Bogleheads

[Cernel]

The company I work for offered for the first time this year a High Deductible Health Care option with the ability to contribute to a Health Savings Account (HSA). I signed up for this option since my medical costs have been relatively low and there is no cost to me to be enrolled in the High Deductible plan. Currently, I am contributing at a rate that will result in a yearly contribution of $2500.

My question is, should I consider contributing to the maximum level which is $6700 (I am 55 years old, thus I can contribute the catch-up amount of $900) after I have completely funded my 401(k) and Roth IRAs?

Additional information:
My HSA is with the Bank of America
The current rate of interest om the account is 3.5%
Once I achieve a balance of $1000 I can invest in a limited number of Mutual Funds that BoA offers.

Any suggestions/thoughts would be appreciated.

[allancoleman]

I made my own 2008 HSA deposit for $6,700 in January of this calendar year , Cernel . And I've made several other deposits in past years too and now have approximately over $21k in a taxfree account available for future medical expenses for the wife and I both . And I got the deduction for all my HSA deposits on our past tax returns too . Plus we'll also have the benefit of my wife's seperate individual HSA deposts the next couple of years when I go on Medicare next year and before the start of her Medicare coverage . That should then give us over $30k to spend in the future .

HSAs are a win win situation for me .