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Help me with HSA account
Old 12-06-2012, 10:40 AM   #1
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Help me with HSA account

Since Nov 1, the employer changed health insurance from EPO-type to HSA-type with deductible of $4000. Reading around the web gave me a clue that I can 'open HSA account and contribute to it'. This money can be used towards my prescription drugs. Medco is charging me more than what Walmart will for 3 refills of 30-day supply so I would like to minimize these costs.

Can anyone explain me, in a bit didactic fashion, considering I am total noob (because I really am), on
- how and where do I 'open' this account?
- If the contributions to this account have to be made by me and my employer? (I have a family plan, employer pays for me and I pay for the family)
- If these contributions have to be same every month?

Thanks a ton in advance.
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Old 12-06-2012, 11:01 AM   #2
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When I was working the HSA was set up through the employer with a contracted HSA provider. My former employer paid the account maintenance fees ($3/month). Contributions were made by the employer on my behalf from my earnings. During annual open enrollment, I could designate how much the contributions would be. I do not remember if I could change the contributions outside the open enrollment window. For the first few years, the employer would contribute $1,000 per year as an incentive for people to start using the HSA.

Since retiring from megacorp, I had to set up a different HSA account with the provider and pay the fees myself. I set up monthly contributions drafted from my checking account. I can make changes to the amount anytime I want and send in checks or direct deposits for one time contributions.

The provider issues a Visa card to pay medical expenses with.
They also send forms during tax season showing contributions to and distributions from the HSA account.
I suggest talking with your employer for how to open the account and set up contributions.


Hope this helps.
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Old 12-06-2012, 11:34 AM   #3
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some basics of HSAs HSA Rules | HSA - Health Savings Accounts Education

some HSA custodian considerations How to choose the best HSA Banks/credit unions often have these.

You can do lump sum contributions.....doesn't have to be the same monthly.
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Old 12-06-2012, 11:40 AM   #4
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I just make a lump sum deposit each year. If I had to do it all over again, I would have used a local bank as I have seem some pay 2% on funds, instead of sub 1% I am presently getting with a national one. Of course I am not planning on investing it in mutual funds, so that is why the higher interest rate appealed to me more.
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Old 12-06-2012, 11:42 AM   #5
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Quote:
Originally Posted by kaneohe View Post
some basics of HSAs HSA Rules | HSA - Health Savings Accounts Education

some HSA custodian considerations How to choose the best HSA Banks/credit unions often have these.

You can do lump sum contributions.....doesn't have to be the same monthly.
+1

Quote:
Originally Posted by noelm View Post
Since Nov 1, the employer changed health insurance from EPO-type to HSA-type with deductible of $4000. Reading around the web gave me a clue that I can 'open HSA account and contribute to it'. This money can be used towards my prescription drugs. Medco is charging me more than what Walmart will for 3 refills of 30-day supply so I would like to minimize these costs.

Can anyone explain me, in a bit didactic fashion, considering I am total noob (because I really am), on
- how and where do I 'open' this account?
- If the contributions to this account have to be made by me and my employer? (I have a family plan, employer pays for me and I pay for the family)
- If these contributions have to be same every month?

Thanks a ton in advance.
Here's a FAQ with more helpful links (FAQ archive) Health Savings Accounts (HSA)

An HSA account is opened like any other bank account. Anyone can deposit funds, in any amount at any time, as long as the total yearly contribution does not exceed the limits published by the US Treasury.
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Old 12-06-2012, 11:50 AM   #6
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When I retired I went with Patelco Credit Union. They charge $2 a month and basically just provide a statement of money in and money out for tax purposes. I keep all my eligible receipts, add them up in December, deposit that much, then withdraw it a short time later. I can take the amount deposited off my taxable income.

If you want to max out the HSA and accumulate a significant amount over time, then other providers have better investment options.

Do a search on this at Bogleheads for more ideas.
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Old 12-06-2012, 12:05 PM   #7
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HSA - Medical and Health Savings Account

There is a link in the middle, at the bottom of this webpage, that gives you a number of HSA account administrators and details and contact information. as well as the fees, and options for where to put money in the account ( if you hold cash in money market , it pays next to nothing. Some HSA allows you to put a portion into mutual funds.)
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Old 12-06-2012, 04:53 PM   #8
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Be sure you don't cheat yourself out of the tax benefits of the HSA contribution. If you/company contribute pre-tax, that's the benefit but if you contribute on your own post-tax , be sure you claim the "above the line" deduction on your1040.
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