21
votes
Accepted
Which is better: Employer-sponsored HSA or opening an HSA individually?
The big difference for me is that my contribution thorough a cafeteria plan also skips Social Security and Medicare taxes. That is a 6.2% (SS) + 1.45% (Medicare) tax on those contributions if done ...
- 116k
20
votes
Accepted
Can I afford to take this job's high-deductible health care plan?
My opinion is that, in general, the HDHP+HSA is usually a better option for both the employee and employer than a traditional health plan. But of course, the details vary.
Besides knowing the premium ...
19
votes
Accepted
Comparing HDHP vs PPO Plans: Am I missing something?
There are a couple of things that are missing from the analysis.
The PPO plans feature a copay for doctors visits and prescriptions. For example, if you need to see your doctor, under the PPO plans, ...
11
votes
Accepted
Why do HSA qualifying plans have a max deductible?
The government wants to encourage everyone to buy health insurance, because with more healthy people buying health insurance, the rates can be reduced for those that are less healthy.
Ask yourself ...
8
votes
Comparing HDHP vs PPO Plans: Am I missing something?
This really depends on your usage. I went with the High Dedux and HSA option this year... and discovered that until I'd hit the deductable, I didn't get any of the prescription drug discounts. If you'...
- 31.8k
8
votes
Can I afford to take this job's high-deductible health care plan?
First some numbers for 2021 from the IRS:
Annual contribution limitation. For calendar year 2021, the annual
limitation on deductions under § 223(b)(2)(A) for an individual with
self-only coverage ...
- 116k
6
votes
Accepted
I spend more on healthcare than my HSA can cover right now. How to handle reimbursements?
The HSA tax deduction comes when you contribute money to the HSA, not when you take money out. So you can contribute up to the max and take your maximum deduction each year, regardless of what medical ...
6
votes
What if an employer sets up and contributes to an HSA for an ineligible employee - can he withdraw the excess contributions with no penalty?
They're wrong. The IRS instructions (pub 969) specifically say:
To be an eligible individual and qualify for an HSA ... You [must] have no other health coverage except what is permitted under Other ...
- 127k
6
votes
Wife has FSA with employer, and my new employer offers an HSA plan. What to do?
I believe the following statement by JAGAnalyst is incorrect:
In your wife's case, if you have an HSA and she has traditional health benefits with an FSA, this is not considered a problem since she ...
- 101
6
votes
Accepted
Can you keep HSA funds if you change to a non-HDHP?
The HDHP requirement applies to your HSA contributions, but not to your HSA distributions.
Once you have money in your HSA, it is yours to spend on qualified medical expenses, whether or not you ...
6
votes
Moving from individual HDHP to family HDHP, can my wife only contribute to an HSA?
From the IRS:
Rules for married people. If either spouse has family HDHP coverage, both spouses are treated as having family HDHP coverage. ... [T]he contribution limit is split equally between the ...
- 14.6k
5
votes
I'm getting gouged on prices for medical services when using my HSA plan. How to be billed fairly?
The big difference for me under the High deductible plan has been that instead of paying the co-pay, now I am now responsible for the negotiated rate until I reach the deductible limit. The HSA is ...
- 116k
5
votes
Can a US expat have and use an HSA for the tax benefits while living abroad?
Look here: http://www.opm.gov/healthcare-insurance/healthcare/health-savings-accounts/frequently-asked-questions/
Under HSA Withdrawal:
Can I use my HSA to pay for medical services provided in ...
- 51
5
votes
Accepted
Can I pay past expenses using an FSA opened midyear?
The FSA can only pay for expenses incurred after it was open. This also applies in case of a mid-year change in election (such as due to marriage, divorce, child birth, etc.)
For example, according ...
- 34.6k
5
votes
Accepted
HSA/FSA, changing health plans mid year, concurrent coverage
You said "you can't have an HSA if you are eligible to contribute to an FSA," but that's not quite accurate. The fact is you can have an HSA, but you can't contribute to it if you have an FSA or any ...
5
votes
Accepted
What can I do with a HSA after I leave a HDHP
In order:
Yes, you can rollover an HSA, even if you don't have an HDHP:
You can roll over amounts from Archer MSAs and other HSAs into an HSA. You don’t have to be an eligible individual to make a ...
- 1,324
5
votes
Accepted
My dependent is covered by both HDHP and non-HDHP insurance plans - is this legal?
When we discuss HSA eligibility, we need to look at two factors. We need to look at whether or not you are eligible to contribute to your HSA, and we need to look at what expenses are eligible to be ...
5
votes
Accepted
Moving from Family HDHP/HSA, to individual HDHP/HSA and individual FSA?
Answers to your questions:
Can I continue with my individual HDHP from my employer and change my family HSA contribution to an individual; and at the same time can my wife do the individual FSA? ...
5
votes
HSA vs. Health Sharing Ministries
Your literal question is,
Have you seen a comparison of Health Sharing Ministry Plans vs. HDHP plans when the health sharing plan is provided by your employer & HDHP is personal?
No, I haven't ...
- 16.7k
4
votes
Wife has FSA with employer, and my new employer offers an HSA plan. What to do?
I work in the FSA/HSA/HRA industry and just wanted to point out that if your wife has a medical FSA, you cannot contribute to an HSA whether or not you are covered by her medical insurance plan. The ...
- 41
4
votes
Which is better: Employer-sponsored HSA or opening an HSA individually?
As others have mentioned, you avoid "payroll taxes" (Medicaid, Social Security, etc) by using pre-tax money rather than post-tax money.
However, there is one benefit to getting your own privately ...
- 261
4
votes
Which is better: Employer-sponsored HSA or opening an HSA individually?
As far as taxes go:
If you contribute to the HSA account through your employer pre-tax, that amount is not subject to the Social Security (6.2%) and the Medicare (1.45%) tax.
If you contribute that ...
- 3,036
4
votes
I'm getting gouged on prices for medical services when using my HSA plan. How to be billed fairly?
I had an HSA for two or three years. I found very routinely that my insurance company had negotiated rates with in-network providers. So as I never hit the deductible, I always had to pay 100% of the ...
- 20.8k
4
votes
Can a US expat have and use an HSA for the tax benefits while living abroad?
The threshold question is whether you qualify. The IRS in Publication 969 on HSAs says that to qualify for tax benefits you must set up a tax-exempt trust or custodial account with an HSA trustee, ...
- 4,839
4
votes
How to find HSAs?
By adding a phrase to your statement it becomes true:
I thought an HSA was something that I could open with any bank that offers one.
Of course this only helps you if your employer offers the ...
- 45.2k
4
votes
Accepted
Moving from individual HDHP to family HDHP, can my wife only contribute to an HSA?
Even if you are allowed to contribute to your existing HSA, you will receive the best tax benefit by making contributions through a payroll deduction. The IRS says that contributions to an HSA can be ...
- 116k
3
votes
Does this Health Plan qualifies as HDHP?
In order to qualify as a "High Deductible Health Plan" HDHP, the plan must do both:
Have deductibles equal to or exceeding the IRS guidelines
Not pay benefits, other than preventive care, until the ...
- 48.4k
3
votes
Accepted
Health Savings Account Insurance Reimbursement
Don't panic this happens all the time. I looked online for a form that can be used to redeposit funds back into the HSA.
This form can be used to redeposit funds withdrawn in error and cannot
be ...
- 116k
3
votes
Why do HSA qualifying plans have a max deductible?
I suppose one reason is that you could have a health care plan structured such that it is nothing more than an additional retirement plan.
For example suppose a high income individual wants to save ...
- 74.9k
3
votes
Can a US expat have and use an HSA for the tax benefits while living abroad?
My HSA custodian allows me to write a check to myself, to reimburse eligible expenses. I am subject to audit for those expenses. Nothing I've seen in the IRS rules seems country specific: there is ...
- 2,420
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