TromboneAl said:
The $2.25 bank account fee is waived when the balance is over $3,000 so one could wait until Jan 2, and make the initial 2005, and the 2006 contributions on that day to put the balance over $3,000 immediately (if I understand things correctly).
That's exactly what I did, Al. I subsequently invested my $5,250 (remember, 2005 increased the HSA contribution limit due to inflation to $2,650/year for an individual policy) among IGR (200 shares, REIT fund, yielding 8.35%) and CEI preferred class A (100 shares, yielding 7.92%). Even though I'm getting socked for both the brokerage monthly fee and a low-balance fee, the interest that my funds are earning more than offsets the fee. Sure, it cuts down the return, but it's better than putting $3,000 in the account earning measly savings accounts rates to avoid the $1.25/month fee.
If you can, don't even think about touching the HSA assets. Let those babies multiply over the years and just fund your minor health care expenses out of your pocket change. Of course, if you do encounter a significant medical expense, it may make sense to cash in your HSA...but my plan is it let it ride for as long as possible, and let it become yet another retirement savings vehicle (among my annuities and SEP/ROTH IRAs).
Now that I look at it, Al, I have a question - isn't the HSA policy only defined as ANY policy that has a deductible higher than $1,000, and lower than $10,000? If so, wouldn't ANY of the policies you listed qualify under the gov'ts definitions? (I can't remember if the gov't has any fine print on high-deductible policies). Remember - just because an insurance company doesn't call it an "HSA Policy" may not necessarily mean the gov't wouldn't let it qualify...it might pay to double check the technical definitions.
Also, don't forget that it's $2,600 for an individual policy, and $5,000 for a family (more than 1 person) policy, so if your deductibles are higher than $2,500, you might be able to up that contribution.
--Peter