Would you put money into an HSA if..

[Time2]

I'm 65 MFJ, I had about $120,000 of income, mostly LTCGs.
My taxman called today and we discussed my tax form, I had a note that I wanted to Max out my HSA. He commented, you won't get any deduction for it, because you already owe zero tax. I expected and planned for that.
So, with the only advantages to adding to my HSA, tax free growth, and tax free medical payments,
Would you still fully fund an HSA?

[travelover]

I would. Tax free growth is a gift.

[KB]

You can only fund a HSA until you are eligible for Medicare. So you would need to prorate the year you turn 65.

[RobbieB]

Yup, times up for me, no more contributions. Just spend it down on co-pays and drugs.

[RunningBum]

It would give you that much more room to take 0% LTCGs or cheap Roth conversions.

[Time2]

Quote:

Originally Posted by KB You can only fund a HSA until you are eligible for Medicare. So you would need to prorate the year you turn 65.

It will matter this year, I turned 65 in March.

[Time2]

Quote:

Originally Posted by RunningBum It would give you that much more room to take 0% LTCGs or cheap Roth conversions.

If this was Dec. of last year I could do those, to late now.

[RunningBum]

So then it depends on whether your future income tax rate will be above 0%, and whether you think you can use all of the HSA on medical expenses. You probably can, because you can pay some of your Medicare premium with it. But if you can't, and you withdraw from it without medical expenses against the withdrawal, it's taxed like an IRA.

It's also a lesson to plan tax details like this before the end of the year, not after it's too late to better take advantage of them.

[mrfeh]

Quote:

Originally Posted by travelover I would. Tax free growth is a gift.

+1