Author Topic: Health Savings Account - Deferred tax  (Read 2244 times)

TwoCitiesCapital

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Re: Health Savings Account - Deferred tax
« Reply #10 on: November 06, 2019, 05:19:30 PM »
I recently opened an HSA and a guy I work with was explaining to me that you can pay for a medical procedure out of pocket and get reimbursed anytime from the funds in your HSA as long as you have the receipt. So basically you could use the triple tax free advantage merely for investing. Save every receipt until you’re “pick an age” (even before retirement age) and get reimbursed tax free.

Now I’m not sure if there are big structural differences between HSA providers (besides the cash holding minimum for investment). Anyone with knowledge in this space?

Sounds like a lot of work...and I'd never trust myself to keep records that long (30+ years in my case to maximize benefit deferri).

I just pay for my minor medical expenses out of pocket and use my HSA for investment purposes


fareastwarriors

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Re: Health Savings Account - Deferred tax
« Reply #11 on: November 06, 2019, 09:16:29 PM »
I use my HSA as an investment account.

CorpRaider

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Re: Health Savings Account - Deferred tax
« Reply #12 on: November 07, 2019, 05:15:34 AM »
I reimburse myself for medical expenses when incurred.  Use payroll deductions to fund in order to get employment tax benefit. 

Record keeping burden for the deferred reimbursement strategy is ridiculous and risky imop (nightmares of data loss in year 20 followed by audit in year 25...when you are taking all these big suspicious $$$ amounts out).  I max it out and the account still grows nicely; probably not a great option for everyone depending on terms of the HDHP and your annual medical expenditures.
« Last Edit: November 07, 2019, 05:19:52 AM by CorpRaider »

Castanza

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Re: Health Savings Account - Deferred tax
« Reply #13 on: November 07, 2019, 05:30:28 AM »
I reimburse myself for medical expenses when incurred.  Use payroll deductions to fund in order to get employment tax benefit. 

Record keeping burden for the deferred reimbursement strategy is ridiculous and risky imop (nightmares of data loss in year 20 followed by audit in year 25...when you are taking all these big suspicious $$$ amounts out).  I max it out and the account still grows nicely; probably not a great option for everyone depending on terms of the HDHP and your annual medical expenditures.

Thanks for that. Also i guess if you live e generally healthy life and are lucky enough to avoid any significant medical expenses you wouldn't be getting reimbursed much to begin with. Does seem like pain to hold onto receipts for 20 years.