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View Poll Results: Best way to manage HSA funds?
Maximize HSA contributions; do not touch the funds until age 65; pay medical expenses out-of-pocket 19 61.29%
Maximize HSA contributions; occasionally use distributions to pay significant medical expenses 5 16.13%
Maximize HSA contributions; always use distributions to pay all medical expenses 4 12.90%
Minimal HSA contributions; only fund the HSA to cover qualified medical expenses 1 3.23%
No HSA contribution until 401(k) and Roth IRA are maxed out; pay medical expenses out-of-pocket 2 6.45%
Voters: 31. You may not vote on this poll

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Old 03-16-2009, 02:59 PM   #21
Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 1,012
Originally Posted by TromboneAl View Post
Well, I want to reimburse myself at some point, because if I just take it out after age 65, I have to pay tax on it.

If I reimburse myself right away, I lose 10 or more years of tax-free compounding. If I were in the 20% tax bracket, it could mean getting 10% annual return on my money instead of 8%.
reimburse as late as possible, when u want to be taking the money out to supplement ur retirement. if u keep all ur reciepts since u got ur HSA/HD health insurance u can reimburse all of them, at any time (at least that is my understanding)
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Old 03-17-2009, 03:00 PM   #22
Recycles dryer sheets
Join Date: Jun 2008
Posts: 94
I chose 3. I'm maxing my 401k, not eligible for a Roth because we make too much (that still gets under my skin, I am not rich ... ) and going to put in as much as I can afford into the HSA. I wont say I'm not going to touch it, but I'm going to try and keep my hands off of it.

I dont think I fully understand the concept behind paying out of pocket then reimbursing at a later time. To gain the interest? I was unaware that money could be invested in Vanguard funds. I'll have to check into that.
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Old 03-17-2009, 05:29 PM   #23
Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 4,172
Originally Posted by RDamien View Post
I dont think I fully understand the concept behind paying out of pocket then reimbursing at a later time. To gain the interest?
The HSA is a rare beast where (in effect) you get a deduction for the contribution going in, tax-free growth, and then tax-free distributions (for qualified medical expenses) coming out. Other things like TIRAs have only the first 2 and Roth IRAs have only the last 2. It is to your advantage to feed the HSA as much as possible and keep it going as long as you can.....of course you want to use it for medical expenses before you leave this world else you forfeit some of the advantages.
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health insurance, hsa, savings

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