When to study out HSA options???

[junkman]

You do realize to whom you are responding?

Our resident forum troll spends months (years?) deciding which PDP to buy.

Rick

Some people have to be right and calculate down to the penny how much life insurance they need. Others just say screw it - 10 - 15 times income and fill out an app. Some calculate how much retirement income they need and monthly savings amount, study portfolio theory taking all of the details of diversification. Others say screw it. Max HSAs, IRAs, SEP & spend the rest. Guess who has money to mess around when they're old.

Lost is 10 years past when HSAs came out and missed all of that oportunity. At least he has the good fortune to have a young(er) wife who is still working and can support him. Perhaps he'll learn. It matters not (to me).

 

[GreenSky]

Perhaps he'll learn. It matters not (to me).

Not a chance. He's just a troll.

Rick

 

[LostDollar]

Don't make it complicated. Put 1 or 2 years of out of pocket or whatever level you're comfortable with in a fixed dollar HSA than dump the rest in a mutual fund. Note that the fund has to be at an institution managing it so that it qualifies as being acceptable to legally receive HSA money. I still have one at Optum because they had product available when the law was 1st put into effect. One available choice is Vanguard's S&P 500 indexed and runs ~10% +- depending on what's happening. Only put money you don't need in there. It was negative following the crash in 08 & 09 and following.

I suddenly have a bit of a crisis on my hands. We are having some difficulties with the local Credit Union I thought would be the best place to start an HSA; because they can't keep up electronic access/communication with the third party that is administering(?) their HSA program.

If one has HSA eligible health insurance in place at the beginning of the year, and suddenly comes up needing doc and surgery services prior to establishment of an HSA, can you still get reimbursement? For example, if you have to spend $800 on medical services on Jan 5, but can't get an HSA until Jan 20, can you reimburse yourself for the $800?

I think we can get her an HSA immediately-before doc expenses incurred- at a bank I have an account with, but it's not a place I'd wanted to have her set up long term financial dealings with-so having to decide on correct course of action to get expenses covered.

 

[scagnt83]

I think we can get her an HSA immediately-before doc expenses incurred- at a bank I have an account with, but it's not a place I'd wanted to have her set up long term financial dealings with-so having to decide on correct course of action to get expenses covered.

You can take out an HSA in about 15 minutes online. hsabank.com or healthsavings.com are both good options.

Local banks suck for setting up an HSA. Most dont do enough business with them to be efficient or effective like the big players can. A local bank would be my absolute last choice for an HSA... national big name bank maybe, but no way on a local one.

----

You cant pay for expenses that were incurred before you set up the HSA. You MUST have the account set up before the care/expenses occur. Go online today and get it funded asap.

 

[LostDollar]

I just realized I had never come back here to say thank you. I was feeling desperate not knowing quite what to do. I really appreciated the replies.

My wife went back to credit union number two and had a "discussion" with the branch manager. She had to wait for the funds clearing period, but closed the account. After looking at some of the options mentioned here, she still preferred to stick with a local credit union if possible. We did have one more possibility, which we visited. It was a night and day customer service experience. There was still a bit of a knowledge issue on the part of the rep and some institution documents, but we got a functioning HSA with two debit cards and a very good overall customer service experience.

This met our current needs and handles a beginning level of funds. We can reevaluate the other options in the future when she accumulates more funds.

Thanks for the courtesy of giving me some answers to work with and focus thoughts.
LD

 

[junkman]

Every local agency that I know of jumped on HSAs when first available. It's amazing that so many people are still wandering around lost in the woods. Max out all of your retirement and other tax sheltered accounts during your working life and you won't end up broke and eating dog food when you quit working.

HSA's are free money because they're funded with funds that would have been spent on premium or taxes. Take a given HSA qualifying plan at a given out of pocket. Now look at the same OOP with lower deductibles and copays. Only 3 people have ever told me that the copays were worth the price.

 

[VolAgent]

Every local agency that I know of jumped on HSAs when first available. It's amazing that so many people are still wandering around lost in the woods. Max out all of your retirement and other tax sheltered accounts during your working life and you won't end up broke and eating dog food when you quit working.

HSA's are free money because they're funded with funds that would have been spent on premium or taxes. Take a given HSA qualifying plan at a given out of pocket. Now look at the same OOP with lower deductibles and copays. Only 3 people have ever told me that the copays were worth the price.

Most people get health insurance through their employer or the government in some fashion. Not exactly HSA prospects.

 

[junkman]

I said

Most people get health insurance through their employer or the government in some fashion. Not exactly HSA prospects.

Not really sure what your point is. We don't make money on the HSA account but we do make recommendations on benefit structure and many here are self employed and have to acquire their own health insurance. Anyone buying or selling medical insurance should understand the basics of how they work and know that they can find out any of the very technical answers when needed. This certainly applies to a benefits broker.

HSAs are the most cost effective way to provide medical benefits. Anyone self-employed, making health insurance recommendations or making the buying decision should have them as an option. I've seen very few people buy a non-HSA qualified plan once they were educated. The only people that opt for copays are those whose employer is paying the premium and doesn't include an HSA option or doesn't price the HSA fairly.

Look for groups where the incumbent agent has become complacent and hasn't offered the option. If the group doesn't want to shop, simply ask whether they'll give you a AOR for a much better plan from the current carrier. In other words., you bring an option that the current agent hasn't & you get the business. If you have a chance of the AOR, have the group sign a letter authorizing you to get a quote. Simply request the same out-of-pocket as currently in-force without copays. Get another with a higher OOP and add in an HRA as an option.

You have to have the commitment that you can get the business up front or they might implement with the current agent and leave you out. Remember, knowledge is like sex - give it away and you can't charge for it.

 

[LostDollar]

Assuming for a moment that one has enough funds to allow hsa and ira contributions,

In relation to an IRA,

Can you suggest reading or provide comments about the pros and cons of conventional and Roth -- and the type(s) of overall financial pictures in which each is the best choice?

 

[junkman]

Efficient Frontier

Begin with Four Pillars. There are discussions that make taxable vs nontaxable moot. Better to expend your effort understanding portfolio construction and controlling expenses.

There are inheritance/transfer benefits to a Roth. That info is all over the web.