Sup Greenie, I know you’ll hook us all up, as always.
After my dentist appointment this morning (no, not with a BSD lion killing dentist), I began pondering about an HSA. Could I theoretically open one, fund it when I have bills (ie this dental invoice), and recognize the tax savings?
Where do you or your clients custody their HSA’s? Which custodians allow for investment allocation versus a money market account?
Does your employer offer one? It’s not something you can just go and set up. You’ll have to elect the high deductible plan coupled with an HSA when benefit re-enrollment rolls around in a couple months.
Generally, unless you’ve gone through a life changing event (marriage, divorce, birth, death) you can’t change your health plan in the middle of the year.
As for investing your HSA money, it may depend on the plan/custodian, but you should be able to start investing in a select list of funds after you hit $5,000.
yep. i love it. ive saved about 5k on it. very low cuz u can only contribute 3k, and i recently just signed up when i got booted off my moms plan. i like hdhps considering i dont really go to the doctor if ever. you can spend $$ tax deferred and you get a tax deductibile. I use it for eyes. dental. medical. i initially did it just to save money for lasik. anyways. anything above 2k for me i can invest. just fyi.
So I can’t just open one up via Wells or something all willy nilly? It has to be tied to some insurance plan?
i think so. i did mine with optum via employer. when u quit, i think u can change it though.
To qualify for an HSA, you:
- Must be enrolled in a high-deductible health plan (HDHP) that does not cover all medical expenses.
- Cannot be covered under another health insurance plan, including Medicare coverage, with certain exceptions.
- Cannot be claimed as a dependent on someone else’s tax return.
If you meet those requirements, you can just open one on your own at anytime. Here’s a good one that I have.
And don’t use the funds for medical expenses anytime soon. Keep your receipts and withdrawal the funds in retirement. The funds do not have to be withdrawn the year of the expenses. Let the money grow. The tax deduction is used the year the funds are deposited, so max it out every year and thank your friendly government for another regressive program that helps the rich avoid and defer taxes.
Greenie will confirm I’m sure.
Oh, and even if you don’t have a HDHP, you CAN open one up. Nobody confirms anything. Just be carefull if you get audited. You would be breaking the law.
Laws don’t apply to BSD’s like CvM.
You fund the HSA with contributions to HSABank, then you can open a self-directed investment account with TDAmeritriade.
HSABank’s website has a pretty good Q&A section on there as well.
You might want to check out IRS Publication 969.
My PPO deductible is $300 with a max of $1500. Looks like I’m out.
I don’t fugg with the tax man.
The following table shows the minimum annual deductible and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2015.
Self-only coverage** Family coverage** Minimum annual deductible $1,300 $2,600 Maximum annual deductible and other out-of-pocket expenses* $6,450 $12,900 * This limit does not apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limit applies.
Self-only HDHP coverage is an HDHP covering only an eligible individual. Family HDHP coverage is an HDHP covering an eligible individual and at least one other individual (whether or not that individual is an eligible individual).
This is also true. All you have to do is check the box saying “I’m in a HDHP!”. The IRS has much bigger fish to fry than that.
But if you get caught, you’ll likely stay on the naughty list for a long time.