HSA Recommendation

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
tsipareht
Posts: 13
Joined: Tue Jan 20, 2015 2:51 pm

HSA Recommendation

Post by tsipareht » Fri Nov 08, 2019 3:34 pm

I would like to know if I should contribute to my HSA?
HSA Premium is $100/month. No match from employer.

Currently maxing out my 403b/TSP (19k)/ 457 (19k) / DCP (56k).

I was thinking of signing up for the HSA, but this will cost me $100/month (about a third of the value of the HSA), and signing up for TriCare Reserve Select which is about $54/month, so I won't have to worry about the high deductible.

Thoughts?

snailderby
Posts: 340
Joined: Thu Jul 26, 2018 11:30 am

Re: HSA Recommendation

Post by snailderby » Fri Nov 08, 2019 4:47 pm

You can only contribute to an HSA if (among other things) you have a high-deductible health plan. Is TriCare Reserve Select a high-deductible health plan?

michaeljc70
Posts: 5746
Joined: Thu Oct 15, 2015 3:53 pm

Re: HSA Recommendation

Post by michaeljc70 » Fri Nov 08, 2019 4:54 pm

I'm not sure I follow. $100 premium? An HSA is a health savings accounts. Savings accounts don't have premiums. They may have fees but I cannot imagine a $100/mo fee.

User avatar
elcadarj
Posts: 170
Joined: Tue Aug 30, 2016 8:21 am

Re: HSA Recommendation

Post by elcadarj » Fri Nov 08, 2019 5:02 pm

You can't have an HSA with Tricare. Tricare plans ' deductibles are too low to qualify as High Deductible Health Plans under IRS rules. IRS Publication 969 page 3: https://www.irs.gov/pub/irs-pdf/p969.pdf

Edited to correct: You can't contribute to an HSA while under Tricare. If you already have an HSA from prior enrollment in an HDHP you can keep your HSA and use its funds but, again, you can't add funds to your HSA while enrolled in Tricare.

Topic Author
tsipareht
Posts: 13
Joined: Tue Jan 20, 2015 2:51 pm

Re: HSA Recommendation

Post by tsipareht » Sun Nov 10, 2019 3:58 pm

My apologies I should clarify.

My full time employer has a HSA with a high deductible, and monthly premium of $100/month.
What conditions are people using to use it as a primary insurance?

I mentioned TriCare because I am eligible for Tricare Reserve Select to offset the high costs of the high deductible in the event I do get tragically injured and to use it as a primary insurance instead of having to pay the high deductible with the HSA.

User avatar
jeffyscott
Posts: 8252
Joined: Tue Feb 27, 2007 9:12 am
Location: Wisconsin

Re: HSA Recommendation

Post by jeffyscott » Sun Nov 10, 2019 4:24 pm

tsipareht wrote:
Sun Nov 10, 2019 3:58 pm
My full time employer has a HSA with a high deductible, and monthly premium of $100/month.
I assume you mean that your employer offers an HDHP (high deductible health plan) with an HSA. The HDHP is the insurance that would have the high deductible and the monthly premium, not the HSA.
I mentioned TriCare because I am eligible for Tricare Reserve Select to offset the high costs of the high deductible in the event I do get tragically injured and to use it as a primary insurance instead of having to pay the high deductible with the HSA.
If you are covered by anything other than an HDHP, you can not contribute to an HSA. For example, if you had an HDHP and your spouse had family coverage that is not an HDHP, then neither of you would be eligible to contribute to an HSA. It is unclear if you are saying that you are covered by Tricare, but if you are and Tricare is health insurance coverage that is not an HDHP then you can not contribute to an HSA, whether or not you sign up for your employer's HDHP.
Time is your friend; impulse is your enemy. - John C. Bogle

Topic Author
tsipareht
Posts: 13
Joined: Tue Jan 20, 2015 2:51 pm

Re: HSA Recommendation

Post by tsipareht » Sun Nov 10, 2019 5:04 pm

Thank you for the input everybody. I appreciate it.
jeffyscott wrote:
Sun Nov 10, 2019 4:24 pm
tsipareht wrote:
Sun Nov 10, 2019 3:58 pm
My full time employer has a HSA with a high deductible, and monthly premium of $100/month.
I assume you mean that your employer offers an HDHP (high deductible health plan) with an HSA. The HDHP is the insurance that would have the high deductible and the monthly premium, not the HSA.
I mentioned TriCare because I am eligible for Tricare Reserve Select to offset the high costs of the high deductible in the event I do get tragically injured and to use it as a primary insurance instead of having to pay the high deductible with the HSA.
If you are covered by anything other than an HDHP, you can not contribute to an HSA. For example, if you had an HDHP and your spouse had family coverage that is not an HDHP, then neither of you would be eligible to contribute to an HSA. It is unclear if you are saying that you are covered by Tricare, but if you are and Tricare is health insurance coverage that is not an HDHP then you can not contribute to an HSA, whether or not you sign up for your employer's HDHP.

Post Reply