Health Savings Accounts

[The Thriller]

This article got me thinking about them. What are your thoughts/experiences with them?

https://www.deseretnews.com/article...ccount-the-way-to-go-for-state-employees.html

 

[Loki]

Anything that makes it so you don't pay as much income tax is a good thing. Or so I've been told.

 

[One Brow]

I have never used a health savings account.

I think that a combination of a savings account and a catastrophic coverage can be useful, certainly. I dink the overall evidence that the combination saves money is weak.

 

[TroutBum]

Anything that makes it so you don't pay as much income tax is a good thing. Or so I've been told.

Not really. If you ask Pearl, he'll tell you all sorts of things that help reduce taxes that are bad. I'm sure most of us would agree with him too. Indexed annuities, for example, get some tax relief, but you'll be stuck in it for 10 years and get a sub-par rate of return. (you won't lose money either) So it just depends on what works for you and your situation.

 

[Loki]

Not really. If you ask Pearl, he'll tell you all sorts of things that help reduce taxes that are bad. I'm sure most of us would agree with him too. Indexed annuities, for example, get some tax relief, but you'll be stuck in it for 10 years and get a sub-par rate of return. (you won't lose money either) So it just depends on what works for you and your situation.

I'll trust you guys on that stuff I'm no annuities wizard!

 

[VINYLONE]

This article got me thinking about them. What are your thoughts/experiences with them?

https://www.deseretnews.com/article...ccount-the-way-to-go-for-state-employees.html

I guess they're a good idea if you think you're going to have a lot of health complications throughout the year. Aren't there some negatives if the money you saved doesn't get spent by the end of the year?

 

[seattlejazzfan]

Health Savings Accounts are a good idea.

 

[Scat]

I guess they're a good idea if you think you're going to have a lot of health complications throughout the year. Aren't there some negatives if the money you saved doesn't get spent by the end of the year?

You don't use it, you lose it.

My wife and I have taken full advantage of the HSA that my work offers. Of course she has multiple health issues and I have three kids so there is no shortage of medical needs. This year and in the past I have been able to add $5k a year to my HSA tax free. And we usually run out before the year ends. This year however we were able to use the HSA to put braces on 2 of the three kids and pay for them in full. It can also be used on over the counter meds so if at the end of the year you have any left you can stock up on ibuprofen, tylenol, Nu-Quil, etc.

As I understand it it however, the new health care bill is going to reduce the amount I can place in my HSA tax free by half to $2500k. Great, I get to pay more taxes... Obama strikes again.