Posted on 08/02/2018 10:16:47 AM PDT by Red Badger
Is this a company sponsored or private HSA?.....................
got it thx
Those were the rules when I had to decide. A lot of people ended up scheduling medical operations they didn't really need rather than lose the money. Lasik surgery was a big winner.
These days, though, the numbers are a lot rougher, especially if you have dependents. If you're trying to get by on a low-premium Bronze plan and your coverage doesn't start until you're ten grand in the hole, then you'd better have ten grand stashed somewhere. I was reasonably frugal during my thirties but I don't recall having a lot of ten thousand dollarses lying around. How a family of four managed independent health care under 0bamacare I really can't imagine. And the IRS was waiting for them if they didn't.
You may be confusing Healthcare Savings Accounts with Healthcare Spending Accounts. The later is for use only on medical expenses in a given year, and if you don't use it then you lose it. Healthcare Savings Accounts balances can be carried over from year to year and you never lose them.
Exactly, plus if you start out young you need only contribute very small amounts and sit back and enjoy the miracle of compounding.
It's a loophole in a way. You fund it with tax deferred money, like a 401K (lowering your tax bill). Then you can either use the money for health care expenses OR invest it in options provided by the plan, again like a 401K. But unlike a 401K, if you ever use the money in the account for health expenses you don't pay tax on it. You do if you take it out for a vacation or something. But not for heathcare. I figure when I'm retired I'll need to spend money on healthcare so I'm funding my HSA now and investing the balance in some basic broad market stock and bond funds. When I'm retired, that's going to be where I pay my doctors from. And I have never paid and will never pay any tax on it if that's what I do.
There’s no carryover penalty on an HSA.
They’ve changed the rules since then—I ended up in the same place, but was able to get out. I spent every penny on “medical supplies,” and upgraded my first aid kits to full-scale medical kits for prepping. It’s worked out well, but it’s not necessary today.
This change looks really good to me since I’m looking at changing jobs and the new “benefits” has a high deductible. I’d like to build up a reserve, and/or have the deductions tax free...
Well, I suppose it’s really moot to me. I’ve been a contractor (in IT) for many years now and have had no health insurance since the day Obamacare went official in 1/1/2014. The one time since then we thought we were going to have a significant medical expense, prayer, followed by a miraculous healing ended it. :)
The trick is to use it with a high deductible health insurance plan (my company offers one with a $2500 deductible each year then 100% for everything over) pair that with an HSA to handle the deductible costs but I rarely go over half my annual contribution so I’ve built up enough to cover the deductible now for several years.
If I ever change jobs then I’ll still have that nest egg I can use for health care or out towards retirement.
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What happens to ‘retirement savings’ when all of the governments of this world have been crushed?
That is exactly what is going to happen immediately after the day of Trumpets in 2024.
Unfortunately, us Medicare recipients can no longer use HSAs.
I did not know that.
Should sue over Equal Protection Under the Laws.................
We won’t be needing them then...................
Thanks - bttt
“Unfortunately, us Medicare recipients can no longer use HSAs.”
You can draw down the accumulated funds in an existing HSA but you can’t contribute more money to it.
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