{ "media_type": "text", "post_content": "22, healthy, single, M. Should I really max my HSA? I completely understand the triple tax savings but my thought process is I don’t think I’ll have a large med expense for a while. I know, I know, I know anything could happen but the likelihood is pretty low rn and I don’t want to lock this money up for solely health costs when I rather be saving for a house down payment or continued education. I still plan to contribute to it, but should I really max it out at my age??", "post_id": "5eac3ae8b3fa8f001c71f62e", "reply_count": 55, "vote_count": 4, "bowl_id": "59064a3cb12379001006592c", "bowl_name": "Personal Investment Chatter" }

22, healthy, single, M. Should I really max my HSA? I completely understand the triple tax savings but my thought process is I don’t think I’ll have a large med expense for a while. I know, I know, I know anything could happen but the likelihood is pretty low rn and I don’t want to lock this money up for solely health costs when I rather be saving for a house down payment or continued education. I still plan to contribute to it, but should I really max it out at my age??

like
Posting as :
works at
You are currently posting as works at
Highlighted IconHIGHLIGHTED

Yes - build some savings in there. And you can use the $ for other things like OTC meds and such too. Your life can change in an instant and healthcare is insanely expensive. One MRI or CT scan can cost you a thousand $ if something did happen. I’d say you may not need to max out contributions each year if your super healthy but maybe aim for 75%. I envy you tbh. Ive hit the max OOP limit for my policy every year since I’ve been on my own, so even with my max contributions it’s like the money goes directly out the door :-/

In your position, it’s low risk, high impact (like a pandemic!). You never know if you’re sitting on a congenital heart defect that needs surgery or will bust a knee and need an MRI. I’m an otherwise healthy 22 year old that has spent over $2k this past year on a knee injury (it would be around $10k without insurance). In the end, it’s a question of risk tolerance and opportunity costs, but know that healthcare is truly outrageously expensive and will pummel you if your luck fails.

likefunny

It’s not even about that though It’s a Roth IRA on steroids, you should max it out even if you have zero medical costs until you’re 60+ years old. In fact, you shouldn’t even use it if you do have medical expenses..... let it grow until you’re old

like
Recent IconRecent

100% yes. Think about it like a 401k contribution but with an option to exercise it without penalty for medical expenses early! At worst it’s just another retirement account, at best it’s a super highly tax advantaged account for medical expenses. If you don’t have enough to max both 401k and HSA (which you should), I would even argue HSA takes precedence

like

Agree for this reason! I never did it when I was younger (just started now at 34) and I wish I could go back and do it.

like

We're talking about $3550 here folks (including employer contribution). If you contribute, at minimum, the premium difference between your PPO and HDHP, with an employer match of say $500-1000 annually... you're already in the $2500 range. Not sure I'd squabble about $1000... whether or not to have a HDHP is a different conversation, but maxing vs not is not a very difficult decision.

like

You don’t necessarily have to max, but I’d contribute whatever your deductible is each year. It’s pre tax! And our healthcare system is fucked up

like

23 healthy single female! Until last October I had to do an endoscopy and it ran me 1200+. HSA saved my ass. So yes, definitely contribute. You’re always “healthy”, until you’re not. Like another user said- it’s also smart to take advantage of the tax break.

likesmart

J1: how do you calculate this amount?

like

If you pay for your medical bills out of your checking and save receipts, then you can reimburse yourself out your HSA any time you want. My wife and I are paying out of pocket for all our pregnancy related bills (18k) and we’ll have 18k tax and penalty free saved for a rainy day

like

Pass, rather have the cash for investments now, then use the profits from the investments to vest your 401k just to hedge yourself

likefunny

Wut. You can invest your HSA....

likefunny

I've had irregular heartbeats in the past and have been treated for this. Even though my heart is structurally healthy and I'm in good shape, I still get 2 or so check ups done a year which include EKGs and then Echos every 2 years or so maybe? Point is that HSA is not worth it for me and even if I'm missing out on a savings, I don't think it's enough to make a significant difference. What I don't spend on HSA ends up going into taxable investments which is important for my retirement planning because I will need a bucket of this account apart from my ROTH IRA, Roth 401K and traditional 401K. Investing in a funds with a higher expense ratio than the low cost index funds available would something that would have a greater impact on your retirement than choosing to not use a HSA and more secure healthcare plan. That's not to say that HSA should never be an option. It's honestly a year by year decision.

like

Correct. Can only get HSA with HDHP. But it only takes a few preventative healthcare visits a year + 1 or 2 recurring prescriptions and hit that no problem. And that’s largely maintenance/preventative making sure I don’t have any worse issues or we find them early. I’m a single female, 32 but have had the HDHP + HSA for the last 6 years. I’ve saved money by having the HDHP and basically used my HSA as a checking versus the other plans offered

like

Hard pass. Cash now for investments now.

like

EY1 is correct.

I do about 1000-2000 a year. It will pay off. I choose 2050 fund and let it sit.

like

Thanks I appreciate it

pretty sure you can invest the HSA, and once you retire you can take withdrawals from it like a 401k

like

Yup

Pretty sure after you reach a certain age you can use the money for non medical expenses. The withdrawal will be taxed but not penalized.

I thought only $500 rolls over ea yr?

A2 thank you!

I’d recommend it. Even if you’re healthy now, one day you’ll need it. I applied my invested HSA earnings (saved in prior years even though I was healthy) to my wife’s hospital costs when she gave birth last year. The fact that I can use the funds on my family makes it super appealing.

And yes OP you should max it out. Triple tax advantage bro, I would do that first and then Roth IRA and then 401k

Unless 401k has matching, then I’d do match amount, HSA, Roth, rest of 401k

like

I love my HSA and unlike an FSA you can invest that money and let it grow to cover your medical expenses when you need them or in retirement just expenses. Plus usually you can pull the investment back to cash for health related expenses.

And when you move / switch jobs, you can bring the HSA with you (as oppose to lost higher premiums for nothing)

like

I max out and invest it in the market.

I dont know sorry I invest pretax.

Related Posts

It's health insurance season in the United States of "Every Person for Themselves." Is there a silver lining to a primarily coinsurance based plan, rather than mostly copays? This is a first for me.

like

Any opinions on MITRE ? I have a job offer from them. Healthcare practice.

like

What’s a realistic amount to save on 130K of gross earnings per year assuming no loans and your goal is to save? I would imagine it’s (assuming HCOL) 85K net - (1.5K a month plus 100ish for utilities) 20K a year, 10K on necessities like food(mix of eating out/in, car insurance, gas, phone), 5-10K on luxuries like vacations, nice-to-have clothes, subscriptions, miscellaneous. This would net to 45K-50K saved a year right? What are your thoughts? Any costs I’m grossly underestimating/missing?

like

Anyone know if I need to buy separate travel insurance to get a visa on arrival in Dubai? Can’t I just use the one which comes with my Chase Sapphire Reserve.

like

Favorite term life insurance provider/policy and why?

like

Hi ladies- can you tell me what you pay in premiums for your healthcare? My employer is saying they’re competitive in the market but I don’t think that’s the case and I’d like to negotiate based on that. Monthly premium for you (and fam if@you have kids?)

like

Hi 🐠! HFMA (Healthcare Financial Management Association) offers Rev Cycle and Finance certifications. Do you guys think it is worth getting if you are in the beginning of your career? (Cont)

like

Looking to automate every paycheck and let it run for next 10-15 years. I have vanguard and fidelity. Any suggestion on funds with low expense ratios?

like

Anyone know about health related opportunities at FAANG? I’m EM w/ 5YOE in our health practice with MD background and curious what roles/skills I might be suited for.

like

Does pwc reimburse for professional organization dues like NABA?

like

Can you expense an admirals club day pass instead of dinner?

like

Hi Desi 🐠 I need US health plan recommendations for my parents (non-resident B1/B2). My dad recently had major surgery and wants further eval in the US if they visit (post current crisis). Are there any comprehensive plans that would cover him? Or should we be looking to pay OOP for his care/treatment in the US?

like

Does insurance cover egg freezing? Anyone done this? Tips?

What do you usually do with money you have saved up for a big expense but won’t use for a few years? I have about 30k in a 1 year CD rn and not sure if I should invest it in ETFs or hold onto it in a HYSA after it matures. Saving it up for my wedding in 2.5 years. TIA!

like

Any tips to spend all the FSA health balance before my last day? Thanks in advance.

like

Who else finds uber tips coming in on a separate transaction insanely annoying for doing expense reports?

like

Is anyone else having issues getting production insurance right now? We’re getting blocked for a shoot in Seattle due to Coronavirus.

like

Anyone has had lash extensions before? Would you recommend? Some things that are important to me: - maintenance, health of eyes and lashes, how realistic they look

like

Left PwC about a month ago. I cleared my expense buffer on Concur before leaving and then submitted any pending charges using the form issued by HR. However I still have an outstanding balance of 1K

like

Additional Posts

Possible to get into PE as an associate if you take an A2A promotion?

like

Which role do you think is more challenging/stressful: - Controller of mid-sized public company, or - Big 4 Audit Manager

like

jetblue cancelled my flight due to "weather" and "crew". but the snow was days ago. if it's mostly crew issues, what can I do?? this is gonna mess up my work

like

Do any Deloitte partners have metrics on the number of layoffs this past month across the board? Is it just overblown on fishbowl?

like

Anyone have advice about the process for moving in-house at Apple? Soon-to-be 6th year securities/investigations associate at V20 (lateraled from a V10) with FAANG (but not Apple) client experience who would appreciate intel on process, likelihood of success, and Apple in-house culture.

like

My project is requiring a lot of time commitment during early hours and evening and it’s getting hard to pick up LO from day care. I wanted advise frm ppl who have hired help for pick/drop off.

What are the best/most respected DEI certifications or programs? I would like to choose one that really walks the walk, and highlights all of the various areas of a diversity wheel to ensure it is well rounded.

like

ACN related: Has anyone just taken online training super fast just to put in training WBS? I have been on the bench for some time, so trying not to kill my unassigned time

like

I have 4.3 yrs of Experience and have been offered Associate Consultant Positionof 14 LPA and Accenture offered Level 10 at 13 LPA with 2.5 Variable. Which one would be better for career prospect and growth. Amd do yiu think the experience i have and position offered is low.

like

Enough to concentrate on analytics at MBA? Or should I do a bootcamp

like

Got an exit finally and need some advice. Current comp at 165K in Chicago. Option 1 : 200k remote anywhere from the US or Option 2: 240k in LA. Which would you choose ?

like

What's the range for mid-experienced SM at Big 4 these days (base-cash benefits-variable)? I want to compare notes - recently received a Big 4 offer but they were not able or willing to match my current package (about 95k all in including variable).

likeuplifting

Got selected in EY TTT as Tax senior for Test automation role. In TTT do we work for clients or we work in internal IT Applications for Tax

like

MD or MBA? I got into both. I know most will say choose the MD, but hear me out: MD: I'd have to go into a specialty to have a good IRR given my salary & the $200K+ debt. By the time I'd be done with residency the US may be in a single payer system. US doctors make 3x the amount in France and 2x vs UK.. I currently make what a doctor makes in France. That could be the future here, too. MBA: 1 yr. Europe. I'd make about 15-20% more vs. now.

likefunny

Hi all, Will I get offered after pre background check, if background score in 1 employment shows as 'Decisional' I mean to say they find as reason absconded and rest all (3 employment & education, criminal database search) are pass. Please let me know will they offer e offer letter as they shared salary brkup and joining date before background check.

like

Would you accept capping billable hours at 40/week in exchange for being able to work while completely remote?

like

Gift ideas for mom, family, or baby for a family that’s having a second baby?

like

It's health insurance season in the United States of "Every Person for Themselves." Is there a silver lining to a primarily coinsurance based plan, rather than mostly copays? This is a first for me.

like

Any opinions on MITRE ? I have a job offer from them. Healthcare practice.

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
Download Fishbowl to see what others are saying
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the Fishbowl app

Get realtime notifications and see
what's happening in your industry
from the palm of your hand.

For account settings, visit Fishbowl on Desktop Browser or

General

Legal