Angel!
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Post by Angel! on Oct 31, 2014 23:01:51 GMT -5
I did enjoy putting the costs in a credit card to get brownie points before getting reimbursement. I feel stupid that this has never occurred to me. I could have been earning points on 4k a year.
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Deleted
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Post by Deleted on Oct 31, 2014 23:06:31 GMT -5
I feel stupid that this has never occurred to me. I could have been earning points on 4k a year. Well, now you know for the future. And I always hit the big operations such as the hospitals with my Amex so I can get 2% cash back! I have a Visa that gives 1.5% for the others.
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schildi
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Post by schildi on Oct 31, 2014 23:22:20 GMT -5
I did enjoy putting the costs in a credit card to get brownie points before getting reimbursement. I feel stupid that this has never occurred to me. I could have been earning points on 4k a year. Dang! Never thought about that either. There is a 2% instant cash saving paying with my Amex card. Nice!
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Baby Fawkes
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Post by Baby Fawkes on Nov 1, 2014 0:15:09 GMT -5
I did use the HSA when I started my last job. It was September and he had an endoscopy in November, which ate up the $2,500 deductible. Then he needed a follow-up in January. Oops. It came in handy. I did enjoy putting the costs in a credit card to get brownie points before getting reimbursement. So far I've been lucky enough that for the small amount that I've had to pay out of pocket they've always accepted credit card for the purchase as well.
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Deleted
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Post by Deleted on Nov 1, 2014 4:55:00 GMT -5
Not only that, but ELFCU lets me transfer my HSA contribution via credit card too. Yay points.
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schildi
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Post by schildi on Nov 1, 2014 15:45:09 GMT -5
Not only that, but ELFCU lets me transfer my HSA contribution via credit card too. Yay points. oped, can you explain that? I am with ELFCU also (did you follow my recommendation back then?), and would like to know how you do these transfers using a Credit Card.
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Deleted
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Post by Deleted on Nov 1, 2014 18:42:23 GMT -5
Yes. They let me do my online deposit into the account that feeds my HSA with my credit card. So I 'paid' for my deposit with my cc. Then paid off my cc.
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Deleted
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Post by Deleted on Nov 1, 2014 18:52:45 GMT -5
Yes. They let me do my online deposit into the account that feeds my HSA with my credit card. So I 'paid' for my deposit with my cc. Then paid off my cc. doesn't your deposit into your HSA come from your paycheck?
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Deleted
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Post by Deleted on Nov 1, 2014 18:56:15 GMT -5
I don't have a paycheck. I lump sum deposited.
At ELFCU I had to open a savings account and then move money from that to my HSA, and then move money within my HSA to a TDAmeritrade account. It was a bit convoluted to set up, but then I could fully invest it.
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Deleted
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Post by Deleted on Nov 1, 2014 18:57:51 GMT -5
I don't have a paycheck. I lump sum deposited.
At ELFCU I had to open a savings account and then move money from that to my HSA, and then move money within my HSA to a TDAmeritrade account. It was a bit convoluted to set up, but then I could fully invest it. I'm so confused. where do you get your health insurance from?
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Deleted
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Post by Deleted on Nov 1, 2014 19:03:38 GMT -5
On the exchange.
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bookkeeper
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Post by bookkeeper on Nov 2, 2014 8:52:37 GMT -5
DH has a HSA account through his employer. He retired a few months ago. We plan to keep the account of about $10,000 for emergencies.
Going forward, it appears to me that we can contribute after tax dollars to our HSA in retirement (as long as we keep a high deductible health insurance policy) and take a deduction from our income on line 25 of IRS tax form 1040. This not as good a deal as money going into the account pre-tax through his payroll, but it is better than a kick in the toe.
We are currently spending $1100/mo to stay on COBRA. I think we can buy on the open market for a couple hundred less per month. We would clear out the HSA pretty fast paying for health insurance premiums, so I feel at ease contributing the max to our HSA next year.
Unless I am thinking of it wrong, for 2015 we can contribute $7650 to our HSA. 25% (our tax bracket) of that is $1912. I will write one check a year to my HSA account to save $1912 on the amount I have to pay for health insurance anyway.
As we age and are losing our dependents and deductions, the HSA seems like one deduction we can keep.
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Deleted
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Post by Deleted on Nov 2, 2014 8:56:07 GMT -5
Are you guys sure HSA can go to insurance premiums? I thought only limited situations, like Cobra, qualified...
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bookkeeper
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Post by bookkeeper on Nov 2, 2014 9:31:00 GMT -5
After reading the IRS rules, you are right. HSA money can be used to pay for COBRA, but not for regular health insurance premiums.
It can be used to pay for long term care insurance premiums which we pay around $2000 a year for.
I still like the idea of getting a tax deduction for saving money. Medical expenses are only going up and I like the idea of having a savings account dedicated to medical emergencies.
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Angel!
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Post by Angel! on Nov 2, 2014 9:43:17 GMT -5
I know everyone doesn't have the option,but if you can you should have contributions come from your paycheck. You won't pay FICA taxes on the money that way.
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schildi
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Post by schildi on Nov 2, 2014 9:44:07 GMT -5
I found this on the topic: www.hsacenter.com/faqs.htmlCan my HSA be used to pay premiums? No, this would be a nonmedical withdrawal, subject to taxes and penalty. Exceptions. No penalty or taxes will apply if the money is withdrawn to pay premiums for: Qualified long-term care insurance; or Health insurance while you are receiving federal or state unemployment compensation; or Continuation of coverage plans, like COBRA, required under any federal law; or Medicare premiums
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Deleted
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Post by Deleted on Nov 2, 2014 11:18:33 GMT -5
I know everyone doesn't have the option,but if you can you should have contributions come from your paycheck. You won't pay FICA taxes on the money that way. I won't pay taxes on it anyway, it's just that it will all be sorted out end of the year...
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Angel!
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Post by Angel! on Nov 2, 2014 11:22:44 GMT -5
I know everyone doesn't have the option,but if you can you should have contributions come from your paycheck. You won't pay FICA taxes on the money that way. I won't pay taxes on it anyway, it's just that it will all be sorted out end of the year... You won't pay income taxes on the money. Unless I am mistaken, I don't believe you get a refund on FICA taxes paid on the money.
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Deleted
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Post by Deleted on Nov 2, 2014 11:42:53 GMT -5
Well, technically I don't pay 'FICA' we pay 'self employment tax', but honestly I'm not sure at this point. I might have figured wrong? As I'm not sure above the line deduction minimizes the amount I pay self employment tax on? I'm going to have to go look at the forms...
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Deleted
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Post by Deleted on Nov 2, 2014 11:48:04 GMT -5
Yes, it does look like I pay 'FICA' on the HSA contribution. I'll have to look into that! Thanks.
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