EXPENSIVE HSA Mistakes To Avoid - Health Savings Account Warnings
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- เผยแพร่เมื่อ 7 พ.ย. 2022
- **Lively has started charging $24 or forces you to hold a minimum of $3,000 in their HSA. Due to this change, I do NOT recommend them any longer. Please do not use this company. A Fidelity HSA is currently free at this time**
In this video, we'll go through some of the biggest HSA mistakes people make. A Health Savings Account is a great way to pay for medical expenses as well as invest for your future, but there are quite a few fine details you're going to need to be aware of to avoid any potential problems.
Here is the original HSA video you should watch before or after this one: • The Real TRUTH About A...
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Here are some of the topics we'll cover in this video:
- Importance of tracking receipts for your HSA and how to do it: To be able to cash in on any health savings account money in the future you're going to need to keep track of your medical receipts. This is especially important for the people who are investing their HSA money since they're not going to be withdrawing money until many years into the future.
- Withdraw expiration date: There is no time limit for when you can cash in a receipt. There is no expiration date. If you invest the money today and plan on withdrawing in 30 years then there will be no issue.
- Medical expense withdrawal rule for a health savings account: You can only withdraw money from your health savings account starting when you first enroll in a high deductible health plan.
- Will you use all of your HSA money on medical expenses?: We can't see into the future, but in this part of the video, we'll go through a report from Fidelity laying out how much they expect people to pay for medical in retirement.
- Much more including topics around health savings account studies, HSA stats by age group, and much more
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Disclaimer: This video is for entertainment purposes only. Everyone's situation is different so do your own research before making any decisions with your money. If you need help then contact a Certified Financial Fiduciary before trying anything that is mentioned in this video. I prefer a Fiduciary financial advisor that charges an hourly fee as opposed to an ongoing fee based on a % of your portfolio. Always remember that incentives determine the type of advice they give you so one that charges an hourly fee is less likely to be problematic.
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I work at a hospital and have decent health insurance for free, and the high deductible plan with an HSA wound cost me roughly $70/month. Not sure how I can justify switching health plans for an HSA
Don't forget after age 65 that part B Medicare plans are qualified for HSA expenses. Most people currently pay $170 per month X 2 for a couple for Part B. That is about $4,000 per year so I don't believe many folks will have problems finding qualified HSA expenses. My wife and I are both over age 55 so our annual HSA contribution for 2023 is $9,300 which lowers our adjusted gross income to help with Roth IRA conversions and ACA subsidy income limits.
This is friggin great; thanks for your time and insights
I'm 24 and I have a balance of $6300 in my HSA which is invested ! Im currently down about $400 in my investment so hopefully it will go up as the market corrects itself to put me further ahead!!! I legit left my mom's medical insurance so i can start building this account because i learned to true power of this account at an early age ! People need to know about this !
I wish I'm as smart as you at 24. 😀
👍🏻
@@pqtaxmom Definitely true. I switched careers around 29 so I started with a lot people around 24, when talking about HSA as another retirement option they laughed and said they weren't going to bother with that because they wanted the money now. Young people with a decent paying job should 100% take advantage of their position to save as much as possible.
Awesome. Keep spreading the news
Sure wish this was available to me sooner.
This information is gold. I've been putting off creating an HSA tracker for a few months now... this video is the perfect motivation to get it done. Thank you!
Love it. I know it may look like it's a time-consuming process (from my example in the video), but it only takes 5-10 minutes to do from start to finish once you get the hang of it. The key is trying to track it as quickly as possible once you pay for the bill so you don't get lazy and accidentally forget. It also helps get you motivated to track when you know you'll lose out on money if you don't track everything 😂
Jarrad, Thank you! Until this moment I didn't realize I could move the $$ around in the HSA and invest . DUH !!!! Sometimes , it's the obvious things that we miss isn't it??? Anyway, just came from my HSA home page , which I'm sorry to say I'd never visited until now and have moved 2/3rd of the money into some Vanguard accounts . We'll see what happens!!
Jarrad fantastic information! Over 55 maxing out my HSA every year. And Investing ALL of it into a very low cost S & P 500 index fund. Won't even think of touching it until after 65. I know you were time limited on amount of info you could give. At 13:44 there's a extra 1K you can put in once you're 55+. That's $ 5,150 for 2024. Just subscribed to your channel. Keep up the great job.
Thank you so much for going over how to track the HSA for withdraws in the future. I saw this months ago and now getting around to improving my tracking with some of the suggestions you have. The only thing that I think could be improved is using some sort of visual separator in the PDF name of the expense as the cost runs into the date and is a bit difficult to read at a glance. A simple - in between the cost and date should make it easier to skim
Great videos - thank you. For the graph that shows the 65+ group withdrawing less on average is probably because Medicare is such a good insurance. I know someone who is on medicare in his 70s and he just had a cancer removal surgery at Standford and it was 100% covered.
I’ve been in love with the HSA since it’s inception but this is only the second job that has offered it. Three years & been maxing it out every year and will continue to. Trying to find out info about the investing side through my account with HSA Bank but no luck so far. Maybe I’ll just have to call them. Great video.
Thanks! Hopefully they give you a way to invest some of the money 👍🏻
These videos have been sooooo helpful! Recently signed up for a high deductible plan with an HSA. Was skeptical at first bc of the idea of higher expenses. But your video explained the basics so well and how to ensure your preparing yourself for those potential higher expenses by having the deductible amount remain the HSA.
Glad it was helpful! Thank you for the feedback!
I knew this way from you and it has worked well for me for a year
Happy to hear it's been working out and thank you for checking out the original video. I had to put out an updated video to help reach a new audience...which is seems to be doing 👍🏻
I’m new to HSA and Thanks for clarifying the expiration date. I did not know that lol. I thought I’d have 60-90 days to get reimbursed.
Happy to clear that up for ya 😃
13:50 I agree, the dropoff for the 65 or older is curious. I would speculate that the 11.13% withdrawals dropoff is
1) related to the annual contribution down 8.91% to $2,545 from $2,794.That might be primarily driven by a switch to medicare. but also, medicare might result in less out-of-pocket expenses compared to the high-deductible HSA plan
2) people forgetting about their HSA savings / not knowing about eligible expenses like assisted living
3) death of spouses when one spouse was using HSA for both spouses expenses would reduce the annual withdraw
I'm so glad I did the right choice in getting this. I'm 24 and I did so much research and most mentioned if you are healthy and don't need much medical care this is great to have and can even help with other expenses when you retired. This is my first time obtaining health insurance and was so nervous about what to choose 😅
Nice! Keep me updated on how it's going. I'd love to hear your thoughts (good or bad) after a year. Just try to make sure you're doing the things in your power to stay healthy and reduce overall medical costs.
Update a year later?
Thank you for another informative piece. I've been watching a lot of people and they smoke and or drink are overweight with a poor diet. I've been counting calories losing weight almost 70 lbs in 7 months I stopped drinking don't smoke exercise. I'm feeling great still eating the salads beans fish nuts oatmeal and such. I sleep better I have more energy I'm more upbeat. We have only one body might as well maximize it! Thank you again go team Molly 😆 man that 42 minute ad was killer 😂
Love this comment. Happy to hear you're doing all of the right things. Living a healthy lifestyle has such an enormous impact on current/future medical expenses. Glad to hear you're doing well. Thanks for sharing your thoughts
@@JarradMorrow I'm hoping it will reduce the medical expenses in the future. Its nice to know I'm working towards the right track
Glad I came across this because I do have an HSA but did not know I can invest it and so will now look into doing that. My account is with Fidelity as is my 401K. So should not be a problem. I guess I'll also now will increase my contributions.
Thanks for your videos. They have been very helpful as I decide if I want to take advantage of the HSA high decuctible plans my company currently offers for 2023. With the HSA my company offers the option to also sign up for a Limited Purpose FSA. I have a regular FSA with my current plan so I understand in general how FSAs work. I am trying to understand the pros and cons of using the Limited Purpose FSA with an HSA and would appreciate any feedback you may have. Thanks.
One of the best videos I have seen on this topic! Tell me, is there any reason to save the physical copies of receipts?
No reason to keep a physical copy as long as you saved a digital copy somewhere else. Got to cover your ass in the off chance the IRS audits you.
Lack of tracking was my biggest blunder. Just started to improve my process yesterday.
What’s crazy is I have no idea what I’m doing and I really wish public school taught me how investing work and insurance. I’m definitely a deer in the headlights on this stuff and it’s giving me crippling anxiety.
Great video
Thanks!
My employer offers an HSA that is a use it or lose it option and doesn't carry over. I'm assuming there is other types of HSA's. Great video and like the info too BTW. Thanks!!
That is a FSA not an HSA
Those HSA stats are crazy. Shows you how ignorant most people are of the financial world. Very few people even have HSAs and most with one either don't max it out or don't invest any of the funds at all because they don't realize it's an extra step in the process.
You hit the nail right on the head. There isn’t anyone out there in the professional world teaching these things to employees. Kind of messed up they have to happen to stumble onto a random video on TH-cam to get informed
Hello, thank you for this valuable information! I do have a question: could these savings be used to pay off medical bills in the event the account owner dies? For instance, when my Mom passed away, we received medical bills from the hospital and doctors while she was under their care in her last days.
Hi Jarrad, I'm glad to see you putting out more content about this. I've been using your method of tracking HSA expenses from a previous video, but some of my receipts don't show how it was paid. For example, a hospital bill marked as paid in full but doesn't list the payment method. For all the IRS would know, it could have been my grandmother's cash, or a friend's credit card. In a situation like this, I have been also uploading my credit card statement pdf showing the corresponding charge amount. Do you have any suggestions for a better way to do this other than keep the receipt and save my credit card statement for each transaction?
That's a very good question. To be honest I haven't even thought about it so thanks for bringing it up. I can't think of a better way to keep track of that other than credit card/debit card statements. I'm going to have to call a couple of HSA providers to get their thoughts on this scenario because I think it's a valid point.
@@JarradMorrow I'd be very interested to hear about what you find out! I also have thought about calling the IRS to ask about what kind of proof is needed to staisfy the record keeping bulletpoint on the IRS website where it states "The qualified medical expenses hadn’t been previously paid or reimbursed from another source". If you makes some calls, you should ask them that as well! I haven't been able to get a hold of a live person at the IRS about it 😅 I bet the HSA providers may have some answers!
I’m also interested to hear what you find. I’ve been following your tracking method as well. But until now have been keeping provider invoices and credit card receipts as backup. Hadn’t considered also keeping a copy of the credit card statement.
If it’s not paid by HSA funds, I wouldn’t think it matters how it was paid.
@@theclown888 I am referring to when medical expenses are paid out of pocket and planning on reimbursing myself with the HSA funds 10+ years in the future. Per the IRS guidelines, certain documentation needs to be kept and what info needs to be on the documentation.
Hey Jarrad, Are the investment opportunities through Lively cheap enough to offset the small Health Equity fee on the Vanguard funds?
Good video 🎉
Thanks 😁
Hi, thanks for the great video and series of videos on this under-covered topic. One question I have is at the 3:30 mark on the video you mention not relying on the HSA provider to keep your medical receipts. I wouldn't think the HSA would have those records anyway since they were paid out of pocket instead of using the HSA?
I know that sometimes HSA providers use this as a benefit to market their services. Wanted to point this sort of thing out to clear up confusion so viewers don't automatically think the HSA provider is keeping track of everything for you
@@JarradMorrow ok thanks, I haven't seen that at my employer's plan. They must be getting that information directly from the insurer I suppose.
Wanted to call out that the yearly IRS limit includes both the employee AND employer contributions. It makes sense that if there’s a employer contribution, the employee would put in less vs. those without a employer match.
Good callout. This is something I mentioned in my other HSA video that I referenced at the beginning of this one 👍🏻
How is the contribution made? Bi weekly pre tax deductions? Or lump sum?? I’m really not clear on this detail.
Would the annual recap you can print from your health insurance website qualify as your medical receipts? Like BCBS has a report which shows date of service, allowable charges, what was paid by the deductible, what was paid by insurance, what you owe and then the provider name. Is that enough or would we want to keep each actual individual bill?
great stuff
Thanks!
Is there Is there not a way to keep up with the outflows of your Is and the possible future reimbursements Is there not an app
Protip: Don't use the debit card they send you. Use a rewards credit card instead, then pay it off at the end of the month.
This. Sort of. If you use the debit card they send you, then you won’t be getting reimbursed for anything, but you’re also not taking the tax hit paying out of pocket. Rewards credit card vs cash? - rewards card for sure. Rewards card all the things. (And yes, pay it off each month)
@@okiedoke5499what?
Looking for confirmation on my understanding of this - so if I have a medical bill today for $500 and pay out of pocket. I can save that receipt, use it in say 10 years to withdraw that $500 tax free to "reimburse" myself?
Yes
i wonder if a nursing home or assisted living or home health aide services would be considered "medical" expenses. I get that $$ could be pulled out for these expenses after age 65 but I'm thinking about the tax issue.
Hi Jarrad - I've been watching your videos all week. It's open enrollment time and I just switched over to a high-deductible plan and set up my HSA to be maxed out. I plan on paying for my medical expenses out of pocket and saving/investing my HSA funds. Now, are those medical bills that I pay after-tax money on able to be itemized on my taxes because I'm not using my HSA funds?
Yes, I want to know the answer to that. Can you deduct your expenses that you pay as a medical deduction (if you have enough). Eventually you will be reimbursed.
My document naming convention is “Year-Month-Day_Business Name_Service or Item Purchased_Amount Paid”
Sounds good to me!
This is great stuff. Will a copy of the EOB satisfy an audit for a "receipt"? I know this won't work for OTC or other qualified purchases.
Eh, I wouldn’t feel comfortable using that to prove what I spent
Thank you so much for your amazing videos. I have learned so much! Quick question on the HSA, if my spouse has an HSA, but I am not on her healthcare plan, Can we include my medical receipts if I have no health insurance and can we contribute up to the family yearly amount even if I’m not on her HDHP plan?
I don’t think so but let’s see what he says.
What if you have two HSA accounts - one from a prior employer and one from a current employer? If you move the balance from the older account to the newer account and close the older HSA account, would you only be able to cash in medical receipts from when the CURRENT HSA account was opened, or can you still cash in older receipts for medical expenses that occurred while you had only the older HSA account?
New to your channel. Nice content. Can you do what you currently invested in HSA? I started investing from this year and need your insights
Here's a video where I break down everything I do with my money and why: th-cam.com/video/q2tIcMDXYlc/w-d-xo.html
I keep enough in my HSA to cover my deductible for 2 years. I do my actual investing in a stock account and in my 401k. Not interested in being penalized if I need the money in an emergency, and I’d have to pay taxes on it either way.
Can I get a copy of your google spreadsheet for keeping track of my HSA medical expenses?
Question for that example when you want to withdraw your money in 25 years. Are you saying that you can withdraw money from HSA when you want (let's say in 5 years), because you have reciepts that you spent that amount out of pocket? In this case, when will your reciepts be checked and and how? Only by auditing you?
Ok so here's the predicament I'm in... I signed up for Lively recently just to find out about the new charges so now I'm looking at moving over to Fidelity like you recommended. You mentioned that I can be reimbursed on "transactions made after your FIRST account has been opened" so....
1. How do I handle this by moving accounts? Just keep my Lively open forever with the $100 I have in it? I already have a $500 expense that I don't want to lose since Ive opened Lively.
2. If by "FIRST" HSA account I have several large medical expenses that add up to around $6k but they were before I opened my personal Lively account, but I did have a HSA account with a previous employer years ago that I no longer have access too. Is there any way to manipulate that?
Can you open a HSA if you don't have a HDHP because right now I have a PPO but will eventually get a HDHP in the future so if I do open one I just won't be able to spend anything out of it until I change plans right also would this affect my insurance in any way
Just in time for open enrollment
Timing is everything 😃
If I don’t use any of the money on my HSA account do I still need to pay taxes at the end of the year for that unused money?
I decrease my HSA contributions when my employer contributes to my HSA because I cannot contribute over the max. But I put that money toward other investments. I am guessing that the research accounted for such behavior?
Can I claim my monthly payments for braces on my HSA? I’ve been paying it through my debit.
One thing to note is that if you're not maxing out your HSA contribution do not do the method of paying out of pocket and then reimbursing from HSA. Just contribute the money you would have paid out of pocket directly to HSA and spend from there. This saves you social security and medicare taxes. Now if you've maxed out your HSA but not all sources that have a tax benefit, such as a 401k or a roth IRA, doing this method of reimbursing doesnt hurt you but doesn't help either. Since the money you're paying out of pocket could be going toward one of those sources. It just depends whether you want the money to go to 401k/ira or HSA. The true benefit comes only after you're maxing out everything. With the hassle of saving receipts and potentially losing them, it's probably not worth it until then.
Question: Are copies of credit card receipts enough, or does it need to be an itemized receipt? What should I ask my healthcare provider for when they just hand me the cc receipt?
You need itemized. When they hand you a receipt, ask for an itemized for HSA.
What about a CDHP with HSA? Which ones better HDHP?
How exactly do you “pay yourself back” or “cash out” your receipts? Do you just withdraw the money and if you ever get audited you have a track record of receipts?
Hi Jared, I just discovered your content and I appreciate the info!
I already have a good robust 401k which is traditional and Roth included. Our company a few years ago started HSA contribution I now have 13,000 in this account would you recommend me investing it all into your recommended FXAIX fund or just part off it. I’m 57 plan on working maybe 4 more years. Do not plan on withdrawing any money until it’s needed. Any recommendations would be helpful. Thanks and keep the content coming as I am introducing your videos to a lot of co workers young and old.
My guess for why people spent less after 65 than right before is because they were checking their health to see if there's anything major they need to look out for before quitting their job.
To the comment on people that lower their 401k when they contribute to HSA. I think this is fine as long as you are getting the 401k match. Because the HSA acts like a 401k for non medical expenses, for each dollar to invest, the priority should be 401k to the match, then max HSA, then max 401k.
I forgot about an HSA account that I opened in 2017, but due to a low balance or inactivity, it closed in 2023. The balance was so low I’m not concerned with getting the money. It’s that I just learned from these videos how I can reimburse myself for medical expenses in the future if I have an HSA!
I currently cannot open a new one (I don't have a HDHP) but if I do have the opportunity in the coming years, will I be able to reimburse myself for expenses from 2017-2023? All the information talks about not being able to reimburse oneself prior to opening an HSA, but nothing about when one is closed. When it closed did I loose the opportunity to get reimbursed from 2017-2023 (pending I open a new one)? Or does the rule restart when I get a new HSA? I cannot seem to find any information about this scenario.
Great video!! I know you said that if we decide to switch out of a HDHP after trying it out that we can still use the money in HSA for medical expenses , but can we still leave that money in investments to grow?
I am 24 and healthy but i do have a minor heart condition that does require check ups every few years so just trying to see if its worth it for me!
I already max out my Roth and contribute about 400 to my 401k per month( including employer contribution)
Thanks for always putting out great content (:
Yes you can leave the money invested to grow
@rvoit lmao nah, im very happy with my balance of savings for the future and money for enjoying life right now.
@rvoit why are u spending your time commenting this on a random TH-cam video lol isn’t there more conservative things you could do with your time?
Do you have a link to where I can buy that gray jacket you are wearing? ❤
No
If I start an HDHP December 1st can I max the contributions even though I'll have the plan just 1 month of the year? - Loving the videos - Thanks!
Unfortunately, it's proportional to the time you have the HDHP. So yes, you could max it out but you have a mid-year change months from now and you switch to a non HDHP plan, you will have to file a form stating "oops I over contributed" and even it back out to those months you had an HDHP. If you front-loaded and then invested the HSA money and you switched mid-year you would have to remove the "gains" as well. There is an excise tax for over contributions.
👍🏻
My company takes HSA contribution through bi weekly paycheck. There is no way to invest the lumpsum maximum amount. Can you explain how to “contribute” maximum? Those details are missing
Contributing now to HSA (family, will be $7750 total contributions in 2023). That's great that there is no time limit to claim expenses, so I will plan to save receipts and do that later in life. Question: Can I claim expenses for dependents later in life when they are no longer a dependent? Should I save all of those receipts/expenses separately and claim them at the point when dependents are about 25 years old? Thanks for any help!
Good question. Yes, as long as the medical expense was incurred while they were covered under your plan you can so save those receipts.
Hey there, i am self employed and holistic approach so i do not have medical insurance at all but i opened HSA, hoping i can write off some biological doctors that insurance never covers. Can i have HSA without insurance at all? I do not want to pay for HDHP if i will never use it. I would lose money paying premium jut to be able to benefit from HSA account.
Even though I have Healthcare through the VA, I still opted for a HDHP through my employer JUST to be able to take advantage and max my HSA every year. Invest your HSA people! 96% of HSA's aren't invested!
Hey Jarrad, great info, one question though - In the case where I open an HSA and am single, but say I get married in 6 months, what are the rules around contributing/converting an HSA to a family HSA, can I have my spouse contribute to the same account, or do I need to start a new one?
Great question. The IRS views HSAs as individually owned so there's no such thing as a "joint/family account". If you're the one who owns the account then the contributions will come directly from your paycheck. At that point you can decide how you both want to handle splitting up the cost (i.e. since all of those contributions come from your paycheck he/she pays you back or pays more for something else to split up the cost, or however you want to handle it)
The type of HDHP (family or individual) only determines the max amount you can contribute.
He/she can still spend money from the HSA like they own the account even though you technically do.
You should be able to just use the same HSA you already have as long as you're with the same employer with the same HDHP/HSA provider
Prices in the US are ridiculous $300K here may be doable for $50k or $25k somewhere else. Medical needs also snowball. Chemical medications lead to needing more medication and procedures. So many are addicted to medicating for every little thing.
Thanks for sharing your opinion 👍🏻
agree 100% 4:00
Can the younger spouse continue to contribute the maximum family deductible (8750 with the catch up) if the older spouse claims social security and is automatically signed up for Medicare A? Family HSA is in younger spouse’s name. Older spouse will still be covered on younger spouses insurance until he retires. Older spouse has reached full retirement age.
Could we please get a copy of the template you use for your spreadsheet HSA tracker?
I tried to share a link to my attempt to create the template but apparently links are not allowed in comments as it was deleted
Say if you pay of pocket initially for all your medical expenses and don't want spend your HSA money on them because you want to keep grow the HSA money in the account by investment.. but ten years later, after you've substantial amount in the HSA account, can you then start re-imbursing yourself all those medical expenses 10 years ago as long you keep those 10 years old receipts till current date?
Just opened up my hsa... what are some investments people tie together with their hsa money and because already having a roth ira would it make sense to mimic similar long term investments or diversify. For example, It wouldn't make sense to have both invested in the snp500 or would it?
I personally like to mimic holdings across all accounts if possible because it makes it easy to manage during the accumulation phase of investing and easy when it comes time to withdraw in retirement.
So for me I go with a 2 fund portfolio: th-cam.com/video/hlWuryxUupE/w-d-xo.html
Than plan to move towards something like a 3 fund portfolio: th-cam.com/video/X7hZQmSj8KI/w-d-xo.html
My deductible is 4k, my goal is 40k in my HSA so if i have a return of 10% in average my cost of insurance is 0 since the plan is not that expensive. 1/2 way my goal. Based on this data people are loosing a lot of money by not using an HSA
Do you have a personal health and fitness channel? I think that I need that too.
Negative. I've been into health and fitness for the last 15+ years though so I might know some good resources for you. If you can let me know the specific areas you need help with then I can point you in the right direction.
I was very close to putting together a free health/fitness resource guide for this video, but decided against it at the last minute since I didn't want to annoy people by nerding out too much. Maybe I should have just created it anyways 😂🤦🏻♂️
@@JarradMorrow: The trouble is that I do not even know what I need to know. Let me think on it! But, in the meantime, let me be a lone voice encouraging you to post such material (if you want to do so), and to never worry about being too nerdy.
What’s up Jarrad! Quick question! Could I use other peoples receipts for over the counter drugs if they paid in cash???
I suppose technically you could, but that's also what we call fraud as well. It's not something I condone since it's illegal and at the very least immoral
@@JarradMorrow That’s really good to actually! Thanks 😁
Can you pay Medicare premiums with HSA dollars?
Yes, you can if you turned 65 or older, OTHER THAN premiums for a Medicare supplemental policy, such as “Medigap” policy.
How do I reimburse myself after paying for a health related expense. I lost my HSA card and had to pay for contacts out of pocket.
You should be able to contact your HSA provider. No card needed
So you don’t need an actual physical receipt? A photo of it is sufficient for the IRS? 🤔
I called 3 different HSA providers and they confirmed this
My HSA has a $3.95 monthly fee but waived if my account balance is above $2000. On top of that, I can only invest funds after $2000, with a yearly contribution of $3850. I'm trying to maximize my paychecks since my tax reductions is high as a single person and figured, it's nice to have ready-to-withdraw money for exams, cleanings, prescriptions. After that $2000, the plan was to invest every single cent to REITs (for dividend tax advantage), international, and 500 etf stock. Is this worth it?
sounds like my old one, started with an "O" (not going to mention their name lol ), once I ended service with my old employer I transferred to fidelity
Yea investing within an HSA is great since you have triple tax advantage. My employer uses healthequity which has higher fees but I transfer out the maximum amount I can into fidelity which has no fees - I highly recommend this.
I'd say go to lively that's where I'm at no fees!
...deferred distribution to allow invested funds to continue growing🤯
Yep
Hi, I put every health purchase on the same credit card, nothing else on this card. Good idea?
I’m of the opinion that you should pay off all credit card balances by the end of every month
Not financial advice, I know, but do you think self-pay insurance should be covered correct? I have been unemployed after starting account and paid out of pocket to have an insurance coverage. Just trying to keep my receipts lol :)
I don't 100% know and would be afraid to give you a definitive answer because of that. You should be able to go a google search for HSA approved expenses to find a list
Generally, you can’t pay insurance premiums with HSA funds unless the premiums are for:
a. Long-term care insurance (subject to IRS mandated limits based on age and adjusted annually).
b. Healthcare continuation coverage, such as coverage under Consolidated Omnibus Budget Reconciliation Act (COBRA).
c. Healthcare coverage while receiving unemployment compensation under federal or state law.
d. Medicare and other healthcare coverage once you turned 65 or older (other than premiums for a Medicare supplemental policy, such as “Medigap” policy).
Do you fall within any of the categories above?
Can a HSA be used to pay yourself in the future for healthcare insurance payroll deductions ?
Not sure off the top of my head. Double check on the IRS website
Also how do we withdraw money? And when and how will I have to show proof?
You should be able to withdraw money through your HSA provider
Can you link a copy of your spreadsheet?
bit.ly/47K3T23
Can I get a copy of your spreadsheet in google sheets?
Does it have to come out of your paycheck or can you pay into the plan ( the maximum)at the first of the year so it can gain larger intrest for that year?
I think to get the tax benefits, it needs to come from your paycheck.
You can pay into your HSA any way you like. You can even fund the prior year up until tax day. BUT, you probably don’t want to do it that way consistently because you save the ~7.5% payroll tax by doing paycheck contributions.
So stupid question. I have an FSA that does not roll over. I thought you could only claim medical expenses/ purchases for the current year.
An FSA is completely different from an HSA. You’d be surprised how many people accidentally mix the two up so it’s not a stupid question
@@JarradMorrow it really is. I only started last year and can’t believe I’ve been missing out but I did get clarification at work and it has to be expenses for the current year.
My guess is that the 65+ crowd aren't paying for their children's medical expenses anymore but the previous two age groups may still have kids at home. If that's the case, it definitely highlights the increase in medical spending because the 65+ age group is still spending a ton even without kids in the picture.
What would you recommend for a 63 yr old starting an hsa for the first time? There are implications for taxing this later so I an concerned about putting the max in there?
It all depends on your current situation. Since you’re closer to retirement not all of this info will apply to someone like you
@@JarradMorrow I chose this and an HDHP to minimize expenses for medical, and since I can use them myself in retirement, maybe it makes sense to get the tax advantage, regardless of investment returns?
If I use the card ( hsa) to pay for a qualified expense. I can then later reimburse myself the amount to my checking( personal)?
As far as I know, when you use the HSA card it deducts the amount from your account balance so you cannot reimburse yourself again in the future.
@@JarradMorrow I did reimburse my self So what’s the recourse to fix that. Guess I just learnt something new
My husband just got hired for a company with a cdhp hsa plan. Is that as good as a hdhp? What’s the difference?
I've never heard of a CDHP so I'm not sure
If i pay for my parents medical bills and I claim them on my tax returns can I withdraw from my hsa based off of their medical bills?
As far as I know the IRS only allows you to use this money for people covered under your insurance.
@@JarradMorrow ok, that sucks. Thank you for the reply
I thought the annual max contribution included the employer contribution. Is that incorrect? In other words, I thought I had to contribute less due to my employer’s contribution.
It does. The yearly max for 2022 employee +employer is $3650 (single) $7300 (family).
@@danahays5884 gracias!
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I looked into a HSA and it needs a high deductible insurance which the deduct is 3500. My co pay for most things are 25 currently. If for whatever reason I have an emergency it’s not worth it for me. Although my insurance is 115 low deductible. High deductible is 60. Just not worth it.
It always depends on the person but the idea is, if an emergency happens, the deductible is likely going to be a drop in the bucket.
If it isn’t, how often are you going to have an emergency?
The money you can put into an HSA can cover that per year, and the amount you can save on taxes and investments can be significantly more over time.
But again, it’s always up to the person and their risk tolerance, as well as income, and health.
But the math works for you.
Thanks for sharing your thought process and thank you for checking out the video as well
@@JarradMorrow I appreciate you bringing this to light I didn’t know about this at all. It will help others for sure
@@SPVietBoy no meme I haven’t had a medical emergency, I am 28. But the risk vs reward isn’t there for me.
In some cases the co-pay plans have a higher out of pocket maximum (OOPM). So you may be paying $115 x12 = $1,380 (if that's your monthly cost) + the OOPM might be $7,000, so in that emergency year you would be responsible for $8,380 total. If you had the HDHP $60x12 = $72 + the OOPM might be $6,000, then your total is $6,072. If you started the HSA max contributions it would only take you 1 year of approx $300 a month to reach your deductible to be set aside, plus it would lower your taxable income by $3k. But it's about the risk tolerance...if you feel like you could be healthy for a year to boost it up you could go for it. :) But it does sting when you go to your PCP and they say $150 please...but I already have it saved, use a CC for reward points and know I can get my HSA dollars out if needed.
Please note that if you are maxing out your HSA, you HAVE to reduce your contribution if your employer contributes. Combined you cannot exceed the max contribution or you will be charged a penalty by the IRS on the amount over- contributed
How does the contribution work? Lump sum maximum or through bi weekly paycheck???
Here's another warning. If you live in California you should be aware of the following... As I understand it, while the income (dividends and capital gains distributions) that your HSA makes each year is tax free federally, it is not tax free for California state taxes. One day, when your HSA has grown substantially and is earning significant amounts of income annually, the CA FTB may come looking for you if you haven't been reporting that income. Your HSA company may not provide a convenient 1099-like statement to figure this out either (mine doesn't), you might have to glean the income amounts out of your statements at the end of the year. Note that this is by no means a reason not to use an HSA as an investment (though it may depend on your situation) but is another headache when it comes to managing an HSA. And may be another reason to make that move out of California you've been thinking about.
Don't forget that dental and vision claims, not only medical, can be claimed!
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I thought the advise was pay out of pocket. When do you claim???
When you claim is the question. Some claim after the bill is paid and some save them for retirement. The point was that you can claim not only medical expenses but also dental and vision. @@sarahchang6215
would an HSA cover medical expenses from services provided overseas?