Invest HSA

I thought it was fairly common. I keep a chunk of money in the "spend" side of the HSA and shift over whatever is about about $1k to the invest side. It's not much, but it beats the catastrophically shitty interest rates that the HSA spend side typically has.

It's true. That's why some people consider HSA to be even more valuable than a 401k match. No other account type is triple tax advantaged like HSA (tax deductible contributions, tax deferred growth, tax free withdrawal for eligible medical).

One strategy is to pay out of pocket if u can afford it and let the HSA grow. Then in the future re-imburse yourself. There is no limitation currently when you can re-imburse expenses.

I've got over $50k in my HSA (all of it in VTI or equivalent) I keep track of expenses (anything over $50). I currently have over $10k in expenses and will re-imburse myself in the future when I need some tax free income after I've retired.

I learned on this board that the play is to pound the HSA but pay cash for medical expenses if you’re able so it can grow tax deferred. Simple concept but never crossed my mind.

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Then when I have a medical bill I can still submit for reimbursement or let it ride as an IRA.

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Yes, but if you put in the max for the year, use some, you can not reload it for that year.

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Yes, but if you put in the max for the year, use some, you can not reload it for that year.


What?

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If you put in lets say $8,550 (the max for a family,$4,550 for single) for the year, have a surgery and pull 2k to pay for it, you're not able to add the 2k back in the same year.

Max out your HSA every year and don’t withdraw from it if possible. Let it ride just like a Roth IRA, but better. Invest it in a Bitcoin ETF for the very long term.

To do this, you need an HSA with a brokerage account, such as Fidelity, not a bank

When you are old, you will have a ton of money for medical expenses and long term care.

My provider requires I keep $1K in the cash balance but there is a setting to automatically roll anything in excess into investments.

I've never done an HSA, but new employer will provide some matching funds if I do...

Can I get the 5th grade explanation of how to make the most of it? Max can contribute? At what point can you spend on non-health stuff? Etc...

Question - how do you do this if it's in a company plan in a bank account?

if i have 10k in it, i can do a wire transfer out and into my Fidelity account?

And down the road as long as the "principle" is used for medical expenses I am ok?

appreciate any feedback

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Open a new account with Fidelity, specifically an HSA Account. Their plans allow for any type of investments within their universe, on their platform. Mutual Funds, Stocks, ETF’s etc.

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So basically use the HSA to get tax free gains like a Roth, but its pre-tax?

Can use those funds to pay for medical expenses, but should pay out of pocket and let that to continue compounding interest?

After 60, can withdraw penalty free for any reason?