Best way in my opinion to use a HSA. Is to invest the money let it grow . So when you get older you don’t have to pull from retirement accounts to pay for medical bills. Great video
One of my favorite features of the HSA is that it becomes basically a traditional IRA that never has RMDs when you turn 65. It still remains a HSA you can pay for qualified medical expenses from but you can also withdraw money from it for anything else when you turn 65. The only difference being you never pay taxes on the qualified medical expenses but you do pay taxes on the other withdrawals like you would if you were taking money out of a traditional IRA.
Thanks for the info! Been with a real job for about 3 years and was confused about my HSA (as you mentioned) and I let it sit there. Will get to investing :)
I remember when HSA were first offered, I worked in HR benefits, and I was like this seems like crap. Now I am like this is Awesome!!! We both have one with our employer and finally I had enough in mine for investing and it's been great!
So does HSA can just stay as part of your account set-up even after you transition into a more traditional insurance plan? If so wouldn't it make sense to get one for at least one year (if you were on the fence) so that you would always have the account there? You wouldn't be able to contribute anymore I guess, but you'd still be able to invest the existing amount, right?
Your HSA will still exist if you switch from a HDHP to a PPO. Your account will be with a bank or a financial company like Fidelity, depending on who your employer is working with for employee benefits. It makes sense to go with a HDHP if your expected total healthcare expenses are lower with a HDHP than a PPO in the coming year. This is usually the case if you don't have any major medical things planned for the next year (such as births or surgeries) and if you don't have a lot of expensive ongoing treatments or drug prescriptions. The investments in the HSA can continue to grow tax-free indefinitely, kind of like an IRA or 401k you aren't contributing to.
Quick question! If I have to pay for a medical treatment, do you think it’s better to use the money in my HSA account (as I’m supposed to) or to pay with my regular credit card and let the money in the HSA account grow? Thanks!"
You can pay with your credit card and later reimburse yourself from your HSA. You can reimburse yourself at any time after paying. This could be one day later or decades later. Just remember to keep the receipts on file indefinitely.
Best way in my opinion to use a HSA. Is to invest the money let it grow . So when you get older you don’t have to pull from retirement accounts to pay for medical bills. Great video
I have my HSA with Fidelity
One of my favorite features of the HSA is that it becomes basically a traditional IRA that never has RMDs when you turn 65. It still remains a HSA you can pay for qualified medical expenses from but you can also withdraw money from it for anything else when you turn 65. The only difference being you never pay taxes on the qualified medical expenses but you do pay taxes on the other withdrawals like you would if you were taking money out of a traditional IRA.
Thanks for the info! Been with a real job for about 3 years and was confused about my HSA (as you mentioned) and I let it sit there. Will get to investing :)
Speed. As always I appreciate you time and videos. I’d love to have an HSA but my employer doesn’t offer it.
I remember when HSA were first offered, I worked in HR benefits, and I was like this seems like crap. Now I am like this is Awesome!!! We both have one with our employer and finally I had enough in mine for investing and it's been great!
So does HSA can just stay as part of your account set-up even after you transition into a more traditional insurance plan? If so wouldn't it make sense to get one for at least one year (if you were on the fence) so that you would always have the account there? You wouldn't be able to contribute anymore I guess, but you'd still be able to invest the existing amount, right?
Right, but most people aren’t planning to “transition” to a traditional plan. They’re keeping it and maxing out year after year
Your HSA will still exist if you switch from a HDHP to a PPO. Your account will be with a bank or a financial company like Fidelity, depending on who your employer is working with for employee benefits. It makes sense to go with a HDHP if your expected total healthcare expenses are lower with a HDHP than a PPO in the coming year. This is usually the case if you don't have any major medical things planned for the next year (such as births or surgeries) and if you don't have a lot of expensive ongoing treatments or drug prescriptions. The investments in the HSA can continue to grow tax-free indefinitely, kind of like an IRA or 401k you aren't contributing to.
Quick question! If I have to pay for a medical treatment, do you think it’s better to use the money in my HSA account (as I’m supposed to) or to pay with my regular credit card and let the money in the HSA account grow? Thanks!"
Totally depends on your plans and goals. People do it both ways!
You can pay with your credit card and later reimburse yourself from your HSA. You can reimburse yourself at any time after paying. This could be one day later or decades later. Just remember to keep the receipts on file indefinitely.
SPEED