Author Topic: HSA-Medical  (Read 893 times)

ForeverLearning

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HSA-Medical
« on: September 30, 2017, 03:27:14 PM »
Open Enrollment is about to start & Iím trying to read as much as I can on HSA since we have never used it in the past.

Is there a reason why a person would NOT use it? It just sounds too good to be true & I just want to make sure we are not missing something.

Thank you!

MDM

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Re: HSA-Medical
« Reply #1 on: September 30, 2017, 05:06:35 PM »
Open Enrollment is about to start & Iím trying to read as much as I can on HSA since we have never used it in the past.

Is there a reason why a person would NOT use it? It just sounds too good to be true & I just want to make sure we are not missing something.

Thank you!
It depends on the relative costs and benefits between the HDHP and your best non-HDHP option, which in turn depend on your pre-insurance medical costs for the year.

Pizzabrewer

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Re: HSA-Medical
« Reply #2 on: September 30, 2017, 06:26:11 PM »
Be careful if you're funding a new HSA for 2017. If you fully fund it ($3400) you need to make sure you remain eligible (i.e. Stay on an eligible HDHP) for the following 12months. Otherwise you may be subject to extra tax and penalties.

ejacobson

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Re: HSA-Medical
« Reply #3 on: September 30, 2017, 07:09:11 PM »
HSA is usually a no-brainer. Your federal, and possibly state and SSA taxes are not levied on what you put into the SSA. It also grows tax free if you invest it. You can even withdraw for non-medical needs with a relatively minor penalty. Your bigger issue is the high deductible plan that you typically have to choose and whether those premiums and benefits are reasonable. If your deductible is higher than you can afford or if substantial health expenses are likely in the coming year, that should give you pause.

Anniemaygo

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Re: HSA-Medical
« Reply #4 on: September 30, 2017, 07:33:53 PM »
Most companies offer the high deductible plan and a PPO or HMO. 

Evaluate the total yearly costs of both plans.  When I calculated my savings on the paycheck deductions and tax savings on the HSA with the hd plan, the yearly savings would almost cover the whole deductible. 

I actually have my kids covered on my plan (in addition to their dads plan) because it is an overall savings with the additional money my employer contributes to the HSA for a family plan and the tax savings of the HSA.  I max it out every year and let the money grow.