Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#1
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HSAs in Retirement- No Tax Advantage?- No Point?
I have a Health Savings account. Money is put into it Pre Tax by my employer- so the advantage is it is money that is never taxed.
I'm aware that some people have Health Savings account while retired. I'm wondering why... Unless money can be put into the HSA Pre Tax from pension payments you'd be putting money that has Already Been Taxed into the account. What would be the point of this? I'm retiring soon and working on money strategy. Thanks!
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Dance Like No One Is Watching |
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#2
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The money that you deposit into the HSA can be invested, and the investment income will not be taxed. That is the tax advantage.
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#3
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Why contribute to an HSA when retired? Well...
Retirement doesn't begin at 65 but the tax advantage of HSAs does. Ero, retirees under 65 can and should contribute to HSAs, if eligible. |
#4
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My employer provides $2700 annually for me and $1700 for my spouse into an HSA for medical related expenses. I can also claim on a voucher the amount deducted from my Social Security for Medicare Part B and get reimbursed $170.10 monthly or $2041 annually. Or purchase Supplemental Insurance like F plans reimbursed.
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#5
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My questions may seem silly, but this is a subject that I'm not well versed in.
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Dance Like No One Is Watching |
#6
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I am not an expert on HSA's, but it seems to me that you could deposit the money into a Fidelity Investment account, and buy CDs or bonds and let the money accumulate tax free. You don't need to spend it until you need it. And, as long as you eventually use the money for qualified medical expenses, the earnings would not be taxed. I would suggest calling Fidelity and asking them what investment options you would have with their HSAs accounts. They also have an office at Lake Sumter.
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#7
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We still have an HSA from my wife's previous company. She max'd it out every year and we hardly ever use it. We treat it like another 401K. We keep enough in the actual HSA to cover any deductible or copay we may have. The rest we transfer into an investment account which is attached to our HSA (same company). I select the funds that money is invested into. If we need more money in the HSA we can transfer it back from the investment account. We haven't touched the HSA since moving here, since the health insurance plan we currently have has no deductible. We're not yet 60 so that money just sits there earning (or not-lol) until we decide we need it.
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Birthdays Are Good For You. Statistics Show the More That You Have The Longer You Will Live.. We've Got Plenty Of Youth.. What We Need Is a Fountain Of SMART! |
#8
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The benefit is tax deferred compounding. You don’t withdraw until the bitter end is insight. Can put in index fund
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#9
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So using it as a tax deferral vehicle is disallowed and the growth is taxable. Now that you have mixed non deductible with deductible how do you determine the non taxable withdrawals?
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Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence. John Adams |
#10
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#11
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One of the posters referred to "previously taxed money".
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Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence. John Adams |
#12
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As I understand it, all HSA contributions are tax deductible. From "investmentfirms.com":
"How Do I Know If My HSA Contributions Are Tax Deductible? All HSA contributions are tax deductible. The earnings from investments made through your HSA as well as withdrawals for medical expenses are also tax deductible. The tax advantages provided by an HSA makes it very attractive compared to more traditional types of medical coverage." |
#13
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I will be on Social Security and Part A and Part B. I do have a high deductible BC/BS Health Insurance plan. With this in mind am I allowed to have a HSA?
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Dance Like No One Is Watching |
#14
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If you are on Medicare, Part A or Part B or both, you are not eligible to contribute money to an HSA. But, you can still use the money in the HSA after you enroll in Medicare.
Last edited by retiredguy123; 11-18-2022 at 12:51 PM. Reason: Correction |
#15
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We love our HSA account. All funds are on a bank debit card. We use it to pay things like going to the dentist, Chiropractor, and other doctor visits that are not covered by Medicare. The best thing is we use this account to pay one of our Medicare part B annual payments. Put as much are you can into this tax-free account as it is one of the best tax shelters going!!
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