I have one very specific question that I can't seem to find an answer to. And then a more general HSA question that I've been wondering about:
Background
During my last 4 years at Megacorp, we had a HDHP and contributed the family maximum to an HSA. The policy covered myself and 2 kids, who were in college at the time. DW has separate HI thru her employer. Since ER, the kids are employed and off the policy, but I still have the same HDHP for myself via Megacorp and contribute the individual max to the HSA every year. I've saved all medical receipts/invoices since originally starting the HSA, but have never taken a distribution. The balance is currently about $25K, invested in an equity index ETF. I've got $18K in past receipts and will probably accumulate another $3-5K per year, going forward.
Questions
1. Many of the early receipts I saved were for the kid's medical expenses. They are no longer on the policy and are no longer dependents on our tax return. Can I still use those old invoices to support an HSA distribution today or in the future?
2. In general, is there a conventional strategy regarding when to start taking HSA distributions? It recently occurred to me that I don't have the HSA modeled anywhere in the retirement plan, either as an offset to future medical expenses or in the withdrawal strategy. Right now, it's just a kind of off-balance-sheet "medical emergency fund." The balance is rather small today, but could grow to about $100K by age 65 if no distributions, and possibly twice that by mid 70s. I'm beginning to think I need to incorporate the HSA in the overall withdrawal strategy.
For those that have an HSA, just curious what your strategy is for drawing it down, and why? Thanks.
Background
During my last 4 years at Megacorp, we had a HDHP and contributed the family maximum to an HSA. The policy covered myself and 2 kids, who were in college at the time. DW has separate HI thru her employer. Since ER, the kids are employed and off the policy, but I still have the same HDHP for myself via Megacorp and contribute the individual max to the HSA every year. I've saved all medical receipts/invoices since originally starting the HSA, but have never taken a distribution. The balance is currently about $25K, invested in an equity index ETF. I've got $18K in past receipts and will probably accumulate another $3-5K per year, going forward.
Questions
1. Many of the early receipts I saved were for the kid's medical expenses. They are no longer on the policy and are no longer dependents on our tax return. Can I still use those old invoices to support an HSA distribution today or in the future?
2. In general, is there a conventional strategy regarding when to start taking HSA distributions? It recently occurred to me that I don't have the HSA modeled anywhere in the retirement plan, either as an offset to future medical expenses or in the withdrawal strategy. Right now, it's just a kind of off-balance-sheet "medical emergency fund." The balance is rather small today, but could grow to about $100K by age 65 if no distributions, and possibly twice that by mid 70s. I'm beginning to think I need to incorporate the HSA in the overall withdrawal strategy.
For those that have an HSA, just curious what your strategy is for drawing it down, and why? Thanks.