|
02-09-2007, 06:25 AM
|
#1
|
Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 1,250
|
HSA?
I am reading a lot about folks having HSA's.
As a state employee, we have the option to put money into one of these. My question is: Who really needs this (ok, advice requested if you think I might need this). When I retire from the state, I will maintain my next to free health ins (BC/BS) - and am eligible for health care through the VA (prefer the VA actually!) due to my disability ratings. Also, at age 60, will be entitled to military retiree health care too (but with its own red tape issues and costs) Your 2 cents worth is welcome.
Also, please review my earlier post about my FireCalc issues and savings questions. Thanks!
__________________
Make no mistake, my friend, it takes more than money to make men rich. - A. P. Gouthey
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
02-09-2007, 09:07 AM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,003
|
Re: HSA?
JeninNJ,
Have you considered that you can use HSA savings as an additional way to put aside tax deferred money towards retirement? It can function like a traditional IRA even if you don't use the money for medical expenses.
__________________
Numbers is hard
|
|
|
02-09-2007, 09:42 AM
|
#3
|
Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 4,337
|
Re: HSA?
Quote:
Originally Posted by REWahoo!
JeninNJ,
Have you considered that you can use HSA savings as an additional way to put aside tax deferred money towards retirement? It can function like a traditional IRA even if you don't use the money for medical expenses.
|
This is the principal reason I have one. You can use it to pay current medical expenses like a FSA that won't expire but I use mine as a way to tax defer more money. When I no longer have earned income, I'm sure I'll still have medical expenses to spend it on.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
|
|
|
02-09-2007, 09:52 AM
|
#4
|
Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 1,250
|
Re: HSA?
Will I be able to pull the money out at a later date if not used for medical expenses?
__________________
Make no mistake, my friend, it takes more than money to make men rich. - A. P. Gouthey
|
|
|
02-09-2007, 10:05 AM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,003
|
Re: HSA?
Quote:
Originally Posted by JeninNJ
Will I be able to pull the money out at a later date if not used for medical expenses?
|
Yes, but you will have to pay taxes on the money if is not used for medical or other qualified expenses.
Here is a good overview of HSA's that can provide you with an understanding on how the program works: http://www.hsaadministrators.com/forms/hsa-basics.pdf
__________________
Numbers is hard
|
|
|
02-09-2007, 12:05 PM
|
#6
|
Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 1,012
|
Re: HSA?
Quote:
Originally Posted by JeninNJ
As a state employee, we have the option to put money into one of these. My question is: Who really needs this (ok, advice requested if you think I might need this). When I retire from the state, I will maintain my next to free health ins (BC/BS) - and am eligible for health care through the VA (prefer the VA actually!) due to my disability ratings. Also, at age 60, will be entitled to military retiree health care too (but with its own red tape issues and costs) Your 2 cents worth is welcome.
|
Actually, given all your insurance I don't think you qualify. To qualify, the ONLY medical insurance you can have is a high deductable insurance policy. You can't be on Medicare or someone else's non high deductable policy.
|
|
|
02-09-2007, 12:39 PM
|
#7
|
Dryer sheet aficionado
Join Date: Oct 2005
Posts: 47
|
Re: HSA?
Quote:
Originally Posted by REWahoo!
|
That's a good general overview, but it's a bit out of date due to changes recently made to the HSAs.
|
|
|
02-09-2007, 12:41 PM
|
#8
|
Thinks s/he gets paid by the post
Join Date: Jan 2004
Posts: 2,049
|
Re: HSA?
"Additional tax. There is an additional 10% tax on the part
of your distributions not used for qualified medical expenses.
[...]
Exceptions. There is no additional tax on distributions
made after the date you are disabled, reach age 65, or die."
http://www.irs.gov/pub/irs-pdf/p969.pdf
|
|
|
02-09-2007, 12:53 PM
|
#9
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,003
|
Re: HSA?
Quote:
Originally Posted by ibid
That's a good general overview, but it's a bit out of date due to changes recently made to the HSAs.
|
True. I was unable to locate a good summary of HSA ins and outs updated to include the latest changes. JeninNJ apparently could benefit from an overview, so I linked this which does cover the basics. If you have something better you can link, fire away....
__________________
Numbers is hard
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|