The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: BusinessMajor on February 19, 2014, 01:46:21 PM
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Background: Mid 20's with no kids/wife yet, but they're in the 5 year picture. I'm a healthy individual but also fairly active so I'm always watching out for broken bones. Other than that, the only major expense that I can predict is child birth.
My Plan for HSA is:
- Contribute individual max to HSA before marriage
- Get married, switch to family HDHP with HSA
- Switch to low deductible plan
- Make the babies
- Pay for all out of pocket birth costs with saved HSA money
- Or save receipts and invest HSA as super IRA
Would the HSA funds contributed as an individual be eligible for those expenses? Are there other issues with those plans?
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All the money that is in an HSA would be eligible for future medical expenses.
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We max our HSA every year. We figure that by the time we are old, we will get sick. So it becomes a gamble on whether you think healthcare in the US will continue the way it is going (individuals shouldering more and more of the cost burden) or reverse course and get costs under control. I am voting for #1. So we figure we might as well put as much as we can in the HSA now, and use it when we are old. I believe that once you are a certain age you can also use it for any retirement expenses, not just medical.
That said, so far we have used the whole HSA fund. With an HSA and 2 kids + 2 adults we had 6K in OOP medical costs last year. We are dealing with some genetic issues that we didn't know about and couldn't predict at age 25 ;) Your health at 25 isn't a great predictor of your health in 5, 10, 20 years even if you take out lifestyle-affected illnesses. It sucks but at least we could pay it pre-tax.
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Good plan.
http://www.madfientist.com/ultimate-retirement-account/ (http://www.madfientist.com/ultimate-retirement-account/)