[Bill]

I’m considering opening a Health Savings Account (HSA) but am curious about the pros and cons. For those who have an HSA, has it been worth it for you?

Did it help you save on healthcare expenses, or has it become more of a hassle? I know HSAs come with tax benefits and can be invested, but are those advantages significant enough in practice?

How does an HSA compare to other savings options, especially when it comes to medical expenses or long-term planning?

Any advice on what to look out for, or common pitfalls?

I’d appreciate any personal insights or experiences to help me decide if an HSA is the right choice for me.

[Jarrett]

Is there a limit to how much I can contribute to my hsa annually like IRAs?

[Matt]

Almost nothing in personal finance is 100% a yes or no. While HSAs are amazing, if your particular plan has huge costs associated with their HDHP a different option may be better.

You have to do the math.

[Shaun]

Typically yes, I wish I had used mine from the beginning. I used one for 3 years before I retired I only wish it had been 10 plus.

I was maxing out my 401k etc but this would have been my next tax free money storage mechanism.

[Steve]

Yes. Especially when you’re young and healthy and can bank that money along with lower health insurance premiums.

If your custodian allows you to invest in stocks, even better.

[Jeff]

100%! Triple tax free if used for qualified medical expenses and can be used like a traditional IRA at 65.

After employer 401k match…if you’ve already maxed out your IRA, HSAs often next best option.

Medical expenses are inevitable.

It’s a tax advantaged emergency fund for those expenses plus the IRA-like benefits later in life already mentioned.

[Sherri]

Yes, tax benefit well worth it. I don’t like the HSA company my employer uses so a couple of times a year I transfer money to my Fidelity HSA where there’s fewer rules and more investment choices.

[Maria]

Are there alternatives to HSAs that have the tax advantage if your employer does not offer an HSA?

[Bobby]

If you are relatively healthy. Otherwise you could pay a lot higher medical bills than just copays and lower deductibles.

HSA plan is usually associated with high deductibles

[Jeremy]

If you are already on an HDHP then yes, triple tax advantaged and you will ALWAYS have medical expenses in your life.

Think of it as a super powered retirement account used for medical expenses: taxed advantaged like a Roth and investment opportunities within the account.

[Joe]

It depends on which HSA eligible plans are available to you but I find that the tax benefits of the HSA and the lower premiums of the HDHP more than offset the high deductible.

At least for my plans, the in network out of pocket max for the HDHP is the same.

I use the HSA purely as an investment account and don’t withdraw although I do save all receipts and insurance EOBs to claim later.

It’s a little extra work to stay on top of.

[Hugo]

Depends on your health. This should be the primary deciding factor

[Ron]

I’m self-employed and planning on opening one at Fidelity this week even though my accountant told me not to bother since I pay any medical bills through my business anyway

[Sean]

If you have an hsa eligible plan it’s certainly worth having and using the hsa.

[Brian]

Any insight on if HSA’s are still beneficial to have if planning for military retirement medical for self and spouse?

[Rudy]

Yes, absolutely. Especially if you can move past it being a clearing account and start investing your HSA dollars.

[Sam]

Depends on your preference for doctors. I don’t have High deductible plan since this plan requires me to have a primary doctor and need my primary doctor to refer me to a special doctor.

So, if you don’t need that, and aren’t sick enough, High deductible would be better since it’s usually cheaper then PPO.

[Author]

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