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Old 05-16-2011, 07:28 PM   #1
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HSA

I went to my credit union today to set up a couple of HSA's for DH and I so we could both get the catch-up contribution for 55 year olds. We were told we could only have one catch-up distribution because our insurance is set up for a family not individuals. Anyone else ever heard of that?

I am going to go to the IRS site and see if I can find anything on it but I thought maybe someone on the board might know the rules or have some insight.

Thanks!
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Old 05-16-2011, 08:23 PM   #2
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Yes, I've heard of that. I got cought in that last year. I misinterpreted that each of us could do a $1,000 catchup contribution but when I filed my return I discovered that the $1,000 catchup contribution was for the both of us combined, not each of us. So I had to do some takebacks to straighten it out.
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Old 05-17-2011, 07:46 AM   #3
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I haven't paid any attention to HSAs because I didn't have one available when I worked. But you talk about "setting a couple up" at the credit union. Are these things available to anyone who wants one now? Tax deductible?
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Old 05-17-2011, 08:42 AM   #4
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Good Q&A on HSA's here: http://www.hsaed.com/who_can_have_an_hsa_
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Old 05-17-2011, 09:06 AM   #5
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Thanks bizlady - not qualified as I thought.
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Old 07-14-2011, 04:24 PM   #6
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Hi I am qualified I have a family plan with a $5000 deductible can I start a Hsa account and let it build for retirement while paying for bills out of my business So I have the money in retirement.
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Old 07-15-2011, 05:39 PM   #7
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Hi I am qualified I have a family plan with a $5000 deductible can I start a Hsa account and let it build for retirement while paying for bills out of my business So I have the money in retirement.
Anyone just trying to see if this works
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Old 07-15-2011, 09:03 PM   #8
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Quote:
Originally Posted by Snowx800
Hi I am qualified I have a family plan with a $5000 deductible can I start a Hsa account and let it build for retirement while paying for bills out of my business So I have the money in retirement.
Usually DGoldenz catches these, so maybe he will shortly. The few things I know based on my HSA, and limited knowledge is this: 1) Does your plan state that it is a HSA qualified high deductible health plan (HDHP)? If so you can then set up an HSA account through one of their recommendations or go out on your own. 2) Assuming it is ---- yes you can pay for your eligible health care expenses out of pocket, and continue to let your HSA grow.You also can change your mind 2 or 3 years down the road and pay for expenses out of HSA (keep your receipts!) 3) Money will grow tax free and you can withdraw after 65 for any reason, subject to your then income tax rate 4) Or you can do what I'm hoping to do and use it tax free to pay Medicare premiums and any other health expenses after 65 5) if eligible you can sock away up to around $6100 a year in an HSA family which will come off the top of your income, making a nice yearly tax deduction. 6) Stay healthy and it will build up nicely! Hope any of this helps
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Old 07-15-2011, 09:09 PM   #9
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Yes it does that's what I wanted to do let it build and use it for health cost in retirement years thanks
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Old 07-15-2011, 09:18 PM   #10
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I have a qualified insurance plan that allows for a HSA. I haven't set one up yet-started in January 2011. Since I have no income to speak of -the tax shelter doesn't seem that great.
I will be spending more each year then I can shelter. I could do the shelter into the HSA and leave it, pay my premiums and $5K deductible out of pocket. That is possible to get some advantage I guess.
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Old 07-15-2011, 09:46 PM   #11
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Quote:
Originally Posted by lemming
I have a qualified insurance plan that allows for a HSA. I haven't set one up yet-started in January 2011. Since I have no income to speak of -the tax shelter doesn't seem that great.
I will be spending more each year then I can shelter. I could do the shelter into the HSA and leave it, pay my premiums and $5K deductible out of pocket. That is possible to get some advantage I guess.
Remember it doesn't have to be earned income to benefit from tax deduction. The HSA is one of few options I have to shelter income tax from my pension income.
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Old 07-16-2011, 08:13 AM   #12
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Quote:
Originally Posted by lemming View Post
I have a qualified insurance plan that allows for a HSA. I haven't set one up yet-started in January 2011. Since I have no income to speak of -the tax shelter doesn't seem that great.
I will be spending more each year then I can shelter. I could do the shelter into the HSA and leave it, pay my premiums and $5K deductible out of pocket. That is possible to get some advantage I guess.
That is what I am doing with my HSA from work. While the premiums come out of my paycheck, I make contributions to my HSA and my employer also does. I let those funds sit tax deferred and then pay the out-of-pockets from my taxable accounts.

Bottom line, the way I do it the HSA effectively increases the amount I can put away that is tax deferred each year - like increasing my maximum contribution to retirement savings by the maximum contribution to the HSA.
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