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Started By
Message
HSA for retirement
Posted on 2/10/19 at 10:53 am
Posted on 2/10/19 at 10:53 am
I have been doing some research, and it appears to be a nice way to save for retirement with some access to liquidity through medical expense reimbursement.
From brief due dilligence:
Must be enrolled in qualifying HDHP to participate
Tax Deductible contributions
No income limitations
20% penalty plus income tax on non-medical withdrawals prior to 65
Exempt from 20% penalty on non-medical withdrawals at 65 (income tax would apply)- essentially a tradional IRA
Withdrawals for medical expenses are tax free anytime and one can be reimbursed for years passed
Anyone using this account to fund retirement?
My goal is to reduce current tax liabilty, cashflow medical costs and let this baby grow.
If i need funds early, i will just save receipts and be reimbursed for years passed medical expenses.
Those with experience with HSAs please feel free to add anything I left out or correct anything I am offbase with. I am just getting my feet wet with this account.
From brief due dilligence:
Must be enrolled in qualifying HDHP to participate
Tax Deductible contributions
No income limitations
20% penalty plus income tax on non-medical withdrawals prior to 65
Exempt from 20% penalty on non-medical withdrawals at 65 (income tax would apply)- essentially a tradional IRA
Withdrawals for medical expenses are tax free anytime and one can be reimbursed for years passed
Anyone using this account to fund retirement?
My goal is to reduce current tax liabilty, cashflow medical costs and let this baby grow.
If i need funds early, i will just save receipts and be reimbursed for years passed medical expenses.
Those with experience with HSAs please feel free to add anything I left out or correct anything I am offbase with. I am just getting my feet wet with this account.
5
Posted on 2/10/19 at 11:24 am to 3morereps
I’ve maxed mine through HSA Bank the last few years. Still all in “cash”. Will start investing a portion within the next year or two.
Posted on 2/10/19 at 11:29 am to 3morereps
Essentially the same plan I have. It’s an incredible tool.
1) 401k to match
2) max HSA
3) Max Roth and/or max 401k
1) 401k to match
2) max HSA
3) Max Roth and/or max 401k
Posted on 2/10/19 at 11:56 am to PhiTiger1764
Any specific reason to max the HSA first over the Roth IRA?
Posted on 2/10/19 at 11:59 am to 3morereps
quote:
If i need funds early, i will just save receipts and be reimbursed for years passed medical expenses.
What do you mean by this?
Posted on 2/10/19 at 12:01 pm to meeple
What you put into Roth is taxed income (though not taxed on withdrawal). What you put into HSA is both tax deductible income AND not taxed upon withdrawal.
Posted on 2/10/19 at 12:04 pm to meeple
This is not professional advice, but my understanding is one can cashflow current medical expenses and save the receipts. Once one needs liquidity, they can access their HSA to be reimbursed for past medical expenses.
Posted on 2/10/19 at 12:06 pm to jimbeam
I just opened up an HSA with Fidelity, very low fees and lots of investment options. I think they even have a fearure where you can upload medical expense receipts.
Posted on 2/10/19 at 12:34 pm to 3morereps
I had an HSA but the bank had no investment options. A few months ago I moved it all to this new site Lively which is partner with TD Ameritrade. Super easy if anyone has a similar issue. They will do all the work for you in contacting the past HSA bank etc. it’s also free investing whereas some charge you a maintenance fee of some sort.
Posted on 2/10/19 at 1:00 pm to 3morereps
HSA gives you a debit card to pay your expenses.
Posted on 2/10/19 at 1:04 pm to CE Tiger
Okay, one could use a card associated with the HSA to pay medical expenses. They are not required to do so. I am going to use my hsa account as a vehicle to supplement retirement. Thus, cashflowing current medical expenses and not touching my HSA to enable it to grow
This post was edited on 2/10/19 at 1:06 pm
Posted on 2/10/19 at 1:13 pm to 3morereps
Mine has a limit of how much you can carry over to the next year and it is under 1K
Posted on 2/10/19 at 1:19 pm to TigerintheNO
That doesnt sound right.
Are you sure youre not talking about a flex spending account or if it is through your employer maybe their contributions?
Are you sure youre not talking about a flex spending account or if it is through your employer maybe their contributions?
This post was edited on 2/10/19 at 1:34 pm
Posted on 2/10/19 at 1:36 pm to TigerintheNO
I’m not sure what you’re referring to. HSA has no “carryover limit”.
Posted on 2/10/19 at 2:31 pm to 3morereps
Nothing has better tax benefits out there. Nothing.
If offered by your employeer, take advantage of it. And some employers even put money in it for you. (1k single, 2k family).
Just recently started paying our medical expenses out of pocket instead of using the HSA. While that money grows.
I'll pay myself back years down the road
If offered by your employeer, take advantage of it. And some employers even put money in it for you. (1k single, 2k family).
Just recently started paying our medical expenses out of pocket instead of using the HSA. While that money grows.
I'll pay myself back years down the road
Posted on 2/10/19 at 3:18 pm to TigerintheNO
quote:
Mine has a limit of how much you can carry over to the next year and it is under 1K
This might be an HRA and not an HSA. At my company, an HRA is use it or lose it each year. HSA is yours.
Posted on 2/10/19 at 3:55 pm to 3morereps
quote:
This is not professional advice, but my understanding is one can cashflow current medical expenses and save the receipts. Once one needs liquidity, they can access their HSA to be reimbursed for past medical expenses.
This is true. And I use this attribute of the HSA as well.
Posted on 2/10/19 at 7:45 pm to lighter345
Lively almost sounds too good to be true. Tried doing quick research. I guess they make their money off of employer sponsored plans? I’m switching this year so I’m in the market. My current hsa was started last year and is in a local bank with no investment options.
Posted on 2/10/19 at 9:01 pm to SwampBooty
Check out Fidelity, no maintenance fees that i am aware of and lots of commision free investment options. Regular stock/etf trades are minimal. I think $5
Posted on 2/11/19 at 8:43 am to 3morereps
Fidelity is more than likely who I'll go with after looking around. Don't plan on using much of regular stock/etf trading anyways with an HSA.
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