Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 10-26-2013, 08:59 PM   #21
Recycles dryer sheets
 
Join Date: Oct 2013
Location: SF Bay Area
Posts: 85
Quote:
Originally Posted by Accidental Retiree View Post
There are several threads here on this topic, but I just googled this:

Qualifying for a Health Savings Account - washingtonpost.com


"You don't need income from a job to take advantage of the tax deduction. "They can deduct their contributions from any type of taxable income, such as earnings from investments, even if it is not earned income," says Roy Ramthun, president of HSA Consulting Services in Washington, D.C."


You don't need earned income to make use of HSA. But I think what the OP meant was that with just the investment income he will qualify for subsidy; and with a subsidy a silver level plan is a much better option than "starving" yourself in a barebones HSA plan just to get the deduction.

And then again, I may be reading too much into his intentions.

But the above line of thinking certainly applies to me and that is the decision I came to. I know for sure HSA deduction is allowed without earned income as I have taken it in the past years with my CPA's blessing.
__________________

__________________
47 is offline   Reply With Quote
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!

Old 10-27-2013, 12:56 AM   #22
Recycles dryer sheets
NoMoreJob's Avatar
 
Join Date: Feb 2012
Posts: 169
Quote:
Originally Posted by 47Percent View Post
You don't need earned income to make use of HSA. But I think what the OP meant was that with just the investment income he will qualify for subsidy; and with a subsidy a silver level plan is a much better option than "starving" yourself in a barebones HSA plan just to get the deduction........
Just for others' benefit, not all HSA plans are "barebones." We have a good silver leve HSA option in our state which can become really good if you're eligible for cost sharing. In addition, your HSA contribution is a deduction from income for ACA purposes so may help qualify you for the cost sharing.
__________________

__________________
NoMoreJob is offline   Reply With Quote
Old 10-27-2013, 05:49 AM   #23
Full time employment: Posting here.
 
Join Date: Jan 2010
Location: dubuque
Posts: 618
when they say 6350 single for out of pocket maximum on these health insurance plans, does the 6350 include,, prescriptions, copays, premiums? if not and you are paying hypothetically 400 per month. at the end of the year your actual out of pocket will be 4800 plus 6350. is that right?
__________________
frank is online now   Reply With Quote
Old 10-27-2013, 09:19 AM   #24
Recycles dryer sheets
 
Join Date: Oct 2013
Location: SF Bay Area
Posts: 85
Quote:
Originally Posted by frank View Post
when they say 6350 single for out of pocket maximum on these health insurance plans, does the 6350 include,, prescriptions, copays, premiums? if not and you are paying hypothetically 400 per month. at the end of the year your actual out of pocket will be 4800 plus 6350. is that right?


Preimums are NEVER included in the out of pocket maximums. It also does not include copays (as far as I know) if the copay is given as a fixed dollar amount and not as a percentage of the actual bill.

For prescriptions -- pre-ACA, if your plan "covered" that prescription, then your share of the payment will be added to the oop calculation, and otherwise not. But as ACA includes prescription coverage, yes your share will count towards oop.
__________________
47 is offline   Reply With Quote
Old 10-27-2013, 10:46 AM   #25
Recycles dryer sheets
NoMoreJob's Avatar
 
Join Date: Feb 2012
Posts: 169
Quote:
Originally Posted by 47Percent View Post
Preimums are NEVER included in the out of pocket maximums. It also does not include copays (as far as I know) if the copay is given as a fixed dollar amount and not as a percentage of the actual bill.
Typically all copays, deductibles and co-insurance do apply toward the out-of-pocket maximum, but you should always read the plan summary which should spell these things out.
__________________
NoMoreJob is offline   Reply With Quote
Old 10-27-2013, 11:40 AM   #26
Thinks s/he gets paid by the post
zinger1457's Avatar
 
Join Date: Jul 2007
Posts: 1,454
Quote:
Originally Posted by frank View Post
when they say 6350 single for out of pocket maximum on these health insurance plans, does the 6350 include,, prescriptions, copays, premiums? if not and you are paying hypothetically 400 per month. at the end of the year your actual out of pocket will be 4800 plus 6350. is that right?
That would be a very worse case situation. People usually choose a HD/HSA plan because they are generally in good health and don't expect to have to pay any or most of the deductible. I've had a HSA plan for the last 5 years and doubt my total out of pocket medical expenses are more than $200.
__________________
zinger1457 is offline   Reply With Quote
Old 10-28-2013, 06:59 AM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 7,384
Quote:
Originally Posted by zinger1457 View Post

That would be a very worse case situation. People usually choose a HD/HSA plan because they are generally in good health and don't expect to have to pay any or most of the deductible. I've had a HSA plan for the last 5 years and doubt my total out of pocket medical expenses are more than $200.
Since I will receive no subsidies, my strategy for keeping the Affordable Care Act affordable are two pronged: maintaining the HSA and and not needing medical services. If the second part ever falters it won't be very affordable to me.
__________________
Mulligan is offline   Reply With Quote
Old 10-28-2013, 12:12 PM   #28
Thinks s/he gets paid by the post
Katsmeow's Avatar
 
Join Date: Jul 2009
Posts: 3,399
Quote:
Originally Posted by zinger1457 View Post
That would be a very worse case situation. People usually choose a HD/HSA plan because they are generally in good health and don't expect to have to pay any or most of the deductible. I've had a HSA plan for the last 5 years and doubt my total out of pocket medical expenses are more than $200.
When DH retired we could stay with the PPO we were on or could move to the HD/HSA plan. In our case, we expect to hit the in net work out of pocket max each year (this is mostly for some medications for our kids). THe premiums for the PPO were sufficiently higher than even the lower deductible couldn't make up the difference. So we did the HD/HSA. We just to the rates for 2014 and the PPO costs $18k a year more in premiums than the HD/HSA. There is no possible way that it could ever make economic sense for us to do the PPO. The difference in deductibe between the HSA and PPO family deductible is $2k.
__________________
Katsmeow is offline   Reply With Quote
Old 10-31-2013, 05:30 PM   #29
Recycles dryer sheets
bamsphd's Avatar
 
Join Date: Nov 2005
Posts: 337
Quote:
Originally Posted by zinger1457 View Post
People usually choose a HD/HSA plan because they are generally in good health and don't expect to have to pay any or most of the deductible.
The other extreme, people who are certain they will hit the out-of-pocket max regardless of which plan they pick also usually choose a HD/HSA plan.

As I analyze the plan's on my state's exchange, my spreadsheet's "Worst case out-of-pocket max + premium" column favors one of the HSA plans.
__________________
bamsphd is offline   Reply With Quote
Old 10-31-2013, 05:43 PM   #30
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,517
Quote:
Originally Posted by Katsmeow View Post
When DH retired we could stay with the PPO we were on or could move to the HD/HSA plan. In our case, we expect to hit the in net work out of pocket max each year (this is mostly for some medications for our kids). THe premiums for the PPO were sufficiently higher than even the lower deductible couldn't make up the difference. So we did the HD/HSA. We just to the rates for 2014 and the PPO costs $18k a year more in premiums than the HD/HSA. There is no possible way that it could ever make economic sense for us to do the PPO. The difference in deductibe between the HSA and PPO family deductible is $2k.
Wow - the PPOs I'm seeing don't cost that much.

I'm not sure I see an HD/HSA option. I'm seeing some EPO plans that are a little cheaper, but there is absolutely no out-of-network coverage.
__________________

__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 07:56 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.