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rbgarr
09-28-2008, 04:23 PM
The boatyard I work at is moving to a high deductible health plan.

I understand that individually funded HSAs can
1) help pay annual deductibles and
2) IRAs can be rolled over to fund HSA accounts.

Anyone have experience or advice with any of this?

Thx

Bob Adams
09-28-2008, 04:36 PM
Ayup. I love my HSA. Just be careful not to overfund it. You lose what you don't use.

clancy
09-28-2008, 04:48 PM
Ayup. I love my HSA. Just be careful not to overfund it. You lose what you don't use.

There is a difference between a Flexible Spending Account (FSA) which you probably have and a Health Savings Account (HSA). With a HSA, in my company, you can carry over the funds year to year and they are portable, change companies and the account goes with you. Funds in my company's FSA can not be carried over year to year.

clancy
09-28-2008, 04:55 PM
My company is offering an HSA for the first time this year.

Although employeee contributions are pre tax New Jersey is one of the three states that imposes a state tax on them.

I just did an online cost comparison on my company's website. A traditional plan will be cheaper per year for me but I will be switching from Aetna to Blue Cross because a specialist I see is not in the Aetna network.

clancy
09-28-2008, 05:36 PM
The key points of a HSA are.

Higher deductible / lower premium
Deductions from your pay are pre tax
Account earns interest
Pay health care expenses from your account tax free
Account is portable
Employer may contribute to your account

Most normal medical expenses, vision, dental, prescriptions and even most over the counter medicines can be paid for out of your health savings account. If you would like I can PM you the lists of expenses that the IRS will and will not allow.

rbgarr
09-28-2008, 08:07 PM
Yes... please do. Thx. I also understand that HSA funds can be used long after the expenses are incurred and after age 65 are withdrawn tax-free. Thus if I spent $5K on assorted medical expenses (including OTC stuff) over the next ten years and kept receipts I could get that $5K back at retirement (hopefully an appreciated amount from a lower investment).

paladin
09-28-2008, 08:59 PM
Clancy, please post the info for me also. I've got to go through this process in the next year......

Bob Adams
09-28-2008, 09:11 PM
There is a difference between a Flexible Spending Account (FSA) which you probably have and a Health Savings Account (HSA). With a HSA, in my company, you can carry over the funds year to year and they are portable, change companies and the account goes with you. Funds in my company's FSA can not be carried over year to year.

My bad, I do indeed have a FSA. Sorry!

paladin
09-29-2008, 04:51 AM
I have a mixed bag of a paid up "semi-government" plan that I carried over that covers general medical/optical/dental with the deductibles, then I now collect social security/medicare/medicaid benefits, and a secondary plan to cover anything that the others don't......I actually pay a total of 83 bucks a month for health insurance, and that portion picks up the deductibles from the other two plans.....but will change a bit after March, next year.

clancy
09-29-2008, 04:17 PM
Here's a link to thr IRS page about Health Saving Accounts.

http://www.irs.gov/publications/p969/index.html