If you are in the position to benefit from extra tax deferral,
jebmke wrote:If you are in the position to benefit from extra tax deferral,
I am not certain but I think the benefit of the HSA is more than tax deferral. If I am not mistaken, when you withdraw from the HSA to pay a medical bill you don't pay tax on this withdrawal. If that is true, it is more than just a tax deferral ... it is a tax avoidance. This could be a big deal, especially if you can do a one time rollover from IRA to HSA. You'd escape the tax entirely.
Perhaps others here know for sure.
LH wrote:I may have to reevaluate my HSA usage, as we have been simply using the HSA money up each year.....
daryll40 wrote:This is one of the criticisms of HSAs from the left. And while I support HSA's as a way to help restore personal responsibility in making financial healthcare decisions, I must confess that I believe the lefties have a point.
Put another way, for those in the upper middle class and above, there is almost never a reason to take money out of an HSA before retirement. It's just fungible money. Pay the high deductible out of other income (that you have because you are upper middle class and above!!) and keep adding to the tax deferral of the HSA.
In fact, don't even think of it as anything do with health. It's an extra IRA! Of course if you do get hit with a catastrophic medical expense, then certainly taking that money out tax free is a good insurance policy.
And while I agree with the lefties that the HSA is just another IRA for "rich" people, it still doesn't change the fact that this STILL causes people to make better financial decisions with their health care dollars. Because any dollars saved then remains theirs, not the health insurance company's.
Angst wrote:I've had mine set up with Saturna Brokerage http://www.saturna.com/hsa1.htm for several years now which I just invest annually in the Total Stock Market (VTI) ETF. The annual fee plus the fee for 1 trade/year nets at about $50.
Easy Rhino wrote:Angst wrote:I've had mine set up with Saturna Brokerage http://www.saturna.com/hsa1.htm for several years now which I just invest annually in the Total Stock Market (VTI) ETF. The annual fee plus the fee for 1 trade/year nets at about $50.
I'm bumping this ancient thread to point out that the Saturna Brokerage account seems like it's a pretty decent option, and one I had not seen mentioned as often as HSA Bank or HSA Administrators. In fact, I don't even think they have an annual fee any more, so you'd just be looking at a single $15 ETF trade per year to avoid an inactivity fee. Not too shabby. Of course, they don't offer banklike services like debit cards or checks, so you'd probably need to combo with a bank-based HSA if you want to use the account for spending.
Has anyone enrolled in the FEHB HDHP through GEHA? Is everything going OK? It appears they are using HSABank as the administrator, and that there is a self-directed investment option through TD Ameritrade. It does appear there are no fees other than $15/trade commissions once your money gets to TD. However, you get hit with $2.25/month in fees if your HSABank savings account balance is less than $3000 so it would take you at least 13 months (2 years of contributions) to be able to use the investment option without incurring fees.
I'm not sure its worth what appears to be a whole lot of bureacracy (at least the way FEHB and GEHA have implemented the HDHP with HSA option).
alisa4804 wrote:Yes, I have a year in with GEHA HDHP, and linked HSA Bank. You'll see that GEHA both contributes to your HSA and pays all monthly fees - so the employee using GEHA HDHP with HSA Bank pays no fees. There are 2 deposits monthly, one from GEHA and the other from employee monthly payroll deduction.
alisa4804 wrote:HSA Bank sends you a credit card to use for medical expenses - if you use it as a credit card (with your signature required, not as a debit card) there is no charge. I tried it on a small pharmacy purchase - it worked.
alisa4804 wrote:Next year I will set up the linked TD Ameritrade account and make a lump sum transfer to it. There are Vanguard ETFs available at no fee, but may be some other fees. The whole package sounds like one of the better HSAs discussed on this forum.
VictoriaF wrote:I have been procrastinating with moving money out of HSA Bank. After I make my contributions in early 2013, I should start using TD Ameritrade. Comments from those who are already using it are welcome.