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HSA sucks: Help

Posted: Tue Feb 13, 2018 4:53 pm
by jackal
My current HSA charges a fee of 0.36% per year to invest in a vanguard fund. I was going to contribute my money as a lumpsum and transfer it to HSA bank but my employer doesn't allow that. I have two options:
1. Take the employer contribution. Contribute to my HSA account over the year. Transfer it at year end.
2. Transfer my HSA contribution now (My employer puts in the whole amount upfront). Transfer it to HSA bank. Put my part of the contribution directly into HSA bank now.

Any pros or cons to either way? Any difference in payroll taxes owed?
Thank you.

Re: HSA sucks: Help

Posted: Tue Feb 13, 2018 5:04 pm
by aristotelian
Best deal I have found is Lively. Same TD Ameritrade platform for about half the price of HSA Bank.

viewtopic.php?t=228522

You want your employer to make the contribution, that way you should avoid FICA tax.

Re: HSA sucks: Help

Posted: Tue Feb 13, 2018 5:17 pm
by mhc
#2 will have higher payroll taxes.

Re: HSA sucks: Help

Posted: Tue Feb 13, 2018 5:23 pm
by Easy Rhino
I would go ahead and contribute to your employers, and then do a rollover which doesn't require assistance from the bank, to your preferred HSA every 12+ months.

Re: HSA sucks: Help

Posted: Tue Feb 13, 2018 6:04 pm
by jackal
How much payroll taxes are we talking about(for someone who has to pay past the ss taxes anyways...make over 250k in taxable income)? I read the amount I directly contribute is fed/state tax deductible but that payroll taxes are lost. The reason for the question: let’s say it’s 2.5%: am I better off just taking the hit and investing the money for a growth of 2.5% by yer end.
Thank you!

Re: HSA sucks: Help

Posted: Tue Feb 13, 2018 6:16 pm
by nps
jackal wrote:
Tue Feb 13, 2018 6:04 pm
How much payroll taxes are we talking about(for someone who has to pay past the ss taxes anyways...make over 250k in taxable income)? I read the amount I directly contribute is fed/state tax deductible but that payroll taxes are lost. The reason for the question: let’s say it’s 2.5%: am I better off just taking the hit and investing the money for a growth of 2.5% by yer end.
Thank you!
Medicare is 1.45 percent up to $200k, 2.35 percent above.

Re: HSA sucks: Help

Posted: Wed Feb 14, 2018 1:31 pm
by jackal
It wouldn’t be too dumb to accept the 2.35% penalty to contribute to a stock heavy portfolio at year beginning then right?

Re: HSA sucks: Help

Posted: Wed Feb 14, 2018 6:52 pm
by nps
Are you not able to put the max in quickly through payroll deduction?

Re: HSA sucks: Help

Posted: Thu Feb 22, 2018 11:14 pm
by jackal
nope... only over the year!

Re: HSA sucks: Help

Posted: Fri Feb 23, 2018 8:24 am
by Olemiss540
You make 250k but are concerned about $25 per year.

Roll it over at the end of every year and don't worry about it. .3 ER is ALOT to a Boglehead, but 12 months is nothing.