Author Topic: How do I open an HSA Account (Already have an HSA Policy)  (Read 1361 times)

OneCoolCat

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How do I open an HSA Account (Already have an HSA Policy)
« on: October 08, 2015, 09:17:30 PM »
I have an HSA insurance policy through my job but I dont know how to actually put the 3.5k into the HSA.  Do I do it through my job or can I do it through Vanguard or something? 

Also, I had a pretty big surgery this year that used the entire deductible (may have been fortunate I had just got an HSA policy).  I already paid the deductible with after tax dollars.  Can I now put the cash in an HSA account and retain my receipts for my surgery so I can take out the 3k completely tax free in the future or is timing an issue here?  Thanks in advance.


MDM

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Re: How do I open an HSA Account (Already have an HSA Policy)
« Reply #1 on: October 08, 2015, 09:28:15 PM »
I have an HSA insurance policy through my job but I dont know how to actually put the 3.5k into the HSA.  Do I do it through my job or can I do it through Vanguard or something?
See http://forum.mrmoneymustache.com/taxes/good-hsa-providers/ for some options. 

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Also, I had a pretty big surgery this year that used the entire deductible (may have been fortunate I had just got an HSA policy).  I already paid the deductible with after tax dollars.  Can I now put the cash in an HSA account and retain my receipts for my surgery so I can take out the 3k completely tax free in the future or is timing an issue here?  Thanks in advance.
Note the acronym distinction: the insurance policy is an HDHP (High Deductible Health Plan) while the Health Savings Account (HSA) is the account you establish at a provider (e.g., one in the link above).

That's important because an HSA is a good deal but it's not retroactive.  From http://www.irs.gov/publications/p969/ar02.html#en_US_2014_publink1000204081 (emphasis added):
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You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish the HSA.
Any costs incurred before you establish (don't need to fund it, but do need to open the account) the HSA cannot be paid by HSA withdrawals.

AlwaysLearningToSave

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Re: How do I open an HSA Account (Already have an HSA Policy)
« Reply #2 on: October 09, 2015, 05:32:05 AM »
Do I do it through my job ... ?

Any HSA contributions made by your employer or as a payroll deduction are not subject to payroll tax, whereas contributions you make by means other than payroll deduction are subject to payroll tax.  Thus, there is a significant benefit to using the employer-sponsored HSA if one is available. But you need to consider all costs and investment options of the various HSA providers and make the best choice.

Thegoblinchief

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Re: How do I open an HSA Account (Already have an HSA Policy)
« Reply #3 on: October 09, 2015, 06:40:43 AM »
Definitely do it through your job. Avoiding the 7.65% of FICA is such a huge boon.

In fact, many of us argue that the HSA should be maxed each year and then put off-limits to compound as an element of your "old people money" because after 65 you can withdraw for any expense.

Save your medical receipts after establishing it if you need to make withdrawals earlier than that but otherwise an HSA is like a Roth on steroids.

http://www.madfientist.com/ultimate-retirement-account/
http://www.madfientist.com/hsa/