HSA funding pre-tax?

Pretty sure it does if you want to avoid paying taxes on each check.

Otherwise you can just deduct it on your returns.

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I don't believe I have the option for an HSA, unless i changed my insurance plan

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You have to be on a high deductible plan in order to have it. However, if the individuals covered are reasonably healthy its a clear choice.

Although putting it on with kids would make me a bit ansty, but depending on the ages I probably would do it anyway. You are mostly rolling the dice for the first year or two as you build the HSA reserves.

If your employer offers the option, I would strongly consider it. 5k in an HSA is worth significantly more than 5k in an FSA.

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Although putting it on with kids would make me a bit ansty, but depending on the ages I probably would do it anyway. You are mostly rolling the dice for the first year or two as you build the HSA reserves.

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Yup. We staged our switch to an HDHP... The first year I moved to to one by myself and built a nice nest while the Wife and kid stayed on a PPO with her employer. And then this year we all moved to my company's HDHP. This has been an incredible tax shelter vehicle, and the company match is great too.

Some plans let you invest portions of it also. I have a plan now that i contributed 6500 to a couple years back that is now worth 9.5k

Sweet gig if your healthy and have the option.

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Some plans let you invest portions of it also. I have a plan now that i contributed 6500 to a couple years back that is now worth 9.5k

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A HSA is separate from a HDHP. While the plan provider often has their associated HSA set up, with a built in convenience factor, you don't have to use it.

And if your provider doesn't allow you to invest, run away and sign up with someone who does.

One of the big advantages of the HSA is the triple tax advantage for health expenses: tax free in, tax free growth, tax free out. If you are not invested with a portion of your HSA, you aren't getting the most out of it.

It's automatic at my work. Just have to elect in. Same with my commuter expenses

I don't know why we don't come up with plans for our young adults age 18-30 that are HDHP that have huge Max out of Pockets of like $25,000 but dirt cheap premiums. This is truly what they need, and what they want to pay for.

Something like $25/ month. Maybe even less. Unfortunately just the admin costs would be close to that now a days probably. Just cover the very basics, have them pay into the system, and have them covered for freak accidents. I don't see how its not a win-win for almost everything.

I'm treating mine like another Roth basically. Saving up a certain amount to keep in cash then I will start investing the rest. I have good fund choices.

May need to include this on my next round of benefit elections.

I just already save a shitload: 10% to 401k and 10% to our company stock that I get at 15% discount.

That's a personal call for risk tolerance.

As far as the HSA goes, I'm perfectly fine with my provider's built in limit of 1000. If your cash amount is below this, it will automatically divert 100% of your contributions to the cash balance.

Covering more people who may be in delicate health? You might want to be closer to your deductible.

But in my case:

1000 is close enough to my deductible to be fine using that as my limit.

HSA is not my only source of liquid assets.

I would be extremely reluctant to hit on my HSA for funds due to how powerful it is tax wise, and how limited it is with contribution limits.


So essentially I treat my HSA as an intermediate risk investment segment of my overall portfolio that I plan on tapping only in SHTF medical scenarios, or as a secondary non medical emergency fund to raid in the event of job loss. (Trips to dentist, optometrist, etc all get logged but paid out of pocket. I can later reimburse myself with a few keystrokes with no time limit or penalty so I let these small medical events add up and the balances work for me )