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Does EY pays semi-monthly or bi-weekly?
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Use it as an investment vehicle. That’s what I do. I don’t intend to use any of this money for medical. It’s a good financial strategy to use HSA strictly for investing and pay cash for medical expenses. (Read an interesting book on this)
Once you’re 65, your HSA account is treated like a traditional IRA account if you withdraw money for non-medical purposes. So, if you don’t use for any medical expenses, it is essentially another IRA account for you once you hit 65.
@OP - here is an awesome article about how to best utilize your HSA if you can afford it (whether you’re healthy or not) https://www.madfientist.com/ultimate-retirement-account/
Perfect
HSA is tax free money going in. Invest the funds in the account, which also cannot be taxed since it’s not income. Money is tax free at 65 or if withdrawal qualifies under withdrawal rules. So it’s basically like an investment account, but better because there’s zero taxes if done properly. Your firm also contributes so that’s a win, and money travels with you since it’s YOUR HSA account, not the firms. 💰
Yea and if you can you shouldn’t withdrawal from it for medical expenses. Just keep the receipts til you retire and let the HSA grow.
It is literally a smaller 401k, can save for retirement AND you can also withdraw for healthcare related expenses with zero tax implications! It’s awesome actually. You can never use it but pay no income taxes on this earned income and just pay taxes when you reach Medicare eligibility, just like 401k teaching retirement age
It’s actually better than 401k you can always use it for medical expenses. Or you withdraw it at retirement age and it’s taxed like a 401k.
Yup. Once your hit 65, any non-medical related expense, it’s treated as a traditional IRA.
Do HSAs have to be setup independently by you or by your employer?
@BCG I highly doubt you can open one unless the health insurance has changed significantly since I was there. You have to be on a high deductible plan to be eligible to open — and the $5 baby definitely does not count
No. Max 401k and IRA first.
EY1 doesn’t know what he/she is talking about
Wait can someone explain this more please?? Would you use the HSA funds when you’re older or not? I don’t understand. I thought you can only have one with certain medical plans. Wouldn’t this become unnecessary when retired because of medicare??
Once you’re 65, your HSA account is treated like a traditional IRA account if you withdraw money for non-medical purposes. So, if you don’t use for any medical expenses, it is essentially another IRA account for you once you hit 65.
Can’t you also use part of the HSA to contribute to a down payment on a house without penalty?
You can take a loan from your 401k for this. Not sure about HSA.
Where I learned about this: Ramit Sethi I Will Teach You To Be Rich. HSA chapter. Highly recommend book overall but he breaks HSA down very easily here. Very helpful
Can you have an HSA and regular medical. I rarely go to the Dr after the annual check up but not trying to risk a John Q situation
No I believe you need a high deductible health plan.
Do you all pay medical expenses with your HSA? OR just let it ride as investment vehicle and pay medical with cc