How do you handle your HSA?

I put my family plans out of pocket max in cash at the beginning of the year. The rest is invested. I transfer every year depending on what we spent the previous year.

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If you have other cash available then I would invest anything over the deductible and just earmark any other savings.

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Yeah, I'm going to continue payroll deductions the rest of the year for sure to max this year out and probably max out next year as well to hopefully never really have to pay medical expenses OOP. That will give me roughly 2.5 times OOP, plus any growth from the investments.

From what I'm gathering, I'll let the cash account build to $6k, move the thousand into the investment account, and then move all further deposits directly into the investment account.

That would be my plan

I fully fund but never use. It’s tax free in and tax free out. Would rather let it grow because I’m sure I’ll need it down the road.

Everything above the minimum cash amount invested. Minimum cash value is equal to my deductible so that works out well too.

Invested money is very easy to liquidate (not sure about settlement times or if it's available immediately) if I need to, and I'm not worried about returns at the moment.

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Invested money is very easy to liquidate (not sure about settlement times or if it's available immediately) if I need to, and I'm not worried about returns at the moment.

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I think you need to know this to know how aggressive you want to be if you do not want to keep the $5k in cash. If you can cash out within 60 days, you would still be able to pay any medical bills before they start with the annoying calls/letters. Plus, if you're upfront with them, they are usually willing to work with you.

And, if it's a planned procedure, you can always time the liquidation.

Can you pay the medical bills out of pocket and reimburse yourself from your HSA?

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Can you pay the medical bills out of pocket and reimburse yourself from your HSA?

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As far as I can tell, yes. As long as it's an eligible expense.

My contributions are coming as a payroll deduction into my HSA. I am investing all of my HSA money. I generally let it build up some and then move into the market. I was really just commenting on the above posters that seemed to be concerned with the timing of getting the money out of the market to pay a medical bill. I don't see that as an issue. If there was a time sensitive bill, I can pay out of pocket and reimburse myself from the HSA. There might be rules about doing it in the year or within a certain time frame, I don't know. I am also taking a long term perspective here as this is more for retirement or at least later versus right now.

I invest all contributions over the minimum (2K) cash amount into 50% target retirement fund and 50% REIT and use it as a supplemental retirement account. We pay all medical expenses out of pocket for now and plan on doing so until we retire. If a major medical event happens before then it will have grown triple tax advantaged. I invested two years worth (2019 and 2020) in March and April of this year so I have received a 30% return so far!