HSA question

[ripper1]

This may have been covered here but do hsa withdrawals have to pay directly for qualified health expenses. I am using a fidelity visa hsa debit card. But I also have some expenses paid with a credit card. Is it I can add up all these expenses and be able to count them toward hsa withdrawals?

 

[audreyh1]

Yes, you can simply reimburse yourself later from the HSA for any qualified medical expense you paid after the account was opened. (Well actually after your first HSA account was opened if you have multiple or did a transfer).

You need to keep the documentation showing how you paid for those expenses.

 

[Rianne]

My HSA gives me options to have the money automatically deposited in my checking account (I paid with a CC) or I can use the debit card they sent (I never use). I want the points from CC. All count as HSA expenses.

 

[ripper1]

Great. Also I believe my wife's part B medicare premium is a qualifier but not medigap premiums.

 

[RunningBum]

If you look at some of the other HSA threads you'll see that quite a few of us don't reimburse ourselves for years. This lets the HSA account grow tax-free. You just have to keep the documentation over those years to match up the withdrawals with past eligible expenses.

 

[ripper1]

If you look at some of the other HSA threads you'll see that quite a few of us don't reimburse ourselves for years. This lets the HSA account grow tax-free. You just have to keep the documentation over those years to match up the withdrawals with past eligible expenses.

Fantastic

 

[audreyh1]

Great. Also I believe my wife's part B medicare premium is a qualifier but not medigap premiums.

Yes, part B and part D.

 

[easysurfer]

I don't even have a HSA debit card. Instead I just pay with regular credit card or check and keep good records.

 

[Time2]

Fantastic

I'm up to $52k in my HSA!
From what I just read, I can pay my Part B and D premiums, I'm just now signing up. So I can take out about $4,000 tax free to pay that if I decide to,
plus more if I pay for my meds with HSA money.
It's looking good!

 

[blueskyk]

Great. Also I believe my wife's part B medicare premium is a qualifier but not medigap premiums.

Do each of you have your own HSA account? I think my DH and I have, perhaps, wandered over into doing this incorrectly. We make the max contribution for the two of us combined into a single HSA and then claim expenses for either of us from this one account.

The more I read, the more I think this might be a boo-boo.

 

[REWahoo]

Do each of you have your own HSA account? I think my DH and I have, perhaps, wandered over into doing this incorrectly. We make the max contribution for the two of us combined into a single HSA and then claim expenses for either of us from this one account.

The more I read, the more I think this might be a boo-boo.

I agree, it is a boo-boo:

In the case of married individuals, each spouse who is an eligible individual who wants to have an HSA must open a separate HSA. Married couples cannot have a joint HSA, even if they are covered by the same HDHP; however, distributions can be used to cover the qualified expenses of the other spouse.

https://apps.irs.gov/app/vita/content/37/37_04_005.jsp?level=basic

 

[gwraigty]

Do each of you have your own HSA account? I think my DH and I have, perhaps, wandered over into doing this incorrectly. We make the max contribution for the two of us combined into a single HSA and then claim expenses for either of us from this one account.

The more I read, the more I think this might be a boo-boo.

The HSA account owner is allowed to reimburse for expenses for themselves and eligible dependents. See page 3 of this IRA publication:

Medical and Dental Expenses

ETA after reading post #11 - of course there's no such thing as a joint HSA. Since HSA contributions are limited by a family maximum ($7100 for 2020, plus $1000 catch up if applicable), it's not possible to legitimately contribute more than that to a single HSA.

In our case, DH has the employer HDHP, so the family maximum plus his catch up contribution goes into "his" HSA. My catch up contribution goes into "my" HSA. All health care expenses for both of us are legitimately reimbursed through "his" HSA, since I'm also covered under the HDHP. The same was true for our kids, before they no longer qualified for dependent status recently, even though they're still covered under the HDHP.

 

[Time2]

Do each of you have your own HSA account? I think my DH and I have, perhaps, wandered over into doing this incorrectly. We make the max contribution for the two of us combined into a single HSA and then claim expenses for either of us from this one account.

The more I read, the more I think this might be a boo-boo.

We just have one account.

 

[audreyh1]

Do each of you have your own HSA account? I think my DH and I have, perhaps, wandered over into doing this incorrectly. We make the max contribution for the two of us combined into a single HSA and then claim expenses for either of us from this one account.

The more I read, the more I think this might be a boo-boo.

Yes, we each have our own HSA account and thus file two forms at tax time, and each of us uses the individual limit, plus catchup contribution.

If you are 55 or older, you would be limited to one catchup contribution per account.

Claiming expenses from either account is fine. You can pay spouse's qualified medical expenses, no problem.

Having one account is OK for a family insurance, but you are limited to one catch-up contribution and you are limited by the family contribution limit, not the individual limit. They aren't quite the same.

 

[audreyh1]

We just have one account.

You want a second account so that the spouse can make their own catch-up contribution. Otherwise you are limiting what you can set aside and deduct at tax time.

 

[Time2]

You want a second account so that the spouse can make their own catch-up contribution. Otherwise you are limiting what you can set aside and deduct at tax time.

To late! We are already retired, no work income.
One more thing to add to, 'I didn't do all my retirement planning perfect' list.
But, I try to convince newcomers, your investment planning will not be perfect, you can't do perfect, just do well enough and you can retire. I did well enough.

 

[MichaelB]

To late! We are already retired, no work income.
One more thing to add to, 'I didn't do all my retirement planning perfect' list.
But, I try to convince newcomers, your investment planning will not be perfect, you can't do perfect, just do well enough and you can retire. I did well enough.

If you are under age 65 and have investment income, it’s not too late. HSA is an above the line adjustment to income - any type of income.

 

[audreyh1]

To late! We are already retired, no work income.
One more thing to add to, 'I didn't do all my retirement planning perfect' list.
But, I try to convince newcomers, your investment planning will not be perfect, you can't do perfect, just do well enough and you can retire. I did well enough.

You don't have to have work income to contribute to an HSA account.

All that is required is to have HSA-eligible health insurance. That's it.

As retirees we've opted for HSA eligible health insurance each year and made HSA contributions each year, and will each continue to do so until 65 years old.

 

[JoeWras]

You don't have to have work income to contribute to an HSA account.

All that is required is to have HSA-eligible health insurance. That's it.

As retirees we've opted for HSA eligible health insurance each year and made HSA contributions each year, and will each continue to do so until 65 years old.

Had to switch to DW's insurance at retirement, and they don't have HSA plans, so mine is now not being funded.

I have to admit only having co-pays is nice. But... I sure do miss contributing to my little tax free slush fund.

BTW, in my last year at w*rk, I didn't work a full 12 months. I made sure to contribute to the absolute max available on a pro-rata basis. My contributions at w*rk were just short (by design) and I topped off with a final manual payment.

 

[mn54]

To late! We are already retired, no work income.
One more thing to add to, 'I didn't do all my retirement planning perfect' list.
But, I try to convince newcomers, your investment planning will not be perfect, you can't do perfect, just do well enough and you can retire. I did well enough.

you might be confusing roth ira contributions with HSA contributions. you need earned income for roth, investment income for HSA with eligible insurance.

 

[audreyh1]

You can contribute to an HSA from savings, as long as you currently have HSA eligible health insurance, not income required at all.

 

[Time2]

You don't have to have work income to contribute to an HSA account.

All that is required is to have HSA-eligible health insurance. That's it.

As retirees we've opted for HSA eligible health insurance each year and made HSA contributions each year, and will each continue to do so until 65 years old.

Oh, great, I can still make a 2019 contribution up until April 2020!
And a 2020 contribution also, earned income is not a requirement!
Oh, nope not for 2020, I'll be moving to Medicare and dropping my HDHP.


Now can I contribute if I only had two months with an HDHP in 2020?


That's why I love these groups, I learn new things.

 

[audreyh1]

Yes, for those months you are on an HSA eligible insurance plan. HDHP is not sufficient - you need to make sure it meets all the HSA requirements. Check with your insurer.

 

[pb4uski]

It has to be more than a HDHP... it has to be a HSA-eligible HDHP... not all HDHPs are HSA-eligible... in fact, it seems that more are NOT HSA-eligible than are.

However, if it is a HSA eligible HDHP then you could do 2/12s in 2020.... they prorate it by month where you don't have a HSA-eligible plan for the entire year.

 

[nvestysly]

DW and I have a family medical insurance policy. It is HDHP, HSA eligible and has quite a high deductible. Even if the deductible were considered to be divided by two the dollar value would be high enough to meet the HDHP / HSA threshold.

However, it's a family policy. So the deductible includes both of us. Regardless of who incurs the medical expense whether it be a "procedure," an office visit, etc. it goes against the family deductible. This is a pre-ACA policy that we pay for and deduct our premium on our taxes every year.

I think we are only allowed to have a family HSA. Is that correct?