Author Topic: Help with my HSA  (Read 2178 times)

rachellynn99

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Help with my HSA
« on: March 01, 2017, 01:47:52 PM »
I have a HDHP ( $2k deductible) and have an HSA. I have about $4k in my HSA . I haven't invested it, and when poking around today on my account figured out I could. A bit about me:
No current health needs or concerns, no plans for pregnancy , no reoccurring prescriptions.

My husband and kids are on his insurance and he has an FSA that we normally use to pay for the kids co pays and such.

My monthly fees for investing in this HSA is apparently $1.25/month.

Questions:
What happens if I move jobs? Does it come with me somehow? Do I have to cash it out?
What do you all recommend I do? How should I invest and how much?
Is this month good forever? Like in retirement? I'm fairly young so could work for potentially 30 more years. Would this money keep growing and then I could use it when I'm older?

Thanks for your help.

Mgmny

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Re: Help with my HSA
« Reply #1 on: March 01, 2017, 01:53:57 PM »
I have a HDHP ( $2k deductible) and have an HSA. I have about $4k in my HSA . I haven't invested it, and when poking around today on my account figured out I could. A bit about me:
No current health needs or concerns, no plans for pregnancy , no reoccurring prescriptions.

My husband and kids are on his insurance and he has an FSA that we normally use to pay for the kids co pays and such.

My monthly fees for investing in this HSA is apparently $1.25/month.

Questions:
What happens if I move jobs? Does it come with me somehow? Do I have to cash it out?
What do you all recommend I do? How should I invest and how much?
Is this month good forever? Like in retirement? I'm fairly young so could work for potentially 30 more years. Would this money keep growing and then I could use it when I'm older?

Thanks for your help.

What happens if I move jobs? Does it come with me somehow? Do I have to cash it out?
You can keep it or transfer it. It's up to you. Depending on the fees/options of your next job, it may make sense to keep or transfer it. Some employers charge fees to their plan participants if they are terminated to keep the HSA through them, so look for that. Also, once you switch jobs if you don't transfer the balance, you'll need to fill the HSA cash account before investing the rest, so moving it all together might make sense.

What do you all recommend I do? How should I invest and how much?
Invest everything you can above the cash minimum. Who is your account through?


Is this money good forever? Like in retirement? I'm fairly young so could work for potentially 30 more years. Would this money keep growing and then I could use it when I'm older?

Yes. HSAs are the greatest thing known to man in USA. The money is good for ever. It is pre-tax, grows tax free, and can be withdrawn tax free. If you can keep the HSA going for the next 30 years, then you will have a good amount of tax-free money available to you.

Whether or not an HSA will be available to you for the next 30 years is doubtful, but i'm keeping my fingers crossed. A lot of companies anticipated a democrat taking the whitehouse, and didn't really pursue HSA administration in the past year. Now that we have a GOP controlled legislature and executive branch, HSAs should be here for at least 4 more years if not forever!

rachellynn99

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Re: Help with my HSA
« Reply #2 on: March 01, 2017, 01:59:51 PM »
I log into myrsc.com and all my paperwork says HSA Today on it.
As far as the possibility of it going away, what would happen if it did? Could I cash it out? Just lose it? Transfer it to some other type of account?

Thanks for your help.

Mgmny

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Re: Help with my HSA
« Reply #3 on: March 02, 2017, 06:31:21 AM »
I log into myrsc.com and all my paperwork says HSA Today on it.
As far as the possibility of it going away, what would happen if it did? Could I cash it out? Just lose it? Transfer it to some other type of account?

Thanks for your help.

Well, if the laws change, no one can really predict what would happen, but I would say there is a negligible chance that your funds would disappear - it's an account that is owned BY YOU not your employer, so it's absolutely your money.

I would guess that they could just stop allowing new HSA plans, but you can keep using your HSA dollars as they currently are IF it goes anywhere. HSAs will hopefully be around forever.

I work in this industry, but i don't have any intimate knowledge of myrsc, so i can't help you beyond the basics.

talltexan

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Re: Help with my HSA
« Reply #4 on: March 02, 2017, 06:44:14 AM »
Big HSA fan here, and I had a fairly healthy year in 2016; my gains on investments actually exceeded my medical expenses.

I've invested the HSA a little more conservatively than my other accounts: think of it as roughly a Permanent portfolio type allocation with the cash portion being the spending part of the account.

rachellynn99

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Re: Help with my HSA
« Reply #5 on: March 02, 2017, 12:06:37 PM »
Thanks for your responses. I just put over $500 which leaves me $3500 in my cash portion ( my deductible is $2000). I have also allocated 30% of new deposits to go directly into my investment account. My employer didn't really tell me anything about it when I started working, just here sign up for something. I had no idea!

Mgmny

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Re: Help with my HSA
« Reply #6 on: March 02, 2017, 12:11:29 PM »
Why aren't you directing 100% of all new funds into the investment portion? They aren't doing you any good in a cash account.

rachellynn99

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Re: Help with my HSA
« Reply #7 on: March 02, 2017, 12:32:30 PM »
I don't know. It just seems scary to put it all in there. I guess as long as I leave enough to cover my deductible in my "cash" portion of the account I'll be fine right? I can reallocate as often as I like from what I understand and move money between the investment account and my cash portion, so even if a large claim came up I should be able to move it from my investment account. I literally just learned about this like 2 days ago ( while I was reading the forum here).

talltexan

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Re: Help with my HSA
« Reply #8 on: March 10, 2017, 10:05:01 AM »
Usually the funds have a minimum amount that must be kept in cash. But new contributions could go entirely to the market (assuming you're fine with buying in at these prices).