HSA's

[Exflyboy]

Sorry if this has been posted elsewhere.

I have a high deductable, HSA compliant HC plan and want to take advantage of the MAGI reduction of a HSA contribution.

My HC provider is implying that I need to go to 'their" partner provider to get an HSA. I assume however that I can go to any provider of HSA plans.

Is this the case or does the HSA have to be tied to the HC plan somehow?

[Paul der Krake]

You can contribute to any provider who will have you. You won't get the payroll tax deduction, but that's a moot point for you. If you look at form 8889 and its instructions, the only thing that matters is that you make your contributions while you are eligible.

Example: my current HSA provider makes one-off contributions difficult, so earlier this year during tax season I topped up my 2016 contributions in my old provider.

[Exflyboy]

Great so I need to find an HSA provider that will allow me to make the full contribution for 2017.

I will get on it.. Thanks..:)

[Raenia]

I recently finished going through this process with HealthEquity, so if you have any questions feel free to ask or message me.  You may find this thread of interest as well: https://forum.mrmoneymustache.com/ask-a-mustachian/tell-me-about-your-hsa/msg1655299/#msg1655299

[seattlecyclone]

It's possible that if you go with the insurance company's preferred HSA there will be some data sharing between the two that will help you with recordkeeping with regard to which HSA withdrawals corresponded to which medical bills. It's definitely not required though, and I wouldn't personally value that service at more than a couple of basis points.

[Exflyboy]

You can contribute to any provider who will have you. You won't get the payroll tax deduction, but that's a moot point for you. If you look at form 8889 and its instructions, the only thing that matters is that you make your contributions while you are eligible.

Example: my current HSA provider makes one-off contributions difficult, so earlier this year during tax season I topped up my 2016 contributions in my old provider.

Just a clarification if I may..

I'm not sure what the payroll tax deduction means.. I am FIRED so of course I don't have a W2 job.. But I do have rental and after tax dividend income.

Does contributing to an HSA reduce my MAGI in my case?

[Paul der Krake]

Yes, contributing to your HSA is an above the line deduction. Payroll taxes don't even show up on your 1040, and that's an additional perk of contributing to your HSA if you are subject to payroll taxes. Unless you set up your rental business as a corporation with an actual payroll, it doesn't matter to you.

[Exflyboy]

Ahh right, thats what I thought you meant but easier to be clear..:)

Thanks a bunch!

[GetItRight]

Indeed you can use any bank you want for a HSA, but if your employer provides a match or deposit to an HSA you may be tied to whoever they use. Personally my employer deposits a fixed amount annually in an HSA, only into their bank of choice. A perk of that is no fees in that account. Their bank does not work with mint, so I have my own HSA with another bank. When my employer deposits money in my account with their bank I withdraw it immediately and then deposit in my own HSA of choice. My own contributions I just claim when I file taxes, those contributions are deductible from your overall government theft for the year.

[Exflyboy]

So I am signing up with Health equity who helped me with my remaining questions. I.e

My Wife has the HDHP in HER name (that covers me). It was easier this way because she got the COBRA notice when she FIRED etc.

I only want to open one HSA (I actually already have one but want a better deal so will transfer this account over to Health Equity). I am 55 and DW is 52.

I can open just a single HSA in my name and make the $6750 family contribution plus the $1000 55+ catch up contribution into this account.. Then take the $7750 MAGI deduction at tax time.

The HSA in my name can fund medical expenses for both mine and DW's HC needs.

OK.. Thats what I'll do.. Thanks for your inputs.

[Seradoc]

It may be worthwhile to shop around when it comes to investment oriented HSA providers.  They are generally rife with fees and overhead across the board, but there are a few where you can actually get decent return in good investments.

I was doing some reading on it today and was considering Lively HSA, which appears to have a flat cost of $30/year to invest your HSA in a TDAmeritrade account with no other fees.

[facepalm]

From February, but some good info. They do mention investment accounts with HSA Bank.

https://20somethingfinance.com/best-hsa-account/