Who Has the MOST Money in an HSA?

[PhrugalPhan]

We have right at $40K in HSA balances between the two of us. We max out each year on a family HDHP plan and also make a $1K catch-up contribution to my DH’s since he is over 55. We keep a few thousand in a cash account for expenses and the rest is invested. Although I know the general thought is to just let it grow and not use it for medical expenses until a later date, we do routinely use it to reimburse ourselves for medical expenses.

We’ve loved having a HDHP and HSA. In fact, we also maxed out a LFSA this year to use for dental/vision as we both had some high cost dental work that was needed.

I got the ability to have an LFSA this coming year and I am so happy about it.  I am going to max out the LFSA in 2021 and get major dental work done all in one year.

[pdxvandal]

Have about $45k in the HSA, which I started about 5 years ago. It's gained 18% in investment earnings along this year, mostly due to luck as to when the money went in. I've withdrawn about $4,000 total from it for various medical expenses, or to help with cash flow ($2k of the HSA has to be in cash), so I don't have to sell other investments. It's a great tool!

[talltexan]

I got caught with only 40% of my balance invested, while the market has zoomed up this year. Should have more money than I do in that dang HSA!

[Well Respected Man]

We're at $44k last time I checked. I really need to get on the receipt hunt, as we have a lot of expenses. I learned two important things from this thread: that we can pay Medicare premiums tax-free (I thought all premiums were excluded), and that we can contribute without earned income. I'll be adding that into the post-retirement tax avoidance strategy for sure.

[achvfi]

I got caught with only 40% of my balance invested, while the market has zoomed up this year. Should have more money than I do in that dang HSA!

On other hand, You have lots of dry powder ready when next opportunity arises. With election and all other craziness I am sure you will find some.

[cincystache]

We have 30k and maxing it out each year. I contribute via employer contributions so FICA and medicare tax free plus state, local, federal tax free.

[talltexan]

I got caught with only 40% of my balance invested, while the market has zoomed up this year. Should have more money than I do in that dang HSA!

On other hand, You have lots of dry powder ready when next opportunity arises. With election and all other craziness I am sure you will find some.

Thanks for the encouragement. My last rebalance was during first week in Nov. (I do 2/7, 5/7, 8/7, and 11/7), and I tried to move more into a set of small/value etfs. Not enough as it turns out :-)

[Fomerly known as something]

About 30k.  I wish I had switched to an eligible plan earlier.  I don’t plan to use it for health care, I see it as my Long Term care account.

[Caoineag]

About 41k between 2 accounts and 2 people. We use ours for medical expenses as needed but are still fairly healthy so we make more on investments than we spend. Frankly, given how much older people spend on medical issues we could have 200k in the accounts and I wouldn't feel like that was too much...

[on the road]

$32.4K in mine.

[SpecialSnowflake]

$55,000.  8k in cash, 47k in S&P 500 fund. We have never used it for an expense and have not saved any receipts for the health care expenses we have had. I am 59 and DH is 63 and still working. We figure we are getting close to the point that our health expenses will be going up and will just use the HSA for future expenses.

[terran]

I was expecting to see some really high balances, but it seems we're pretty near the top at about $47k.

[iluvzbeach]

HSAs first became available in 2004 and contribution limits have grown over time. Additionally, I think it has taken time for them to become more widely known & understood. Based on this, it doesn’t surprise me that the highest balance I remember seeing in the responses was right about ~60K. Give it ten more years and I’ll bet we’ll see many, many six figure HSA balances.

[terran]

HSAs first became available in 2004 and contribution limits have grown over time. Additionally, I think it has taken time for them to become more widely known & understood. Based on this, it doesn’t surprise me that the highest balance I remember seeing in the responses was right about ~60K. Give it ten more years and I’ll bet we’ll see many, many six figure HSA balances.

Good point, thanks for the extra context. You inspired me to add it all up and if you maxed out an HSA from the first year they were available in 2004 and didn't spend any of it you could have $53,050 with individual coverage and $105,950 with family coverage. I suspect you couldn't invest them in the beginning, but if you could then you could have $154,469 and $308,468 respectively if you invested it all in an S&P 500 index fund (a little bit back of the napkin).

We started ours in 2015 and have maxed it out every year. I can't remember when we started investing it, but it was pretty early on.

[Evgenia]

We currently have $20,500 in ours, accumulated over five years. It would be higher but a couple of things over the years (post-exposure rabies shots; endoscopy and some labs; etc.) ate up about $15k, which made us so glad to have it. We know we'll use it  for one thing or another.

[Need2Save]

It's close to the end of they year so I finally tallied ours up to update some spreadsheets. We are at $74k combined.  It's comforting to know we can pay our high deductibles should one of us get sick in a year in the future (we may be retiring next year so will add some to this before we exit).

[talltexan]

Ours would be higher except that I decided to stop dealing with paperwork for the smaller expenses...if it's under $1,000 I just pay it from the HSA, while I'm saving several large bills for years from now while the principal grows tax-free.

[Purple_Crayon]

HSAs first became available in 2004 and contribution limits have grown over time. Additionally, I think it has taken time for them to become more widely known & understood. Based on this, it doesn’t surprise me that the highest balance I remember seeing in the responses was right about ~60K. Give it ten more years and I’ll bet we’ll see many, many six figure HSA balances.

First time poster, 8 year lurker. I have $67,495.

Full disclosure -- I work for an HSA provider. We see six figure HSAs all the time. Even $500k+

[shinn497]

You all are amazing. I am at 3045 in mine. I don't contribute, just take what my company puts in.

[evme]

After this year's contribution (pending), about $41k. I wish the max annual contribution cap was higher!

[Watchmaker]

It's close to the end of they year so I finally tallied ours up to update some spreadsheets. We are at $74k combined.  It's comforting to know we can pay our high deductibles should one of us get sick in a year in the future (we may be retiring next year so will add some to this before we exit).

You have me beat by $1.5k.

[ender]

about 30k total but I spend out of it every year as... I'm just really too lazy to keep track of everything over the entire period.

Started working FT in 2013 too so I guess I'm pretty happy with that amount.

[talltexan]

Needed to log in for rebalancing, and it's half-way into the five digit territory

[elysianfields]

HSAs first became available in 2004 and contribution limits have grown over time. Additionally, I think it has taken time for them to become more widely known & understood. Based on this, it doesn’t surprise me that the highest balance I remember seeing in the responses was right about ~60K. Give it ten more years and I’ll bet we’ll see many, many six figure HSA balances.

First time poster, 8 year lurker. I have $67,495.

Full disclosure -- I work for an HSA provider. We see six figure HSAs all the time. Even $500k+

I'm in same ballpark, have maxed contributions every year through payroll (this saves OASDI and Medicare taxes, though reduces my SS benefits over the long term) since 2015, invest in index ETFs, pay out of pocket for medical expenses.

@lilkidjesus What were keys to success for those large balances (in addition to what I'm doing)?  Investing in TSLA or other high-flying stock picks?  Longevity?

[talltexan]

Paying expenses outside of the HSA was part of it. I save receipts from very large ones (>$1,000), planning to re-imburse myself later from the untaxed funds.

[JLee]

~$30.5k, single. Maxed contributions for the last ~5.5 years, no withdrawals.

[Mako52]

It seems that a billing transcript with your major medical providers would be a good thing to have long-term.  It all adds up, and quite significantly. 

I understand that a sole proprietor in an S corp can't use an HSA to pay for health insurance as long as he's employed by the company.  So I assume he would have to fire himself and get COBRA coverage from his existing insurer to use HSA funds.  Is that correct? 

We have $31k in ours and are about to make a contribution for 2021.  Late 40s, and plan to continue to let it grow.  Medical expenses NEVER go away, and their inflation is significant. 

Currently using Bank of America for HSA contributions as they have a good number of investment options, but since BofA doesn't rank highly on my list I would welcome any other HSA provider recommendations. 

[achvfi]

$56K in ours too. We have about $25K spent on qualified medical expenses that was not reimbursed over the years. Its a hassle but I save receipts in two different digital locations and on a local drive. I tell myself it will be worth it in time.

We reached 75000! I am sure many others had gained much in last year.

[happychineseboy]

It seems that a billing transcript with your major medical providers would be a good thing to have long-term.  It all adds up, and quite significantly. 

I understand that a sole proprietor in an S corp can't use an HSA to pay for health insurance as long as he's employed by the company.  So I assume he would have to fire himself and get COBRA coverage from his existing insurer to use HSA funds.  Is that correct? 

We have $31k in ours and are about to make a contribution for 2021.  Late 40s, and plan to continue to let it grow.  Medical expenses NEVER go away, and their inflation is significant. 

Currently using Bank of America for HSA contributions as they have a good number of investment options, but since BofA doesn't rank highly on my list I would welcome any other HSA provider recommendations.

Fidelilty is where I keep my HSA and it is great. No fees and you have access to their no fee mutual funds

[better late]

We are at $22k. Finally got my act together and got it invested

[Dave1442397]

Ours is at $20,480 today. I only switched to an HSA-compatible plan in 2018, and didn't realize it had triple tax benefits until late that year. I maxed it out in 2019 and 2020, and play the games necessary to get my full company match, which is a minimum of $400, but goes up to $1600 if I jump through hoops.

[talltexan]

I also have the fidelity health savings account.

The risky portion--this is about 2/3 of the balance--is split between four funds:

• iShares S&P Small Cap Value $IJS
• Fidelity International Value Fund
• MSCI Real Estate
• International Small Cap Value $DLS

And somehow some money slithered into the SP 500 index when I wasn't looking.

[racquetcat]

My wife and I have $28k in 3 HSA accounts between us, my wife's company switched providers and I really need to roll over her old HSA to the new provider to consolidate accounts and make things easier to manage, all but $3k is invested.

A couple questions for all the HSA pros here:
1. My wife and I are on separate health insurance plans, both through our respective employers because it saves us several thousand each year. The question: the max contribution is $7,100 for our family together and also includes employer contributions as well correct? Even though we have separate plans that doesn't increase our family max contribution to $14,200, correct?

2. I know HSAs haven't been around for super long, but has anyone submitted a bunch of receipts 5 or 10 years old that have triggered any push back or audit? Like five figures with of receipts? Our plan is to cash flow medical expenses and save receipts for tax free income in retirement.

[jeromedawg]

Currently at just over $61k *invested* (all in VITSX) in mine. We have around $1100 or so in the 'padding' account that is locked up from being invested. Don't recall when I started it but sometime within the past 10 years I think.

[talltexan]

My wife and I have $28k in 3 HSA accounts between us, my wife's company switched providers and I really need to roll over her old HSA to the new provider to consolidate accounts and make things easier to manage, all but $3k is invested.

A couple questions for all the HSA pros here:
1. My wife and I are on separate health insurance plans, both through our respective employers because it saves us several thousand each year. The question: the max contribution is $7,100 for our family together and also includes employer contributions as well correct? Even though we have separate plans that doesn't increase our family max contribution to $14,200, correct?

2. I know HSAs haven't been around for super long, but has anyone submitted a bunch of receipts 5 or 10 years old that have triggered any push back or audit? Like five figures with of receipts? Our plan is to cash flow medical expenses and save receipts for tax free income in retirement.

@racquetcat , in regards question #1, the limit of $7,100 includes employer contributions. If you mess up and put too much in for a year--I have been there--there's a form you can send in to remove excess contributions right before tax filing.

[terran]

1. My wife and I are on separate health insurance plans, both through our respective employers because it saves us several thousand each year. The question: the max contribution is $7,100 for our family together and also includes employer contributions as well correct? Even though we have separate plans that doesn't increase our family max contribution to $14,200, correct?

Unless one you is covering kids (in which case you're right, you can split the family coverage), if you each have separate HSA eligible coverage then you each can contribute up to the individual annual limit. It amounts to basically the same thing since the individual limit is 1/2 the family limit, but you need to contribute to your own HSA. See https://thefinancebuff.com/hsa-contribution-limit-two-plans-mid-year-changes.html for this and more information about contribution limits.

[racquetcat]

@terran  thanks for the link that was very informative!

My wife is covering our kids on her insurance plan and I'm a single coverage on my plan, so it looks like between the 2 plans we can only contribute the $7,100. I'll still make a minimal contribution to my plan to get the employer contribution but then we'll max out the rest of the $7,100 on her plan.

[Purple_Crayon]

HSAs first became available in 2004 and contribution limits have grown over time. Additionally, I think it has taken time for them to become more widely known & understood. Based on this, it doesn’t surprise me that the highest balance I remember seeing in the responses was right about ~60K. Give it ten more years and I’ll bet we’ll see many, many six figure HSA balances.

First time poster, 8 year lurker. I have $67,495.

Full disclosure -- I work for an HSA provider. We see six figure HSAs all the time. Even $500k+

I'm in same ballpark, have maxed contributions every year through payroll (this saves OASDI and Medicare taxes, though reduces my SS benefits over the long term) since 2015, invest in index ETFs, pay out of pocket for medical expenses.

@lilkidjesus What were keys to success for those large balances (in addition to what I'm doing)?  Investing in TSLA or other high-flying stock picks?  Longevity?

Longevity. Auditing the history of over 4 million HSAs suggests most of the high 6-figure balances were not based upon investment choices. They are often results of other financial instruments that used to exist in some states that the IRS allowed to be rolled into HSAs when they came onto the scene (MSAs and Archer MSAs). That's the more common scenario. But others have grown to six figure balances through being established and consistently maxed out for over ten years or the occasional risky stock pick. For example, I started my HSA in August 2013 and now have about $75k even though I was restricted to the "single" contribution limit for much of it.

[FIreDrill]

Sitting right at 50k total now.  Majority is invested and we don't plan on touching it.  Got about 30 years until traditional retirement and 45-50 years before we may start tapping it for long term care.  We don't plan on contributing any more from here on out.

[pasadenafr]

About $25k. I think I started in 2014, when my previous employer started offering them, and have maxed it out every year since then ("single" contribution limit). At first I did use it to pay for my (limited) out of pocket medical costs, including LASIK. I haven't withdrawn anything in several year. It's invested the same way as my retirement savings: 80/20.