Author Topic: Q: using HSA benefits years later  (Read 1211 times)

nereo

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Q: using HSA benefits years later
« on: August 31, 2018, 03:35:27 PM »
Just wanted to double-check something...

New job offers an HSA, and we've been piling money into it to the max to take advantage of the pre-tax/tax-free withdraws.

Now with shifting jobs we might have a new, non-HSA plan next year after we've put ~$13,000 into our HSA account.

I wanted to double-check the following assumption:  I can use that money years from now for medical expenses accrued even when I was no longer under an HSA plan. In other words, I can use funds I am saving NOW in my HSA to pay the deductible in the future when I am under a 'normal' employer non-HSA healthcare plan.

ncornilsen

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Re: Q: using HSA benefits years later
« Reply #1 on: August 31, 2018, 03:46:28 PM »
Yep... you can use the HSA funds for qualufied expenses even if you no longer have an HSA plan.

nereo

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Re: Q: using HSA benefits years later
« Reply #2 on: August 31, 2018, 03:58:10 PM »
Perfect.

The HSA seems almost too good to be true for those on the path to early FI-hood.  I keep having to verify that its all above board.  Pre-payroll tax, tax free growth, no tax on disbursal, make withdraws years (even decades later) for a qualified expense...

I'm understanding why Mad Fientist labeled it the "ultimate retirement account"

patchyfacialhair

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Re: Q: using HSA benefits years later
« Reply #3 on: August 31, 2018, 04:06:26 PM »
Perfect.

The HSA seems almost too good to be true for those on the path to early FI-hood.  I keep having to verify that its all above board.  Pre-payroll tax, tax free growth, no tax on disbursal, make withdraws years (even decades later) for a qualified expense...

I'm understanding why Mad Fientist labeled it the "ultimate retirement account"

Yep. It's why I max mine out every year, even though I'm not comfortable maxing out my 401k quite yet (getting there!).

Dave1442397

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Re: Q: using HSA benefits years later
« Reply #4 on: September 01, 2018, 01:13:00 PM »
This is my second year with an HSA, and last year I didn't really know much about how it worked, so I only put $1200 in it. This year, I maxed it out, although I'm using it to claim last year's $5k+ in dental bills. Next year, it'll all go to Vanguard.

Paul der Krake

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Re: Q: using HSA benefits years later
« Reply #5 on: September 01, 2018, 01:20:42 PM »
Yup, HSAs are the tits. They are so good I stay on mine despite having the option to have a fully paid, low-deductible, 0 premium plan through my wife's work. The immediate tax break and future flexibility is worth that much to me.

Kwill

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Re: Q: using HSA benefits years later
« Reply #6 on: September 01, 2018, 01:29:06 PM »
One thing to check would be whether you will be charged a monthly fee for the HSA after leaving the employer. That could eat up some of the HSA, especially if the fees go up over time. See what your options might be for transferring the money if they start charging high maintenance fees.

Sibley

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Re: Q: using HSA benefits years later
« Reply #7 on: September 03, 2018, 06:35:12 PM »
This is my second year with an HSA, and last year I didn't really know much about how it worked, so I only put $1200 in it. This year, I maxed it out, although I'm using it to claim last year's $5k+ in dental bills. Next year, it'll all go to Vanguard.

You may not be able to do use HSA money to pay bills from BEFORE the HSA was open. I'm a little fuzzy on your timeline, just double check you're good.

nereo

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Re: Q: using HSA benefits years later
« Reply #8 on: September 03, 2018, 07:49:35 PM »
As i understand it, you cannot use HSA to reimburse expenses before your opened the account.  Ive got an infant though - so no way iím Not going to wrack up several grand in medical expenses over the next decade...