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Post by minnesotapaintlady on May 25, 2023 11:20:52 GMT -5
The HSA limit for 2024 is increasing to $8300 for Family ($550 increase) and $4150 for Individual ($300 increase). |
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haapai
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Post by haapai on May 25, 2023 11:43:36 GMT -5
No change in the catch-up contribution limit, though.
This seems like a good place to ask a question, and exactly the right person to ask it of.
I currently have two HSAs. One is through my employer and the other is an orphaned plan (my employer switched HSA custodians/providers and I never got around to transfering it). I will turn 55 this year and will be eligible to make a catch-up contribution. Unfortunately, my workplace plan does not allow me to do so. Total contributions to this HSA are capped at the 2023 limit of $3850. I've been debating putting the extra $1000 in my old HSA but I'm uncertain of the benefits of doing so. Not paying social security and medicare on what I put in through payroll deductions is a big part of the sweetener for me and I don't know if there I'll get that break if I make contributions any other way.
Do you know more about this than me?
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Post by minnesotapaintlady on May 25, 2023 11:55:35 GMT -5
You don't get the benefit of not paying ss and medicare contributing on your own, but you can still deduct the $1000 on your taxes when you file.
And that reminds me...I turn 55 next year too. So I guess my limit is $9300.  |
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haapai
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Post by haapai on May 25, 2023 12:12:03 GMT -5
Thank-you. I probably won't do it then.
I'm currently in the 12% federal income tax bracket and nowhere near to the end of it. That probably won't change after retirement, in either direction, unless we go back to 15%. (My state has a single income tax rate with a very low exclusion, so it's pretty much the same story there -- a pure bet on how and where the future tax rates will be set.) I just can't see the point of putting restrictions on how I can use the money being worth the slim chance of a fairly small payoff if I bet on tax rates going up. Plus, I've got a silly amount built up in the two accounts and some fees being levied. It's growing now faster than I know how to spend it, so there's a good chance that I may have to take it as income instead of using it for health care.
Other folks might be looking at a very different set of underlying facts and come to a very different choice.
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haapai
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Post by haapai on May 25, 2023 12:18:23 GMT -5
Does anyone here have the option of having catch-up contributions to an HSA taken out by payroll deduction? Is the limit that my employer has put on how much I can put in via payroll deductions odd or standard?
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Post by minnesotapaintlady on May 25, 2023 12:25:21 GMT -5
My company allows the catch-up to be taken via payroll.
eta: I had to go look at the benefits guide because I'm not yet 55. The 401K catch up just appeared as an option the year I turned 50.
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haapai
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Post by haapai on May 25, 2023 12:55:10 GMT -5
My company allows the catch-up to be taken via payroll.
eta: I had to go look at the benefits guide because I'm not yet 55. The 401K catch up just appeared as an option the year I turned 50.
To be honest, there may have been an option to contribute the catch-up HSA amount that popped up briefly when I signed up for 2023 health insurance etc last November. I was 53 at the time and may have mis-read or misunderstood the question that they asked about age and clicked on the wrong box.
The same ambiguous question may show up again this November. I'll know how to answer it then. Right now when I attempt to change my HSA contributions, they tell me that I am already maxed at $3850 and there's nothing that I can see about catch-up contributions or my age.
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Rukh O'Rorke
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Post by Rukh O'Rorke on May 25, 2023 13:27:24 GMT -5
My company allows the catch-up to be taken via payroll.
eta: I had to go look at the benefits guide because I'm not yet 55. The 401K catch up just appeared as an option the year I turned 50.
To be honest, there may have been an option to contribute the catch-up HSA amount that popped up briefly when I signed up for 2023 health insurance etc last November. I was 53 at the time and may have mis-read or misunderstood the question that they asked about age and clicked on the wrong box.
The same ambiguous question may show up again this November. I'll know how to answer it then. Right now when I attempt to change my HSA contributions, they tell me that I am already maxed at $3850 and there's nothing that I can see about catch-up contributions or my age.
call hr? I think we can't change once we do it for the benefit year, only at enrollment for new year benefits can we change things., like flexible. |
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teen persuasion
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Post by teen persuasion on May 26, 2023 11:03:33 GMT -5
Thank-you. I probably won't do it then.
I'm currently in the 12% federal income tax bracket and nowhere near to the end of it. That probably won't change after retirement, in either direction, unless we go back to 15%. (My state has a single income tax rate with a very low exclusion, so it's pretty much the same story there -- a pure bet on how and where the future tax rates will be set.) I just can't see the point of putting restrictions on how I can use the money being worth the slim chance of a fairly small payoff if I bet on tax rates going up. Plus, I've got a silly amount built up in the two accounts and some fees being levied. It's growing now faster than I know how to spend it, so there's a good chance that I may have to take it as income instead of using it for health care.
Other folks might be looking at a very different set of underlying facts and come to a very different choice.
Fidelity does HSA accounts, if you want to transfer accounts to avoid fees, and have access to better investment options. You could use HSA balances on dental, vision, COBRA, and Medicare expenses in the future in addition to the usual copays, etc. |
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Post by minnesotapaintlady on May 26, 2023 12:10:02 GMT -5
Thank-you. I probably won't do it then.
I'm currently in the 12% federal income tax bracket and nowhere near to the end of it. That probably won't change after retirement, in either direction, unless we go back to 15%. (My state has a single income tax rate with a very low exclusion, so it's pretty much the same story there -- a pure bet on how and where the future tax rates will be set.) I just can't see the point of putting restrictions on how I can use the money being worth the slim chance of a fairly small payoff if I bet on tax rates going up. Plus, I've got a silly amount built up in the two accounts and some fees being levied. It's growing now faster than I know how to spend it, so there's a good chance that I may have to take it as income instead of using it for health care.
Other folks might be looking at a very different set of underlying facts and come to a very different choice.
Fidelity does HSA accounts, if you want to transfer accounts to avoid fees, and have access to better investment options. You could use HSA balances on dental, vision, COBRA, and Medicare expenses in the future in addition to the usual copays, etc. Not to mention at age 65 you can use HSA money for anything penalty free. You just pay ordinary income tax on it, so it's essentially just extra 401K space. |
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Rukh O'Rorke
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Post by Rukh O'Rorke on May 27, 2023 17:57:55 GMT -5
Fidelity does HSA accounts, if you want to transfer accounts to avoid fees, and have access to better investment options. You could use HSA balances on dental, vision, COBRA, and Medicare expenses in the future in addition to the usual copays, etc. Not to mention at age 65 you can use HSA money for anything penalty free. You just pay ordinary income tax on it, so it's essentially just extra 401K space. Crap…. I thought take free for everything at some point 😟 |
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Rukh O'Rorke
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Post by Rukh O'Rorke on May 27, 2023 17:58:38 GMT -5
Thank-you. I probably won't do it then.
I'm currently in the 12% federal income tax bracket and nowhere near to the end of it. That probably won't change after retirement, in either direction, unless we go back to 15%. (My state has a single income tax rate with a very low exclusion, so it's pretty much the same story there -- a pure bet on how and where the future tax rates will be set.) I just can't see the point of putting restrictions on how I can use the money being worth the slim chance of a fairly small payoff if I bet on tax rates going up. Plus, I've got a silly amount built up in the two accounts and some fees being levied. It's growing now faster than I know how to spend it, so there's a good chance that I may have to take it as income instead of using it for health care.
Other folks might be looking at a very different set of underlying facts and come to a very different choice.
Fidelity does HSA accounts, if you want to transfer accounts to avoid fees, and have access to better investment options. You could use HSA balances on dental, vision, COBRA, and Medicare expenses in the future in addition to the usual copays, etc. I should look into this! Thanks teen!! |
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Post by minnesotapaintlady on May 27, 2023 18:03:57 GMT -5
Not to mention at age 65 you can use HSA money for anything penalty free. You just pay ordinary income tax on it, so it's essentially just extra 401K space. Crap…. I thought take free for everything at some point 😟 Nope. Only for medical. But, it's still better than 401K because there is always that option and not most people will have medical expenses in retirement even if it's just medicare supplemental premiums which you can pay with your HSA. |
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Post by minnesotapaintlady on May 27, 2023 18:06:39 GMT -5
Fidelity does HSA accounts, if you want to transfer accounts to avoid fees, and have access to better investment options. You could use HSA balances on dental, vision, COBRA, and Medicare expenses in the future in addition to the usual copays, etc. I should look into this! Thanks teen!! I have an HSA at Fidelity. It's nice. No fees and you can invest in anything they offer. I tend to not leave more than 5K in cash at HSA Bank (who employer uses). Once it gets that high I transfer a couple thousand over to Fidelity. |
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Rukh O'Rorke
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Post by Rukh O'Rorke on May 27, 2023 18:35:43 GMT -5
I should look into this! Thanks teen!! I have an HSA at Fidelity. It's nice. No fees and you can invest in anything they offer. I tend to not leave more than 5K in cash at HSA Bank (who employer uses). Once it gets that high I transfer a couple thousand over to Fidelity. Oh! Did not know you could transfer from existing employer… I have one from long ago that is in some place that I want to transfer. After that will look into options for transferring out from current employers one. |
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Post by minnesotapaintlady on May 27, 2023 18:47:37 GMT -5
I have an HSA at Fidelity. It's nice. No fees and you can invest in anything they offer. I tend to not leave more than 5K in cash at HSA Bank (who employer uses). Once it gets that high I transfer a couple thousand over to Fidelity. Oh! Did not know you could transfer from existing employer… I have one from long ago that is in some place that I want to transfer. After that will look into options for transferring out from current employers one. I just tell Fidelity to do it and they handle everything. They just need to know where it is and the account number. |
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