*Bonus Hack #5!* - To help document the receipts over the course of your life, take a picture, and email it to yourself with the Subject line: Healthcare Expense + The Year it occurred. You can also set up a specific email account for these receipts. Something like "FamilyNameHSA@Gmail..." 🙂
Just be careful of the purge! Google started purging old photos and emails from user accounts last year. It would be awful to think you have everything saved like that, only to find 20-30 years later that it is just gone because you were over a data cap and missed the notification a decade ago! Of course, storing receipts with your HSA provider can be a crab trap when you change providers or employers too, so that isn't necessarily a good idea either. But If you roll an old HSA over to a private acct that you are sure isn't going to go anywhere, then that could stand a better chance at lasting a good long while. At the end of the day though... paper copies are a pain, but not a terrible thing. I have also gotten in the habit of requesting yearly expense reports from our health care providers, that way we have a single print-out for the year of itemized expenses to work with. Takes a lot less space than storing each bill every time you use a service. We have a family of ADHD, so having all of our counseling and med mgmt visits as separate receipts builds up a lot of paper rather quickly! Getting it as a single summary for each of us every year really makes it easier to store, and easier to look at.
@@bk-xn5tk not sure; might be on the honor system with a potential to be audited, but it makes sense that they would ask for receipts because if you simply take the money out, you DO pay taxes on it all those years later (age 65) because it essentially turns into a tax-deferred IRA. I’m going to keep the receipts, along with lists of qualified expenses (in case those ever change and something formerly allowed no longer is allowed) because I would really be bummed if I did have expenses which I paid out of pocket at the time they occurred and now had to pay taxes on my withdrawal just because I was too lazy or too disorganized to keep receipts. Remember: the government wants their taxes. This understanding alone makes me think yes, they aren’t going to let us slide without receipts.
Great content. I had an HSA account as soon as it was offered by my employer for the last 14 years of my career. I maxed the contributions and only took out one reimbursement for an emergency surgery. I kept $3000 in cash to avoid annual account fees and invested the rest. Since I retired 2 years ago, I have been reimbursing my historical pre retirement medical expenses, as well as current expenses and the account balance is large enough that it still earns more than my withdrawals. It almost feels like my wife and I have free retirement medical because all of our current medical bills are being paid from this account and not from my taxable IRA withdrawals.
@paul-GrnHil, I'm wondering what company you used. Since most companies these days charge an account fee no matter what ($300 annually). OOPS, nvmd, I just remembered mine is a Self-Directed account. Invest in almost any asset, not just stock funds.
My company used HSA Bank. Now that I'm retired, I moved my HSA to Fidelity. It has no fees. I keep 1 year of expected expenses in cash and the rest is invested in a Large Cap Growth fund.@@MissTReviews
I have invested my contributions in my HSA account and have never spent out of it. I currently have 100k balance and will soon switch to dividend stocks to generate enough to cover all medical expenses without touching my principal amount.
at 100k you can probably withdraw your deductible amount each year and still make the money back in investment growth. No real reason so switch to dividends.
The breakdown of Medicare timelines and HSA contributions is super helpful. It's one of those things you might not think about until it's too late. I faced a lot of issues during that transition
It's an important thing to consider! We go over timelines in this one a bit more as well: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-xKuXEojvdmA.html
Investing your HSA money and letting it grow over time seems like a smart move. Pls what types of funds did you choose, and what kind of returns have you seen?
@@MichaelKeaton-np4fl by consistently maxing out HSA contributions since 2005, the account reached close to $2 million by age 65. Recently reimbursed $100k of documented medical expenses taxfree. Employing a fund manager since 2010, and opted for a stock focused portfolio over ETFs and mutual funds, aimed for a more analytical and less leveraged approach. That strategy combined with contributions, proved solid. I appreciate the caution about using HSA dollars for non-qualified medical expenses. The penalties can be steep. accidentally faced these penalties, i wonder if anyone faced a similar experience?
@@ConstanceMills-tw5zi One year, all pumped up to make the most of my HSA I went a bit overboard with contributions, totally unintentional, fast forward to tax season, and bam faced some extra taxes
@@JewishGawk and we both have learnt our lessons now, haven't we? my fund manager helps me avoid tax pitfalls with my assets since that one so i don't have to go through that ordeal anymore they are not playing out here
Solid video! I've been in the employee benefits space for the past 8 years, with a big focus on HSAs. This video should be shown at open enrollment meetings! There's such a gap in HSA education, with a large amount of account holders just sitting on cash. A financial advisor I partner with once told me 'an HSA is the most powerful investment vehicle out there.' Thank you for putting this together.
Thanks for watching! We love the HSA. Feel free to share with your groups 🙂 We work in the employee benefits space helping with Medicare, so we know the conversations well...
Tax advantage #4: if you contribute to an HSA through a qualified cafeteria style payroll deduction, that money is not only shielded from state and federal income taxes, but also from payroll taxes like Social Security and Medicare. In that situation it is a quadruple tax advantage.
I went to the comments looking a comment like this. When I do my annual income tax filing I submit how much is in my hsa, is that money taxed then or is it just for documentation?
A "cafeteria" benefits plan is one where employees choose their deductions and contributions, usually upon hire or annual open enrollment periods. The "cafeteria" moniker is due to the way the participant "chooses" which plans and contributions to take off of a "menu" of options your employer provides. If you have such an HSA through a workplace plan and you can elect to contribute to the HSA through payroll deductions, you **probably** have a qualified payroll deduction, but you may need to check the details with the plan administrator. And even in such a qualified plan, the contributions have to come from payroll deductions to avoid SS and Medicare taxes on the contribution amounts. Many plans allow account holders to add additional funds on their own, but funds contributed that way will *not* avoid payroll taxes.
Another possibility many people don't know about is that you get a once in a lifetime ability to fund your HSA from your IRA without paying taxes on the IRA withdrawal as long as you move the money directly from the IRA to the HSA. Again this is only once in a lifetime.
Wow, I did not know that! Wish I had! Thanks, Rick, for sharing. Obviously, maximum permissable contributions would still apply and this would be pre applying for Medicare @ 65 or when leaving employer high deductible health insurance at a later date. Correct me if I am wrong on this.
@@tinalippincott9823 you must still be covered on the high deductible health insurance plan to do this and you must also not be covered by any form of Medicare. I am a spouse insured on my husband's high deductible health insurance plan and made the once in a lifetime max contribution from my IRA to my HSA last year. Also make sure you have met or will meet the 12 months of coverage on the high deductible plan. Your HSA plan administrator can guide you.
ADDED BONUS - You can also withdraw from your HSA without the penalty after age 65 for NON-MEDIAL EXPENSES, but you would be taxed at your regular rate.
Never realized how powerful HSA. Starting a new job soon and will max out HSA with the pay increase I'm expecting to receive. Thank you for sharing all of this info
I'm on a HDHP for the first time this year, mostly because of the HSA and the tax benefits it offers. I did a lot of research, but one thing no one tells you is that you can only invest in the amount that is above a certain minimum threshold, as defined by your provider. For my case, that amount is $2,000. This means at least $2000 will always be sitting in cash and I can only invest in the amount that is above that.
My HSA was the same but I had to keep $1000 in before the plan allowed me to invest. I didn't like that so I opened a Fedeity account and moved everything over to a fedelity HSA so I can invest 100% of my HSA funds. I recommend you do the same because $2k is alot to be sitting there doing nothing
@@z14sniperzps43 Thanks for the reply. I didn't know that I could choose any provider I wanted...I thought I was stuck with the one set by my employer. I just checked and it looks like I can switch. But the downside is that I can't use pre-tax deductions and instead must use post-tax dollars to fund my HSA. I would potentially get the difference back via my tax returns.
WHAT??!!?? You can reimburse yourself? I had no idea! I wish I'd seen this video 20 years ago! I just sent to my kids so at least they can take advantage of this excellent information. Thank you!
@@Theretirementnerds I have only built about 1500 in my HSA. Do I switch it to investing?. Our HSA only lets us invest 100.00 we can't control the amount. Hope that makes sense. Thanks again for all your help!
@@mariad3011 That is why Self-Directed HSA accounts exist. roll it over there and invest as much as you want in almost anything you want (i.e - Rental property (don't payment), Crypto, Any legal, for-profit Businesses, Stock, Bonds, Mutual Funds. That's where the millions are made- gains on these type of investments using whatever funds are in your HSA account- that way you don't need 30 years!)
I feel lucky any year I don't max our deductible. Seems to be every other year. $400 goes in every month, $400 goes right back out. At least I get one of the tax advantages.
All good advice. I essentially don’t spend my HSA at all and invest 100%. I use it as a secondary retirement account, but with obviously better tax benefits than a traditional or Roth IRA/401k.
Thank you so Much! You saved me from being penalized on my Medicare supplement premiums being paid out of my HSA account. I had just set up auto pay for my supplemental. I had no idea it was not allowed until I saw your video.
Finally got an HSA this year and was shocked (in a good way) to find out it's effectively a pre-tax investment account in a savings account's clothing. I have mine through Fidelity and it's paying close to 5% just having it parked, but once the balance accumulates a bit I'll definitely be investing.
oooh man, thanks for this vid!! I have HSA but totally forgot to setup my investment acct. missed out on the recent market run but better late than never! thanks again!
Another detail that many don’t know is that, for a married couple with both covered by an HSA eligible medical plan as a family (both are covered by the plan from one of the spouses), even if they cannot go over the family maximum contribution limit, if they are both 55yo or over, they can both do the $1000 catch-up contribution, Just note that the catch-up contribution is specific to each spouse, not joined, and therefore needs to be done to each spouses separate HSA account, as there are no HSA joint accounts.
@JI-620 so I am trying to learn as much as I am 62 right now. My neighbor sent me this video as he is also trying to learn. So I have an HSA account. We are self employed and have insurance from the marketplace. You say an HSA is not a joint account? I am confused our insurance is both of our names. I have always used our HSA account for both of us? Am I wrong and is he supposed to have a separate HSA?
@@annethomas5662 I had the same concern. I am not an HSA expert but from what I understand your HSA account can be used for your spouse and immediate family members. I don't think anyone other then the account owner can contribute to the HSA.
@@annethomas5662 If you and your spouse are both covered by an HSA-eligible plan, if you don’t count the catch-up contributions, your family HSA contribution limit for 2023 was $7,750. You can allocate this amount to one HSA in your name, or split it between your HSA account and your spouses separate HSA account, in whatever proportion you like. Separately, you and your spouse are 55+yo and therefore each of you can make an additional catchup contribution of $1000 (total $2000), however, you can only add your $1000 to your account, but your spouse would need to add his/her $1000 to his/her own separate HSA account (would have to open one if he/she does not already have one. HSA accounts are individual, not joint. If the healthcare plan is through an employer or marketplace, and it already came with an attached HSA account, that account is likely in the name of the subscriber to the plan which is probably you, but you need to check. That is perfectly fine to add your family contributions, and $1000 catchup for yourself, but your spouse would need to open/have a separate HSA account for his/her other $1000 catchup contribution. Even if you keep two separate accounts, since you were covered by the same plan, the funds can be used for eligible medical expenses for both of you. This is how I understand it. Your tax advisor may be able to provide more info. You are still in time until the filing deadline to make the other $1000 catchup contribution for 2023 if you did not know to do it last year. For reference, see IRS Publication 969, sections for “Contributions to an HSA” and look for “Rules for married people” on Page 7. Hope this helps.
@@annethomas5662 Fromwhat I’ve learned in comments here and elsewhere, the HSA can be a Family account, and that sounds like what you have. When making the additional 1000 catch-up contribution, that can only be used once per account (per year). If you are both 55, one of you might look into getting a separate HSA (or both of you do it and stop funding the Family Account). This way you can each contribute the additional 1000 for the catch-up contribution, whereas otherwise your Family Account could only accept 1000.
Great video. I’ve had an HSA for 10 years, wish i had the option to have one years earlier. Max it out every year if you can, invest it and watch it grow. 💰💰💰
I loooove the HSA account! We also do a limited FSA account on top of the HSA so we can pay for dental and vision. Our kiddos braces were from the limited FSA, the max being $3050 in 2023 which covered most of the braces! Best of both worlds and never have to touch the HSA investment account to get that maximized compound interest baby!
@@Theretirementnerds thanks so much for your channel!! While we’re a bit away from retirement being millennials, you give such great sound content that is super useful for when Medicare considerations have to start! And your guest(s) are so knowledgeable as well!!! Newer to your channel but just fabulous and for some reason fits so much into our FI/FIRE mindset!
As someone has started a HSA, I love the concept. However, medical costs have skyrocketed. In the case of an emergency, nevermind if you have kids, one feels a bit exposed with a high deductible health plan.
We've been investing in an HSA since 2018 and not using it for any medical expenses. Investing has helped reach $75K. I hadn't heard about reimbursement for pre-retirement expenses. I need to start a folder to save the receipts.
My employer also contributes to my HSA account, does the six month prior to starting/applying for Medicare count for them also. I am 67 and getting ready to retire in six months. I really appreciate this as I would’ve continued contributing to my HSA account up until I started Medicare. Thanks, Mike.
This video will help A LOT with that question. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-xKuXEojvdmA.html Yes, the 6 month lookback applies to your employer
I like the way you explained how to reimburse yourself. I didn't know that about it. We just switched insurance to a high deductible plan with an HSA. I'll divert some funds from solo 401k to start funding HSA. Thanks
Thank you for watching! One way we handle the receipts is we take a picture and email it to ourselves with the YEAR HSA Family Member in the subject line so we can look them up easy in the future. Other friends will set up a separate email account like FamilyHSA@gmail or something and do a similar idea. Hope that helps!
Lets get this important information out there. If you plan on working to 67 and the place you work at has 20 or more employees and offers a group health plan you do not need to apply for Medicare at 65. You can wait until your turning 67 and continue to put money in your HSA. So many people are told by friends or family that you must apply for Medicare at 65 and that is not always true. I plan on waiting myself. Now applying for Medicare at 65 could lower your out of pocket cost of insurance depending on what kind of insurance coverage you have at work but if you save those receipts you can reimburse yourself.
Also if this helps anyone - couples counseling IS NOT a qualified medical expense unless you have a note from a medical provider and the counseling is addressing an existing mental health illness/issue. Made this mistake and had to pay tax on my distributions from my HSA. Won’t let that happen again!
Excellent point Casey. California and New Jersey do have state taxes, but your HSA will still be able to grow in those states avoiding Federal taxes. So, there is still an advantage to these accounts, just not as vigorous as in states that do not apply the state tax to the HSA. Thank you for watching and bringing that up!
Increasing tax rates are the reason I rolled over my 401k to a Roth. I don’t want to be 59 paying taxes on current income on withdrawals made from my retirement account.
Pre-tax contributions may help reduce income taxes in your pre-retirement years while after-tax contributions may help reduce your income tax burden during retirement.
Both have their perks but you can also save for retirement outside of a retirement plan, such as in an individual investment account or employing the services of a retirement planner/investment advisor.
Hack#0, if applicable use LPFSA first (some employers provide it for dental and vision expenses) which is pretax and you don't have to spend post-tax/out-of-pocket money. Most HSA has 100-1000 dollars buffer before investemnt rleased to this buffer. So one can djust this buffer. This buffer comes 2nd when you use your card (example MetLife LPFSA + HSA card) after LPFSA allocated money is used. LPFSA can be adjusted between 0-xxxx based on your familt/tax situation and anticipated usage for dental and visioj out of pocket expenses.
I really need people like you to make videos that help explain all of this to me. This way we can freeze and reverse the video and listen to it when we need to. All of this seems so overwhelming that it makes my head spin.😵💫 LOL, Thanks for sharing! Btw, I’m hitting the Subscribe button Now!😅
Noice ;) ... I do exactly everything as you mentioned. I am on year 1 at 52 years old and am excited to see where the next 15 years of it go till I retire.
This was so helpful! Thank you, do you have any videos about whole life insurance policy and tax benefits for those? I’d love to know more about that as well. Thanks!
Glad to see you are back! Hope you're holding up okay. Yeah, the HSA is da bomb! I didn't contribute for ~ 4 yrs while I was getting by on my savings, but since last year when I turned 59.5 and then 60, I've max'd '23 and '24 and plan to do so thru my 64th birthday year. But that is too squirrelly those months prior to turning 65/applying for Medicare, it would only be a couple of months for me at most anyway. The one other thing to know about HSA's is, you can indeed take distributions for non-healthcare-approved costs, just, for that, the amount will be treated as a traditional IRA distribution 'regular income' and that will be taxed...So it's best to just use it for healthcare...
Glad to be back 🙂 doing well, thank you so much! Don't be afraid of your 65th birthday year! If you're going on Medicare at 65, it is super easy. Your last contribution month is the month before your 65th birthday. Yes, it is pro-rated, but shoot me an email to erik@90daysfromretirement.com with your birthday month and I'll do that math for you 🙂 We have this video too: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-xKuXEojvdmA.html
Also, something that was sort of mentioned, but not too clearly…. HSA contributions, assuming they are funded with deferrals through an employer plan, are not subject to payroll tax. Which is an additional layer of tax savings. This differs from 401(k) Pre-tax contributions which will lower your taxable income, however you still pay payroll tax on the these deferrals.
Quite different accounts. Roth IRAs are specific retirement accounts built to use as income after age 59.5. Roth contributions are taxed. Roth growth and withdrawals have a lot of flexibility and are tax-free. HSAs are built for healthcare expenses, but have a nice benefit after age 65 of being opened up to use in different ways. Contributions are tax free, growth is tax free, and withdrawals for qualified expenses are tax free. That's where the strategy in the video comes - if you are able to pay for medical costs out of pocket and invest the HSA, later in life, you can reimburse yourself tax free and then use those dollars later however you want. Very different accounts. Many people have both. Hope that helps!
@@Theretirementnerds - Thanks for the engagement on this comment. I have annual medical expenses that are approximately equal to my annual contribution limits for the HSA. So, I'm choosing between reimbursing myself (and funding a Roth) or just leaving the funds in the HSA. Leaving the funds in the HSA will give me some of the same features of Roth (tax free growth, ability to access contributions via medical receipts) while setting me up to efficiently cover health expenses during retirement. The tradeoff for me is (I think) is that I expect to retire before 65 (possibly even before 55) -- so I am thinking that a Roth (with ladders...) gives me more options in that early retirement window. Does anything else jump out at you that I'm overlooking?
I'm 49 and wish I would've known about HSA a LONG time ago - I don't know if it's too late for me but I started using an HSA about 3 years ago through my employer and I invest my money heavily and I hand-pick the more aggressive stocks - hope I can build a decent amount before I retire. (I don't want to include or think about inheritance dollars which I will get a large amount, I want this to be like an added bonus).
For sure. Same way here. I hope I never need my HSA, but over time, I'm hoping that the balance is nice and healthy once retirement hits. Thank you for watching and sharing your thoughts!
I wish I knew about it much earlier as well. Discovered it by accident. Absolutely no one in my workplace had ever heard of it. I believe could’ve had as early as 2004. A huge missed opportunity for thousands of workers. Sad.
The part about the HSA I didn't hear you discuss was the fact that the type of plan you are on is a high deductible which means if something happens to you you have a high amount go out of your pocket. Also means no co-payments you have to pay the difference between the negotiated Network prices for medical expenses outside of a few Wellness checks. I was surprised to find out a routine skin exam is not a wellness check so I had to pay for it out of pocket. I'm not really tracking out-of-pocket expenses I anticipate they will not add up to much. Generally these plans are very low premium from your employer and then you are freed up financially to contribute to the HSA, besides that I wish I knew about HSA a lot sooner!
Great part is not only do you save our marginal tax rate on the way in, but FICA taxes as well. So, if you were to eventually use it in retirement for non-medical expenses it would still be better than a traditional IRA, bc you wouldnt have to repay those 7.6% of FICA taxes! Also, if you dont have the money to max out or significantly contribute to an HSA, just open 1 and put in like $100, bc I believe that would start the date form which you can at least start saving your medical bills, so then in later years if you max it, you will have more bills saved up then
You could also contribute to a limited purpose FSA to cover anticipated medical expenses and leave the HSA alone. The only negative is the LFSA is use it or lose it, so don't over contribute.
The 'bummer' mentioned regarding HSA ineligibility of Medgap premiums can be a blessing in disguise because the HSA *can* pay for Medigap deductibles. With a big enough HSA, Eric the Medicare Agent could reasonably ask "is there any reason to NOT enroll in HDG ?" Personal note: I was clued in early to the goodness that is HSA, but I didn't invest early on, and I used the HSA for medical expenses as they cropped up. I could have done much, much better, and bankrolled our Medicare costs for life. And just to rub a little salt in the wound, a properly managed HSA would have eased my current RMD issues.
I would love to retire early and use my HSA funds to pay for health insurance premiums, but the IRS doesn't allow this. Makes zero sense other than trying to force people to work until 65.
Title of tip 3 is leaving the benefit covered a bit since dollars saved in an HSA do not have to be used on medical expenses incurred while in an HSA plan. Important detail that is seems the majority of people misunderstand.
I have to say, while the idea of maximizing the benefits of an HSA is intriguing, it feels a bit like exploiting loopholes in the system. Shouldn't healthcare be about taking care of people, not finding ways to manipulate tax systems?
Lol do some research into how the healthcare system actually works in the USA and how bad you're being overcharged. If anything hsa advantages don't even come close to making our healthcare system affordable for people that don't qualify for subsidies.
You could also invest your HSA money and run into the big stock crash that happens every 10 or so years that pretty much reset all your gains if not put you into negative territory, and what if you need to withdraw money for a major medical expense at that time. You have to be really lucky to have compounded growth. No one can time the market
HSA provides a triple tax advantage, allowing tax-free contributions, growth, and withdrawals for qualified medical expenses. Implementing smart HSA hacks can supercharge your wealth.
For me, involves strategically timing your HSA withdrawals. By covering current medical expenses with out-of-pocket funds and letting the HSA funds grow, I'm building a robust tax-free savings pool for future needs.
As far back as you had an HSA. If I've had an HSA for 10 years and paid for qualified expenses out of pocket 10 years ago with non-HSA dollars, I could reimburse myself today for those 10-year-old expenses - tax free.
QUESTION: When investing the HSA, are the returns received from the investment considered a 'contribution' creating a tax issue with Medicare's 6month look back? If you stop contributing funds for the 6 month look back, but the HSA continues to grow, due to investment, is the growth considered a contribution?
No, growth is not a contribution. The 6 month rule is a tricky one that gets misunderstood quite often. If you haven't seen this video, it clarifies: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-xKuXEojvdmA.html
7:30 hint hint, if your doctor recommends something, even just an OTC supplement, to help with some _specific_ medical condition you have, get that recommendation _in writing_ and keep that “doctor's note” with the receipts for said item.
HSA bank or Mercier maintains $1000 saving after you reach a $1000 it will be invested. I used to pay the $500 contribution by my employer to any qualified co-pay expenses within a year for my dental, medical or medicine.
Hope you would cover the case that you have to apply for Medicare because of retirement, but you did not stop HSA contributions for last six months. There should be a way you can fill a form and withdraw the contributions so they become taxable income. Correct?
I would like to do a IRA to HSA rollover but as of now my employer health plan doesn't qualify me to open one. I will be able to open an HSA in the month i retire if I get a high deductible plan
Imagine and add the savings on Taxes upfront. Assume you are on the 20%+ bracket and you maxed your HSA contribution of $4,000 (conservative), you just saved (made) $800 in return.
I’m new to HSAs and this may be a simple question - say I’m “Eric the Investor” and use an HSA to invest in funds. How is an HSA beneficial compared to a 401(k) where employer matched contributions are common? Asking this without any potential awareness that employers also match contributions to an HSA… so I’m not sure
Great question. Yes, employers can also contribute to HSAs. The big benefit is tax deductible contributions, tax free growth, and tax free distributions for qualified expenses. In a perfect world, you and your employer are contributing to both 🙂
I’m 46 and based on the advice of a coworker I changed my employer insurance to a high deductible for this year so I could start contributing to an HSA (I’d been on autopilot for selecting my benefits over the years). I found your video very informative and based on this and my coworkers experience, I only wish I had been doing this sooner. Hopefully the little I’m able to contribute from now until retirement helps. Because of the minimum needed before you can start investing I don’t expect to start investing this money until halfway through the year… I’ll have to consider the options before then.
Hello. I am not really understanding this video. I currently have an HSA account. I have to set the amount in advance through my employer the year prior through our open enrollment period. I charge my medical expenses, doctor visits, etc to the HSA account, but at the end of the calendar year any excess funds up to around $570, I was told, would carry over. Nothing over that amount. So how do you save/invest to these large amounts that you are noting in this video when they are capping me at a $570 rollover? Thank you.
Hi there, what you are describing is an FSA, not an HSA. FSAs work differently and, typically, have the use-it-or-lose-it concept you are describing. Another account type you could have is an HRA. Works similarly to what you described. FSA - you and your employer can contribute. HRA - just your employer contributes. Hope that helps!
There are 5 states where the triple tax advantage doesn't apply. In California we have to pay taxes each year on dividends and capital gains in the HSA.
