More Questions From A HSA Newbie

[ownyourfuture]

This will be my 1st 'full' year of having a ACA based HDHC policy.
Since this policy officially started on December 1, 2016, I was eligible to contribute to a HSA for 2016.
I put in $3,300.00

My Policy:
$273.00 Per Month, $6,300.00 Deductible, & zero coverage for dental/vision.
I'm 55, & I'm not on any prescriptions.

I have the first of my 2 annual teeth cleaning's later this month.
The cost per cleaning is approximately $140.00

Question #1A: If I chose to, could I pay for this with HSA funds ?

Question #1B: Hypothetically, if I have $5,000.00 of medical/dental/vision expenses in 2017, & choose to pay all of it ‘out of pocket’ allowing my HSA funds to grow tax-free, would I be violating any tax laws ?

If not, would I have to enter any of this when I do my 2017 taxes ?

 

[rodi]

1A - yes - qualified expenses (including dental) can be paid with HSA funds. Keep receipts and records, though.

1B - yes - you can pay out of pocket and keep your HSA funds growing. You can even pay out of pocket (saving receipts) and reimburse yourself in the future (years in the future) based on the receipts you saved.

 

[audreyh1]

Question #1B: Hypothetically, if I have $5,000.00 of medical/dental/vision expenses in 2017, & choose to pay all of it ‘out of pocket’ allowing my HSA funds to grow tax-free, would I be violating any tax laws ?

Not at all. In fact many of us are doing precisely this - letting the fund grow for future health expenses.

We keep records of medical expenses "just in case", but our plan is to use our HSA funds to pay Medicare part B and D premiums when we become Medicare eligible. In the meantime, hopefully, the funds will grow faster than medical inflation.

Also, once you reach 65, HSA funds may be withdrawn for any reason. If not used for medical expense reimbursement, then it's taxed like an IRA withdrawal.

 

[frank]

Is it true that hsa funds can be used for premiums for part b and part d? I didn't know that premiums were an option? and if they can are they still taxed or tax free because of the health insurance?

 

[MichaelB]

Is it true that hsa funds can be used for premiums for part b and part d? I didn't know that premiums were an option? and if they can are they still taxed or tax free because of the health insurance?

Medicare B and D premiums are eligible expenses for HSA reimbursement.