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Health Savings Accounts
Posted on 8/21/12 at 4:46 pm
Posted on 8/21/12 at 4:46 pm
My place of employment is changing to a new provider. They are suggesting utilizing a health savings account as an option. The literature they sent sells it as essentially a 2nd Roth IRA if you never pull from it. Caveat is that it looks to raise copayment and deductables. Essentially it seems to only pay off years down the road...
If I rarely go to the doctor right now is this a good investment?
If I rarely go to the doctor right now is this a good investment?
7
Posted on 8/21/12 at 5:02 pm to Bmath
Magic 8 ball says..........Yes
Posted on 8/21/12 at 5:17 pm to Bmath
quote:
If I rarely go to the doctor right now is this a good investment?
That is the best situation. High deductible, high copays, possible $6150 or so tax deduction if you put that in there each year. There are several Banks that will give you the ability to invest in whatever you want. If it is through your employer, your options in this regard may be limited if they require you to have the account through a certain Bank.
Also, you can use the account for vision and dental.
This post was edited on 8/21/12 at 5:19 pm
Posted on 8/21/12 at 5:57 pm to Zilla
I looked at switching last year... But doesn't Obamacare take away most of the incentives to use HSA's vs traditional insurance?
Purely a question... I might be mistaken
Purely a question... I might be mistaken
Posted on 8/21/12 at 6:02 pm to BACONisMEATcandy
bacon I've been told the same thing. Allowed amt put in is cut almost in half and can't remember what else but I remember thinking that by the time he finished with it there would be no advantages to having it.
BUT then I read it applied to FSA ... and not HSAs.
??? Anyone ???
BUT then I read it applied to FSA ... and not HSAs.
??? Anyone ???
Posted on 8/21/12 at 6:29 pm to Bmath
I'm just a bit lost because they put an insurance app on everyone's desk Friday, and sent emails about the switch due to BCBS jacking up the premiums. Then this morning we start getting emails about how we have this HSA option. An email chain starts around the office with questions, but nothing gets answered.
There are a lot of unknowns:
1) Will my boss match any portion of my contribution. Seeing as his IRA contribution is only 3% I find it doubtful.
2) What are my projected co-pay or deductibles going to look like with this plan through Humana.
3) Could I switch out if I find this to be too much of a financial burden.
Worst off is that I have to decide by tomorrow morning. Thanks for the notice...
There are a lot of unknowns:
1) Will my boss match any portion of my contribution. Seeing as his IRA contribution is only 3% I find it doubtful.
2) What are my projected co-pay or deductibles going to look like with this plan through Humana.
3) Could I switch out if I find this to be too much of a financial burden.
Worst off is that I have to decide by tomorrow morning. Thanks for the notice...
Posted on 8/21/12 at 6:39 pm to Bmath
My employers administrator(Bank) for my HSA has about 1600 mutual funds available and a brokerage account available once the HSA is above $1500. The before tax deduction limit for 2012 is $6250, 2013 will go up, forgot the amount. The reason for the $1500 is for current expenses, cash is in a savings vehicle earning 0.3%. I use a debit card for payment, but with this plan checks are available.
Posted on 8/21/12 at 7:29 pm to Bmath
I have an HSA and think it is just dandy. It saves me a ton on premiums and since I don't go to the doctor very often at all it is just tax-free savings, a second traditional (not Roth) IRA. In fact, I usually just pay medical expenses out of pocket so I can keep it growing.
I don't know the specific details of your situation but my employer sweetens the pot with a significant contribution. Before the HSA I had a "use it or lose it" flexdollar deal. Now I contribute as much as before, get to keep the money at year-end and get employer contributions on top of that.
So for me it was an absolute no-brainer, but YMMV.
I don't know the specific details of your situation but my employer sweetens the pot with a significant contribution. Before the HSA I had a "use it or lose it" flexdollar deal. Now I contribute as much as before, get to keep the money at year-end and get employer contributions on top of that.
So for me it was an absolute no-brainer, but YMMV.
Posted on 8/21/12 at 8:07 pm to Bmath
A lot of your questions are specific for your employer.
Your company must be switching to a High Deductible plan as that is the only way you would be elgible for an HSA.
Your premiums should drop from what you are paying now. When they made this an option at my employer the difference in premiums was around 40%.
I took the savings I was getting on my premiums plus a little more and that's what I put into the HSA. I'd love to put more but I'm not an OT baller.
For me the HSA is what makes the high deductible plan worthwhile. The money is yours and rolls over every year if you don't use it.
Hope this helps.
Your company must be switching to a High Deductible plan as that is the only way you would be elgible for an HSA.
Your premiums should drop from what you are paying now. When they made this an option at my employer the difference in premiums was around 40%.
I took the savings I was getting on my premiums plus a little more and that's what I put into the HSA. I'd love to put more but I'm not an OT baller.
For me the HSA is what makes the high deductible plan worthwhile. The money is yours and rolls over every year if you don't use it.
Hope this helps.
This post was edited on 8/21/12 at 8:09 pm
Posted on 8/22/12 at 11:04 am to Bmath
HSA's are a decent deal.
My company contriutes to another fund to give us a $1500 cushion, but we were told that those don't carry over.
My company contriutes to another fund to give us a $1500 cushion, but we were told that those don't carry over.
This post was edited on 8/22/12 at 11:09 am
Posted on 8/22/12 at 11:12 am to dewster
quote:
My company contriutes to another fund to give us a $1500 cushion, but we were told that those don't carry over.
Flexible Spending Account aka FSA?
You should look into the kinds of things that are okay to buy with that money. It's much more broad than you would think.
Posted on 8/22/12 at 12:01 pm to TheHiddenFlask
quote:
Flexible Spending Account aka FSA? You should look into the kinds of things that are okay to buy with that money. It's much more broad than you would think.
Thanks to the current administration, it's getting less so.
Also, I think this is the first year that $2500 is now the contribution max (was $5000).
So much for not increasing taxes on the middle class (I know, wrong board).
Posted on 8/22/12 at 12:20 pm to Bmath
$50 a week pre-tax goes to my HSA. My employer contributes $40/ week to it. Therefore, I get a total of $360 a month put away in my HSA.
This is free money and comes in handy when I need it every now and then.
This is free money and comes in handy when I need it every now and then.
Posted on 8/23/12 at 6:11 am to 4LSU2
quote:
$50 a week pre-tax goes to my HSA
1. You are not taxed on this $50
2. You will not be taxed on any earnings/growth while in the HSA
3. You will not be taxed when funds are pulled from the HSA for qualified medical expenses
The HSA rolls over from year to year and is portable. At least that is how it is set up now. I don't know how our government will change this
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