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12-06-2012, 09:40 AM
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#1
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Recycles dryer sheets
Join Date: Aug 2009
Posts: 141
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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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12-06-2012, 10:01 AM
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#2
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Thinks s/he gets paid by the post
Join Date: May 2011
Location: South Eastern USA
Posts: 1,068
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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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12-06-2012, 10:40 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
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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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12-06-2012, 10:42 AM
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#5
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,725
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Quote:
Originally Posted by kaneohe
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+1
Quote:
Originally Posted by noelm
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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Here's a FAQ with more helpful links http://www.early-retirement.org/foru...hsa-30762.html
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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12-06-2012, 10:50 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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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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12-06-2012, 11:05 AM
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#7
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Full time employment: Posting here.
Join Date: Dec 2010
Posts: 576
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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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12-06-2012, 03:53 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 4,172
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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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