Thread: HSA advice

Results 1 to 5 of 5
  1. #1
    Member Matt D's Avatar
    Join Date
    Dec 2010
    Location
    Marion, OH
    Posts
    547

    HSA advice

    Guys - looking at putting some money in to HSA account for long term health care costs. 47 years old. 401K and brokerage accounts set for early partial retirement in 4 years and just thinking this would be a a good addition to my other stuff. Opinions and suggestions?

    thanks

  2. Electrical/Wiring/Trolling Motors Moderator CatFan's Avatar
    Join Date
    Jun 2004
    Location
    SW Indiana
    Posts
    26,089
    #2
    Tax free on both ends is hard to beat. Downside is you have to be on a high deductible plan.
    If you have integrity, nothing else matters. If you don't have integrity,
    nothing else matters.​

  3. Member
    Join Date
    Sep 2007
    Location
    SE Wisco/Phoenix AZ
    Posts
    104
    #3
    As CatFan said the high deductible plan is the only consideration when going the HSA route, BUT it's a triple advantage account in that you can build up your self-insurance ability, it negates your tax basis up front and you don't pay tax on the distributions when the time comes. Compounding interest inside the plan is your friend!

    Personally, my family utilizes one and we pay cash for any qualified expenses NOW rather than swiping our HSA card. We have a monthly budget line item for routine dental and medical checkups for the two kids and ourselves. We then keep the detailed receipts (and photo copies on a hard drive kept in a fireproof safe). We can get reimbursed for those expenses (should we choose) prior to qualified age for drawing on the account. It works well when you have a 6 months liquid emergency fund stashed to compliment the HSA.

    If you're able to max your 401k, and an IRA, an HSA is a great pillar to also help you build future wealth! Great job for looking into it Matt!

  4. Banned
    Join Date
    Nov 2012
    Location
    Muscle Shoals, Alabama-Wilson Lake
    Posts
    10,043
    #4
    When I retired at 58 1/2, I had to pay about $450 a month for "my share" of healthcare for myself and my wife. I had enough saved up in my Retiree Health Savings Account to pay the $35K premiums until getting on Medicare @ age 65.

    I would fund that account as much as humanly possible, as 14 years on outside insurance will be a very expensive proposition--far more than my healthcare co-pays.

  5. Member
    Join Date
    Nov 2013
    Posts
    16,927
    #5
    As noted, if eligible, max it out annually. Even before other funds, IMO.
    I did it and, same as previous poster, I’m using it to gap until Medicare.