[Ama]

Should I get an HSA next year? It looks like you can invest up to $4150 per year and use it for non medical stuff after age 65.

I am 41 and healthy *knock on wood*.

I have an FSA now but an HSA looks like possibly a better plan.

[Lisa]

Yesss. You also don’t have to wait until 65 to use it for medical stuff so far as I’m aware- we’ve been using ours since I was in my early fifties for sure.

It just has to be for medical expenses.

[Deborah]

An HSA plan is a good deal but you can only contribute to one if you have a high deductible health insurance plan.

[Marianne]

HSA’s are really dependent on what kind of health insurance user you are.

If you have health care needs that are chronic, it might not be the best plan for you.

In our family, I’m a low user but I carried for the whole family and had two higher users.

The deductible killed us because of that.

I would crunch the numbers and remember the deductible starts over every January.

[Allison]

If you are eligible for HSA then YES!
Contributions are pre-tax.
Grows tax free.

Distributions, so long as they’re used for qualifying medial expenses, are also tax free.

It’s a great retirement investment if you can afford both current medical expenses and HSA contributions.

Either way, you can use HSA for eligible medical expenses at any time and any age.

[Pam]

You could max out the HSA and put only what you have to use by the end of year ie: child care in the FSA the HSA rolls over year upon year FSAs do not.

HSA funds still need to be used for health related reasons after age 65.

Look into it further for more clarity if needed.

[Carlyn]

So, you can only sign up for a HSA if you have a High deductible plan?

[Nichole]

I believe HSA ‘s are better and yes you can use it towards health insurance after retirement too.

[Mindy]

You will need to enroll in a plan that is eligible for HSA contributions.

Whether you get coverage on your own or through an employer, the plan must indicate that it is a HDHP health savings account eligible plan.

As long as you understand the risks and rewards for these plans, they are a great option.

[Tracey]

To clarify- FSA is governed by the federal government. Most plans allow you to rollover a specified amount from one year to the next.

But it’s mainly a use it or lose it plan.

If you have $1000 left and the plan allows a rollover of $250, you lose the difference.

And it doesn’t go your your employer, the government takes it.

You have to carefully think before you decide how much to put into an FSA.

And unlike the HSA, if you leave your employer, you can only submit expenses up to your last day of employment.

[Laura]

we donate the abut $4k per year – we’ll be able to use it to pay for our Medicare A/B/D as well as our out of pocket expenses when we retire.

We try not to use it right now.

We have a few times for some big medical bills – but in general, we pay our deductible/bills at the time they occur and don’t touch the HSA

[Lilith]

If you can afford that amount yearly maybe consider a high yield savings or bond instead.

[Stephanie]

To qualify to contribute to a Health Savings Account (HSA), you must meet the following criteria:

Be enrolled in a High Deductible Health Plan (HDHP) that meets certain requirements set by the IRS.

You cannot be enrolled in Medicare or be claimed as a dependent on someone else’s tax return.

You cannot be covered by any other health insurance plan that is not a qualified HDHP.

You cannot be enrolled in a Flexible Spending Account (FSA) or a Health Reimbursement Arrangement (HRA).

If you meet this criteria, you can open an HSA and contribute up to the maximum annual limit set by the IRS.

Keep in mind that there are additional rules and regulations that govern HSAs, so it’s a good idea to consult with a professional.

[Author]

Posts