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Old 11-24-2016, 08:15 AM
 
Location: Mount Airy, Maryland
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Interesting thread seeing as I signed up yesterday for an HSA for the first time, replacing my FSA. However we were told there is no growth, what you put in is what you have available years down the road.
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Old 11-24-2016, 08:27 AM
 
Location: Southern California
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Quote:
Originally Posted by DaveinMtAiry View Post
Interesting thread seeing as I signed up yesterday for an HSA for the first time, replacing my FSA. However we were told there is no growth, what you put in is what you have available years down the road.
I suppose it depends on where you open an account and whether your account allows you to put money into the market or whether it's simply a savings account paying little interest and using up any interest income in fees.

I have 2 HSAs, and each provides different investment choices in addition to holding cash.
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Old 11-24-2016, 08:28 AM
 
Location: Mount Airy, Maryland
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Quote:
Originally Posted by Goin' Coastal View Post
I suppose it depends on where you open an account and whether your account allows you to put money into the market or whether it's simply a savings account paying little interest and using up any interest income in fees.

I have 2 HSAs, and each provides different investment choices in addition to holding cash.
After accumulation am I free to move my HSA to a personal account tied to the market if I retain my job?
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Old 11-24-2016, 08:29 AM
 
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Quote:
and my only regret is not maxing it out from day one and paying all medical expenses out of pocket instead. I treated it like an FSA and used it.
Interesting. I've had it for the last couple of years and my work also puts in $1,200. I used it up last year since I had $5K out of pocket for a knee replacement. I've not used it much this year and will try to pay everything out of pocket going forward and keep adding to the HSA.
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Old 11-24-2016, 08:36 AM
 
Location: Albuquerque NM
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Quote:
Originally Posted by BellaDL View Post
golfingduo,

I stand corrected regarding earned income requirement for HSA

You Don’t Need Earnings to Contribute to a Health Savings Account

You Don

You may also be correct with regards to the health insurance not having to be an employer sponsored plan.
I've had an HSA for the last 3 years but will be retiring in 2017 at age 62. My plan is to continue the HSA until the maximum age possible, age 65, using money from my 401k to fund it. In effect I will be converting some 401K funds to a "Roth" but avoid paying taxes on that 401k withdrawal.

I've also read that order of saving should be matched on 401k, HSA, Roth, then unmatched part of 401k.
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Old 11-24-2016, 08:53 AM
 
Location: Southern California
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Originally Posted by ABQ2015 View Post
I've had an HSA for the last 3 years but will be retiring in 2017 at age 62. My plan is to continue the HSA until the maximum age possible, age 65, using money from my 401k to fund it. In effect I will be converting some 401K funds to a "Roth" but avoid paying taxes on that 401k withdrawal.

I've also read that order of saving should be matched on 401k, HSA, Roth, then unmatched part of 401k.
That is an interesting strategy. It has been my understanding that we can only move funds one time each, tax free, from an IRA to fund an HSA. We haven't done that so far; we just put in money from our regular savings account or other source and then get to decrease federally taxable income.
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Old 11-24-2016, 09:05 AM
 
Location: Southern California
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Quote:
Originally Posted by DaveinMtAiry View Post
After accumulation am I free to move my HSA to a personal account tied to the market if I retain my job?
I don't know how your plan works. My HSAs have not been tied to an employer or employer's insurance plan.

If your employer contributes to the HSA, you may not be able to do anything until you no longer work there.

I opened my first HSA with the HSA folks whose flyers came with my 2011 insurance provider. I no longer have that insurance provider, but I still have that HSA. I like it and find it easy to use, so I use it for small co-pays, which come out of the portion required to be kept in cash.

However, a couple of years later, I opened another HSA with another institution because I wanted to take advantage of some different investment choices. My husband also has his HSA with this 2nd HSA place. I find it clunkier to use, so this one is invested for the longer term.

I should probably roll all HSA funds into one account or the other but just haven't yet because I like the flexibility.
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Old 11-24-2016, 09:38 AM
 
Location: Albuquerque NM
1,663 posts, read 1,532,675 times
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Quote:
Originally Posted by Goin' Coastal View Post
That is an interesting strategy. It has been my understanding that we can only move funds one time each, tax free, from an IRA to fund an HSA. We haven't done that so far; we just put in money from our regular savings account or other source and then get to decrease federally taxable income.
You are not directly transferring the 401k money to the HSA. Say I decide to withdraw $25K a year from my 401k for retirement income. That goes on the 1040 form as income (but not earned income) and then I contribute $5000 of that into an HSA. The HSA amount goes on the 1040 form as a subtraction. So only $20K of the 401k shows up in the Adjusted Gross Income (AGI) amount at the bottom of the first page of the 1040 form and is subject to taxes.

The $5K is now in the HSA and can be invested similar to a Roth with no taxes on growth or proceeds. To answer another poster, I thought all HSAs allowed the money to be invested once you have a certain amount in the HSA. My HSA requires that you keep $1K in the money market portion of the HSA and any additional funds can be transferred to their list of mutual funds.
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Old 11-24-2016, 12:33 PM
 
Location: Central Massachusetts
4,800 posts, read 4,860,228 times
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Quote:
Originally Posted by DaveinMtAiry View Post
After accumulation am I free to move my HSA to a personal account tied to the market if I retain my job?
It follows you. It is not tied to the employer as far as I can read.
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Old 11-24-2016, 11:05 PM
 
Location: RVA
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The HSA funds would always have to be kept separate, as an HSA account. The withdrawals are tracked and you get an IRS statement on its use each year. It can not be co-mingled in to a personal account.
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