free4now
Thinks s/he gets paid by the post
- Joined
- Dec 28, 2005
- Messages
- 1,228
There seem to be two different approaches people take to HSA accounts:
1. Whenever you incur a medical expense, pay it out of the HSA account.
2. Avoid any distributions from the HSA account, so it grows tax free as long as possible.
So far I've been taking approach #1, mostly because I am not comfortable locking up a large amount of my wealth in an account where congress could add restrictions on what I can use it for, and where it definitely can't be used for daily living expenses.
But I'm considering taking the second approach, and I wanted to hear from those that are going that way.
If you're one who contributes to an HSA but pay medical expenses out of pocket rather than through HSA distributions, I'd like to hear your thinking... when are you planning on taking distributions? How are you planning on taking the distributions (by paying medical expenses or otherwise)?
1. Whenever you incur a medical expense, pay it out of the HSA account.
2. Avoid any distributions from the HSA account, so it grows tax free as long as possible.
So far I've been taking approach #1, mostly because I am not comfortable locking up a large amount of my wealth in an account where congress could add restrictions on what I can use it for, and where it definitely can't be used for daily living expenses.
But I'm considering taking the second approach, and I wanted to hear from those that are going that way.
If you're one who contributes to an HSA but pay medical expenses out of pocket rather than through HSA distributions, I'd like to hear your thinking... when are you planning on taking distributions? How are you planning on taking the distributions (by paying medical expenses or otherwise)?
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