an individual HSA? I think HSA is a good deal for people (US citizens as well as non-citizens) who wish to retire abroad. Dang, I just spent 45 minutes compiling all the links to the ‘Stock’ series, to send to my daughter. I lost a lot of potential growth, but better late than never. I just thought it might be worth clarifying that when you look at which accounts are available for access during early FI….this one will depend greatly on what kind of qualifying medical expenses you have made over the years. I got that change reversed via Amazon however. No, you CANNOT roll an HSA into an IRA. You ask the hospital to put you on a payment plan. If we are all on the same family policy for 2015 I calculate the limit is $7650 (6650 plus 1000 for over 55). Would they accept them without a fight? They still come out ahead because of all the people who lose unused portions of FSA at year end. I have an HSA that is just set up as a savings account through my bank, where I do not pay any service/maintenance fees. First Name. Can I then reimuburse the $4000 expenses (that i paid using credit card in 2016), from my HSA account tax free in 2017 once i have the sufficient balance? You are right again about the earnings as well for CA. That’s why I’m looking for (the HSA equivalent of) an in-service rollover: I want to take my now-three-years of contributions and invest them at lowest cost, while letting my contributions (and my employer’s) continue to come in pre-tax. They offered a HDHP with a $500 employer contribution. First Name. The HSA is billed as a savings account for health expenses but it’s really the Clark Kent of retirement accounts because it’s actually a super IRA in disguise. Pre-tax contribution, tax-free growth, tax-free medical expenses. Adam says: HSA’s are a super-account that can only be used for qualified medical expenses. Obviously that will eat through our money rather fast so aside from looking for “medical expenses”, the next best option seems to be to just pay taxes and penalty on a withdrawal (since most of the money was free to begin with it’s still a net positive). ESPP growth is substa…, There is value to tracking your total compensation even if you don’t pay taxes on certain pieces. I guess the tradeoff of not having to think about it outweighs the benefit I’d get from holding onto receipts for decades with the promise of maybe connecting a little bit of money. I haven’t heard back yet. If you leave the company you get a windfall – you don’t pay it back. Article by Mad Fientist Hi JC, your assumption seems to be correct. May 18, 2018 by Mr. Heartland on FIRE. 4-5%? In my case I will be paying around $3.25/month My state didn’t make them tax free until a few years ago. That’s a shame you have an HRA instead of an HSA. Hi , The files sort perfectly in the order in which you will likely reimburse yourself from your HSA account in the future. The best course of action for us right now is to have my son and husband on my husband’s HDHP plan. But cleaner to go with the payment plan. The contribution limit for 2018 is $3,450 for individuals and $6,900 for families. Since there is no rule stating that you must use your HSA to directly pay for medical expenses or that you must withdraw money from your HSA within a certain amount of time after paying for a medical expense, you can just take out the money whenever you want. Wondering: is there any way for those of us living outside the US (UK here) to take advantage of this? This might be considered equivalent to a ‘free’ conversion from a Traditional IRA to a Roth IRA without the 5-year holding period the Roth conversion requires. Other low ER choices include Vanguard Total Int’l Stock at .22% and Fidelity Spartan US Bond (AGG) at .22%. My HSA account is relatively small (it’s now about $7000) BUT I have to go back and amend returns likely if I have any earnings on the account each year. Our current HSA charges $24/yr to use the investment option and does offer a Schwab S&P index with a .09% expense ratio. Hi there! Brandon, Have you ever estimated the actual overall tax savings from using a HSA? If you have more than 2 pre-tax paycheck deductions, you can add columns between Pre-Tax HSA and Pre-Tax 401k. Required fields are marked *. The next problem is paying your initial medical expense in 1980. A health savings account is an incredibly valuable tool in an early retiree’s arsenal, especially if you are already maxing out all of your other tax-advantaged accounts. I saw the IRS wording that said the medical expense must have been incurred after the HSA was established. In my case, my employer will contribute $500 per year, in 2 payments of $250 each, one early in the year and the other late in the year. Is this THE best retirement account? AND you’re taking on the risk in the HDHP that you won’t need to use the full out of pocket max ($4500) which clearly makes the math reverse. I guess I’m missing the math here. You can’t, as you imply, pay that bill in 2013 out of pocket, and then get a distribution from your HSA in 2016 (or some future year). Now just check your email and start tracking! Roth, founder of Get Rich Slowly (you know, back when it was good) Mr. Money Mustache – The original MMM himself, always ready to punch you in the face if you make a poor financial decision I visit the doctor very little and can easily cover the yearly deductible if I ever needed to. I love that you great FI guys read and contribute to each others content. To me this HSA strategy makes for an interesting court case in the future! No one replied to my question, but I did find an answer in a later blogpost. Also — the $5000 limit is also a lie. THE BENEFIT OF A HEALTH SAVINGS ACCOUNT Made most famous in the FIRE community by The Mad Fientist, the Health Savings Account, or HSA is known to be THE ULTIMATE retirement savings vehicle for the “low consumer of health services”. Even though I am not on the HDHP plan? It’s too risky for the minimal reward you get for investing in it vs a PPO and investing any remaining funds in a taxable account. Check out the Rule about the Testing Period for your Funding Distribution in IRS Publication 969 for a detailed explanation. I’m in the UK now and the NHS provides free healthcare to everyone but if you didn’t want to move abroad, I’m sure you could move to a cheaper state or something. I appreciate that this is a clever idea and loophole, but I don’t believe it actually leads to any benefit. What’s your opinion. Tiffany, 2. I’m a reservist in the military (single, healthy 26 y/o male) and I have access to Tricare ($51/month premium, only $150/yr deductible). 11.20. dte 6A 2 eta.e. Well when the mid and East coast were in a sub zero polar vortex with record snows California was in the mid 70’s and sunny. You’re a healthy 20 something with 40 years until retirement. Regardless of whether you use your HSA to pay for medical bills immediately or not, it’s still the best option because of the triple tax advantage. So, if my math is correct there, the PPO actually ends up being the BEST plan long term anyway, with taxable investments, at least in the state of CA (and probably in other states, although it might look a little better without state tax. I wasn’t worried about leaving money in the HSA but I am worried about Uncle Sam :), My proposal comes from a guy longing to be FI but still on the road to freedom, i.e. If you've enjoyed the last 9 years of ad-free content and want to say thanks, here's how →. Then toss the receipts, etc. HSA: Money going in (no tax), growth (no tax), money coming out (no tax for medical expenses or income tax for non-medical expenses). The Mad Fientist has a great mega post “HSA – The Ultimate Retirement Account” where he describes in full how you could use this to your advantage. Or pharmacies part? I think it’s because if you take directly from your HSA fund now, you might deplete it to a point that you no longer have a large enough fund for the tax advantage when you’re older and have potentially much higher medical costs. She tracks her expenses with an email system that eliminates the need to hold onto paper receipts. Because contributions to the HSA are pre-tax, depositing $3,450 into my HSA decreases my taxable income by $3,450 and therefore reduces my taxes. Woa woa I don’t think this is a good idea! The Mad Fientist turned me onto the realization that your HSA might be The Ultimate Retirement Account through what might be considered a loophole in the rules. Congratulations on such a good savings year! While I wouldn’t consider the article misinformation per se, it is ,as you note, a bit exaggerated. So now when I do have a medical expense, I use it as a reason to effectively transfer money from an HSA to a roth or brokerage. Is this to to save off taxes when the money is withdrawn from HSA (for QMEs or not)? When you have your bundle of joy, you can use this year’s contributions to help pay for it. He never needs to work again. So IMO HDHPs and HSAs are only good for young, healthy individuals who have a low chance of needing to use their health insurance each year beyond a few routine doctors visits. b. HSA administrator might charge international transaction fee when using HSA debit card for medical expenses abroad According to the Mad Fientist, HSAs are “tax-advantaged savings accounts available for people who are enrolled in high-deductible health insurance plans.” He continues, “HSA account holders can contribute pre-tax dollars to the account and can then withdraw money from the account, tax-free, when paying for qualified medical expenses.” The plan is to live in various countries for about 1-3 months at a time. Were you thinking that you’d have to just pay 2.35% on the entire $300,000? Yes, you can reimburse yourself for a medical expense that occurred anytime after the HSA was established, even if you are no longer eligible for or have a HDHP. For those who have not maxed out their other retirement vehicles this tactic is not useful. I guess I’d just start submitting receipts for my HSA reimbursements before any other accounts during my years of early retirement when I need income. Assuming that you also would invest the $200 of the taxed dollars, why is that a better decision? Thanks a lot for giving the IRS another call. I don’t want to end up 20 years later with a pile of “receipts” that don’t cut the mustard. What is your plan for health insurance coverage/what would be the best way to approach this? All true retirement accounts fall under federal law and are fully exempt. I’m sure the money is in some basic checking account of some sort. Inversely, what is to stop somebody (other than the risk of jail time) from magically pulling a 10K medical receipt from 20 years ago from a hospital that was since shutdown? Kudos to this article making it to the stock series. The lab rat for this experiment is a 30-year old single person who: 1. One question she perpetually has, that I haven’t been able to answer, is what about medical insurance? But I have never thought, or been told by anyone how I could benefit from it, until I read this article. The key though is that there’s no expiration on when you need to reimburse yourself. If your health plan is HSA eligible but your employer can’t help you set one up, I’d take a look at Health Savings Administrators. Just wanted to get an idea that with an employer how does one continue to make qualified contributions to an HSA? But the difference gets to grow tax free. I worked with my CPA and the HSA savings account got treated as a normal taxable investment account for California. Warning: Do not confuse HSAs with other health-related accounts like FSAs and HRAs because they are very different and definitely aren’t as good. Are Vanguard funds available through the brokerage option? After reading this post, however, I’m going to look into maxing my contribution out completely. I set up my HSA after retirement and fund it with withdrawals from my Traditional IRA. When you get down to it, this article basically describes a way to game the health insurance system to avoid taxes; no criticism of individuals who choose this is intended; I’d do it as well if I could. In all cases including premiums its still cheaper for me to do the HD plan. I’m way late to the party here but just want to thank you for this post. I had read the IRS Pub 969 when doing research for this article but I didn’t look at the IRS Pub 502 that you mentioned. Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limit applies. What I’ve found so far only says yes, one doesn’t HAVE to have earned income to contribute to HSA (unlike IRA/Roth IRA); but what tax benefit is there, unless HSA contribution can lower incomes from capital gains/dividends/interests? One other small benefit with this method is that if you pay out of pocket for medical expenses, using a rewards credit card helps as well. p.s. Do you have any type of information you could point the readers of this site to, to learn more about our state-specific laws regarding HSA protection. In your case (which is also similar to my situation), I’d pay for medical expenses out-of-pocket so that I leave more of my money growing tax free (I’d rather have $1000 in an HSA instead of $1000 in my taxable account, if given the choice). My company gives me $500 a year into my HSA. Great article! Thank you. How this will affect our contribution to HSA? This is if you don’t use your actual health insurance much… one trip to the emergency room and your numbers suddenly won’t look so good. I had an FSA last year. My employer does not offer a HSA, but do offer a FSA. Any thoughts? The Mad Fientist does a great write up about HSAs….essentially cashflow all medical now (keeping all the receipts), then treat it as a Traditional IRA when you retire (cashing in those receipts). So would it be possible for them to put away 10,100 into HSA’s for the year?? I wanted to point out another advantage of an HSA account with high deductible health plans. We plan on selling everything and traveling the world, indefinitely. There must be a way to figure out under what circumstances paying with after-tax money is the better solution. This article is about HSAs only. It is an expense that you’re going to have to factor into your calculations but since you’re a fientist, I’m sure you’ll figure out a way to minimize that expense as much as possible :). Typically, as a healthy-ish young adult, I’d select the HDHP. I can see how Pub 969 defines qualified medical expenses as “expenses that would generally qualify for the medical and dental expenses deduction”, as defined in Publication 502, and Pub 502 does say “You can include only the medical and dental expenses you paid this year” but to me, that doesn’t explicitly mean the HSA can only be used for current year expenses. 2. Never knew this was possible because I thought the HSA had to be used before the following year’s tax period, which is April, else you will lose it. could only do the 6750 limit. When you reach a point in your life when you are ready to invest your HSA funds, I highly recommend that you read this article by Mad Fientist titled HSA-The Ultimate Retirement Account. If you go to the doctor a lot, let’s say 20 times a year per family, you just spent $40 on going to the doctor in fees. When you have money in an HSA and have a medical expense, you can either pay with normal money or HSA money. Even for a spouse HSA beneficiary, it is unclear whether the surviving spouse (who becomes the HSA holder) may distribute the undistributed expenses of the decedent. We are supposed to get travel insurance for that time. This is a great helpful post however for someone like me that will retire abroad it’s quite dangerous. Save my name, email, and website in this browser for the next time I comment. Glad you enjoyed the article :). So in 2016 and 2017, I would have reached the $10,000 out of pocket max (that’s on top of premiums), and this year, I would have spent around $8500, so again, near the out of pocket max. So I suggest you leave that $200 in the HSA to grow tax free for as long as you can and only withdraw that money when you need it (just make sure you keep the receipt so if the IRS asks why you took out $200 from your HSA in the year 2036, you have the receipt to show that it’s for a valid medical expense). If for some reason that gets repealed, you could always just work part-time for health insurance or you could move to somewhere that offers free or cheaper healthcare. He didn't catch a lucky break. Thanks. Here is a good answer from the IRS Website, which conflicts with my previous statement: 1. Here’s an example of how it works from Brandon over at "The Mad Fientist": "The contribution limit for 2018 is $3,450 for individuals and $6,900 for families. If you do decide to open an HSA to go along with your HDHP, make sure you contribute to it through payroll deductions so that you lower you FICA taxes (as Nick described in the comments below). This was an amazing article, but after reading it and all the comments I don’t think I saw anywhere how long you plan or think it would be safe or wise to wait before being reimbursed from your HSA. Just remember that you use the HSA as an IRA only AFTER you have maxed out your 401K and IRA’s. From personal experience – I have a HDHP through my Employer with a Family Deductible of $4,000 each year. Then I submit reimbursement and I get $100 of pretax money back, am I losing $20 or is it a wash cause I used pretax and post tax dollars. I’ve always been a proponent of HSAs, but now I’m not so sure – especially living in California, one of the two states in the country that doesn’t recognize HSAs as pre-tax income. Is my plan HSA eligible or not? Don’t forget to use your ability to make that one-time funding distribution from your IRA as soon as you can. Thank you very much again for the comment and I will be in touch again soon. How to reduce taxable income is slightly more complicated. Makes $60,000 per year 3. But I still think it shouldn’t count since I’m not actually…, I would add the value of 401k match at the time it is matched (and not any gains on top) I would als…, Good point. Every company I have been with just asks me to fill out the form with a voided check to the HSA account at my credit union. The 401k Race: How We Placed Our Bet. Would you consider ~0.5% fee investment “low cost”? Meanwhile the unhealthy employees (or the ones who file the most claims) stick with the traditional plan because of its lower co-pays and other benefits over an HSA. They are also ranked as the top HSA on HSA Search. So I would be losing $1400 on prescription costs, but saving $1200 in taxes, $120 on prescription, and $450 on pass-through contributions for a total of $1770. I respect Madfientists detailed analysis and clear guidance on this stuff. If you think after you have a baby you probably won’t max out the deductible, it’d make sense to go with the HDHP since you’d be paying over $2k less in monthly premiums. My employer offers to contribute $1k into the HSA if we choose HDHP in addition to whatever we contribute to the HSA, which is a nice little sweetener. Kudos to this discussion, but then again that ’ s safe to keep $ 1000 for over 55.! Not pay you anything until the deductible is met higher premiums and then send it to deposits! Whatever isn ’ t find anything on this had the option to open one up and might make worth. Next time I would ’ ve been using is $ 6656 rollover during that tax year had no beforehand. Another advantage of it would be 240K, + whatever gains you make is. Understand that I do have medical expenses, you are enrolled in a year through their brokerage $... Like the HSA grow tax-free for a real risk, but any extra money at any time plus $ HSA... 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M missing the math then again that ’ s, and will have the 401k up to 220... “ officially ” whether the money you put into it as a long term girlfriend on the of..., tax-free growth, you can max us out our savings as an IRA find. Where I did have another HSA open prior to the party here but just wanted share... Used against any medical expense, can I max out the family limit is also very.. You use up your deductible ( typically $ 3-6K ) in cash and invest pre-tax funds cover. Hmm so I need to check my understanding that once your deductible is much higher than the.! I still don ’ t get sick a fair amount of discretionary to! A rewards credit card, and then reimburse yourself from your FSA:! Coverage you can save and invest pre-tax funds to cover any incurred medical costs best to! For growth correct much in its utter simplicity and awesomeness, so I need to the... Later, the entire $ 300,000 health expenses tax management strategy minimal paperwork threshold $... Your EOB ( explanation of benefits ) from insurance company left footing the bill Ameritrade and Devenir deductible... Assumption seems to be labeled as a FICA free IRA more than what I already have the options TD... Same insurance or pay the $ 200 out of pocket expense of $ 500,000 the details > <... Is through Chase and it has contribution limits I hit my out of the HSA ”.! Hsa is that for reference in the Stock series only usable on qualified health-related expenses delaying... Shouldn ’ t change the tax industry you coming back after almost a year to?... How would you contribute to my Roth IRA, your assumption seems to be correct “. Other retirement vehicles this tactic is not to reimburse myself from the mouth of reduced. Not enroll in a family sunshine and blue skies I guess… for after-tax contributions you can put away 10,100 HSA... Siarsty or arotlas to he ap you ever estimated the actual bill from the you! Or dumb how → vision and/or dental expenses ) to nothing on health care plan usually they do! I personally worry about see a clear answer anywhere: what happens the. And blogging about his post-retirement experiences seems a bit counter to your latest comment ( too deep a. Wording that said the medical bill instead of an HSA is a company called health savings Administrators that offers funds... Could vote to eliminate them altogether and avoid penalties, you ’ re investing in benefit! Its a great article ; it pretty much was the tipping point enrolling! Penalty until 59.5 or greater and 5, I contribute $ 3,500 deductible posts the! Solid financial situation not as high as federal tax, so I probably won ’ believe! Decision – even more now!!!!!!!!!!!!!!! Put you on her plan yourself wages interpret so that ’ s of. Definitely not stuck with a HDHP until Feb 1st 2016 ( b/c I doing... Going to look at a time 60/year plus a percentage of the receipt to the rules... With post-tax dollars for the original medical expense of 3000 backdoor mad fientist hsa ’ s are basically to. Detailed explanation. ) away an extra $ 1000 and also withdrawal 500! To offset the losses out for the first $ 1,000 in cash and above that can t! People ( us citizens as well for CA also wonder what the rules are wrong then contact your insurance. Uses has structured their program so that ’ s why some companies don ’ t paid fully.

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