whoisjohngalt
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Post by whoisjohngalt on Oct 20, 2014 8:18:58 GMT -5
Thanks to yogiii I am think I understand HSA But just to be sure.... Are the only differences between the two are the fact that HSA is NOT "use it or loose it" annually and can be taken with an employee no matter where he goes and continued year to year? Also, I know there are annual limits for HSA, but are there overall limits? In other words, let's say I contribute $3K/yr for the next 10 yrs and never use a dime - am I allowed to keep all that money in there indefinitely?
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Deleted
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Post by Deleted on Oct 20, 2014 8:24:34 GMT -5
You can keep it in there forever. HSAs are the best retirement savings vehicle out there. Deduction on the way in, tax free growth and not taxed when taken out.
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whoisjohngalt
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Post by whoisjohngalt on Oct 20, 2014 8:32:23 GMT -5
holy crap!!!
can the money be used for over the counter drugs and things like bandages, etc?
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ArchietheDragon
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Post by ArchietheDragon on Oct 20, 2014 8:35:43 GMT -5
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Deleted
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Post by Deleted on Oct 20, 2014 8:38:02 GMT -5
The rules are pretty much the same as FSA. You can get over the counter meds only if your doctor prescribes them.
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whoisjohngalt
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Post by whoisjohngalt on Oct 20, 2014 8:40:16 GMT -5
I can not believe you can keep accumulating money in there forever!
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ArchietheDragon
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Post by ArchietheDragon on Oct 20, 2014 8:41:18 GMT -5
I can not believe you can keep accumulating money in there forever! At least until Congress changes the rules! ; )
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whoisjohngalt
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Post by whoisjohngalt on Oct 20, 2014 8:41:58 GMT -5
Well, yeah....there is that
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ArchietheDragon
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Post by ArchietheDragon on Oct 20, 2014 8:42:36 GMT -5
I can not believe you can keep accumulating money in there forever! on a serious note, Congress wants consumers to pay for more of their own medical costs. They want to incentivize people to actually have the money to pay for their own medical costs, so this is the way they do it.
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Deleted
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Post by Deleted on Oct 20, 2014 8:43:02 GMT -5
holy crap!!! can the money be used for over the counter drugs and things like bandages, etc? don't think so but neither can the FSA anymore. you would need to find out the rules of your specific plan. as I said, my HSA money can only be used for medical costs and my FSA money can only be used for dental and vision costs.
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Deleted
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Post by Deleted on Oct 20, 2014 8:43:42 GMT -5
My Mom never used hers. She didn't have a lot of money in there because they just started the HSA a few years before she retired. Now she uses it to pay her medigap insurance premiums and she has a pile of receipts from medical bills from her cancer copays that she could turn in for reimbursement whenever she feels she needs some extra income.
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Deleted
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Post by Deleted on Oct 20, 2014 8:43:42 GMT -5
You can keep it in there forever. HSAs are the best retirement savings vehicle out there. Deduction on the way in, tax free growth and not taxed when taken out. not taxed when taken out for medical expenses.....
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Deleted
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Post by Deleted on Oct 20, 2014 8:45:53 GMT -5
You can keep it in there forever. HSAs are the best retirement savings vehicle out there. Deduction on the way in, tax free growth and not taxed when taken out. not taxed when taken out for medical expenses..... Yep, but to not have medical expenses that exceed your HSA before you die isn't a bad thing either. I think most will.
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justme
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Post by justme on Oct 20, 2014 8:48:31 GMT -5
I can not believe you can keep accumulating money in there forever! Well, as long as you have a HSA eligible plan.
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Deleted
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Post by Deleted on Oct 20, 2014 8:53:54 GMT -5
I'm jealous of the HSA people. Two more weeks until our open enrollment. Maybe we'll get offered a high deductible plan this time. Doubt it. I guess I shouldn't complain about a PPO with $400 deductible.
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gooddecisions
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Post by gooddecisions on Oct 20, 2014 9:20:03 GMT -5
My plan for my HSA will be to use it for premiums. I hope to retire before medicare and the HSA will give me more options than I'd otherwise have. Using it for bandages and contact lens solutions would not be a good use for that fund, even if it were allowed. Also, loose rhymes with goose.
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whoisjohngalt
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Post by whoisjohngalt on Oct 20, 2014 9:40:31 GMT -5
I can not believe you can keep accumulating money in there forever! Well, as long as you have a HSA eligible plan. wait, wait, wait - so what happens if you start HSA at job A, save up $10k and then go to job B that doesn't offer HSA eligible plan?
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ArchietheDragon
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Post by ArchietheDragon on Oct 20, 2014 9:41:05 GMT -5
Well, as long as you have a HSA eligible plan. wait, wait, wait - so what happens if you start HSA at job A, save up $10k and then go to job B that doesn't offer HSA eligible plan? You can use your HSA to pay for medical expenses but you can't add it.
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Deleted
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Post by Deleted on Oct 20, 2014 9:42:20 GMT -5
Well, as long as you have a HSA eligible plan. wait, wait, wait - so what happens if you start HSA at job A, save up $10k and then go to job B that doesn't offer HSA eligible plan? You can still use the money in your HSA for qualified medical expenses. You just can't contribute to it anymore. That's why it's so great to save for retirement when medical costs generally go up.
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yogiii
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Post by yogiii on Oct 20, 2014 9:44:24 GMT -5
Stop trying to find problems with HSAs
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whoisjohngalt
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Post by whoisjohngalt on Oct 20, 2014 9:54:36 GMT -5
OK, I think I got it.
Now, the "poll" question:
Would you pick a plan A with higher monthly premiums that covers 85% of doctor's visits and 100% of hospital expenses
Or plan B with lower monthly premiums that covers 85% of everything?
both HSA eligible.
The difference in premiums is ~$100/month
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Deleted
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Post by Deleted on Oct 20, 2014 9:56:26 GMT -5
OK, I think I got it. Now, the "poll" question: Would you pick a plan A with higher monthly premiums that covers 85% of doctor's visits and 100% of hospital expenses Or plan B with lower monthly premiums that covers 85% of everything? both HSA eligible. The difference in premiums is ~$100/month how many hospital/ER visits do you average a year?
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giramomma
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Post by giramomma on Oct 20, 2014 10:00:19 GMT -5
Our HSA has a 6K+ limit.
One thing to consider is the amount your employer is contributing. Our deductible is 3K. Our employer is contributing 340/month this year. I think it's an incentive to get early adopters. There's lots of talk about money for our university being more scarce next year. I think I'd be foolish to turn that kind of money down.
I still have the option of doing more of a traditional health insurance. Those rates went up to $11 to $230/month for family coverage in 2015. I don't think, given the small increase, that the powers that be are ready to get rid of a more traditional health insurance plan or want folks to pay for it. But it's also hard to tell. We have an election coming up, and lawmakers might decide, again, to write another law that says we'll need to pay more for our benefits.
My ILs had a HDHP for a good while. I was surprised. Since they've been retired for 15 or so years.
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giramomma
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Post by giramomma on Oct 20, 2014 10:03:31 GMT -5
OK, I think I got it. Now, the "poll" question: Would you pick a plan A with higher monthly premiums that covers 85% of doctor's visits and 100% of hospital expenses Or plan B with lower monthly premiums that covers 85% of everything? both HSA eligible. The difference in premiums is ~$100/month I'd pick B. And stick some of the extra into an HSA. I'm done having kids. My kids have a history of staying healthy. DH and I arehealthy, and don't participate in risky behavior (we bike with helmets on and always wear our seatbelt.) We've had one kid surgery in a decade, and I've had 2 surgeries in 40 years. DH has had 1.
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milee
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Post by milee on Oct 20, 2014 10:04:18 GMT -5
OK, I think I got it. Now, the "poll" question: Would you pick a plan A with higher monthly premiums that covers 85% of doctor's visits and 100% of hospital expenses Or plan B with lower monthly premiums that covers 85% of everything? both HSA eligible. The difference in premiums is ~$100/month This boils down to how likely you think it is you'll have a hospital visit this year. You have a family of 5 people, so even if you're healthy, that's a lot of people you're covering. So by choosing plan B, you save $1200 but with the risk that if you have a hospitalization that costs more than $8000. For my family, I'd take that bet. Because if you look at our last 10 years of health history, we have had one ER visit/hospitalization and that didn't cost $8000. So even if we paid for that, we'd have banked $1200x10 = $12000 over the years that we could use to pay the 15% . But every family is different, so you need to decide what's likely for your family.
Not to beat the dead horse - but also check to see if each plan has the same network of docs and hospitals that are covered.
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whoisjohngalt
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Post by whoisjohngalt on Oct 20, 2014 10:04:39 GMT -5
I mean, I can only estimate....that's the whole mystery of things.
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milee
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Post by milee on Oct 20, 2014 10:08:37 GMT -5
I mean, I can only estimate....that's the whole mystery of things. Of course. Just do your best and be realistic.
My sis and I are good examples of the extremes. I do just about everything I can to stay healthy and avoid docs and the ER. My sister wants a doc to check out her kids' every sneeze, rash and scrape. My family saves money with an HDHP/HSA, but if her family had that same plan she'd end up paying way more than if she ponied up more for the higher premium/higher coverage plans. Neither is right or wrong - our families are both about as healthy regardless of what level of medical intervention we've chosen - but knowing ourselves and our tendencies helps us pick plans that work best for our individual families' needs.
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whoisjohngalt
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Post by whoisjohngalt on Oct 20, 2014 10:11:09 GMT -5
Up until this year we averaged 1 ER trip per year This year one kid had an outpatient surgery Our HSA has a limit of $3K/yr contribution, I think So, milee , would you still pick plan B? One more caveat - if we pick plan A, employer will put $500 into HSA for this year
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giramomma
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Post by giramomma on Oct 20, 2014 10:17:40 GMT -5
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whoisjohngalt
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Post by whoisjohngalt on Oct 20, 2014 10:19:36 GMT -5
OK, I could be mistaken, I was looking at it VERY late last night
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