Good afternoon, Borg Collective...

The PPO healthcare plan in which I'm currently enrolled at work offers the added bonus of contributing to a Healthcare Spending Account which I can take with me upon retirement, i.e., it's not a "use it or lose it plan". That part of the plan I absolutely appreciate and max out the annual contribution, but the overall healthcare benefits of the plan itself could be better.

For that reason, I'm considering going back to an EPO plan that offers MUCH better coverage for only about $40 more per month. However, our EPO plans are not eligible for HSA contribution. Kinda sucks. At any rate, what products are on the market that offer contributions to HSA's for retirement healthcare planning?? I currently have accounts with Schwab and T. Rowe if y'all know of any HSA investments they may offer.

As always, thanks for the infinite wisdom of this group!!

I am a little confused. When you hit 65 you get Medicare and can then buy a supplement for copays and a prescription plan. You looking at money for assisted living?

You could open an individual account like this https://www.fidelity.com/go/hsa/why-hsa you can then transfer you current HSA balance to it and invest it as you see fit. Here is how you can contribute. https://www.fidelity.com/go/hsa/how-to-contribute

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Originally posted by ZSMICHAEL:
I am a little confused. When you hit 65 you get Medicare and can then buy a supplement for copays and a prescription plan. You looking at money for assisted living?

No sir. An HSA can be used to pay for co-pays and other qualified medical expenses. I will use this to supplement my healthcare costs after I retire.

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Originally posted by triggertreat:
Here is how you can contribute. https://www.fidelity.com/go/hsa/how-to-contribute

PERFECT!!! Thanks for that tip!!

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No sir. An HSA can be used to pay for co-pays and other qualified medical expenses. I will use this to supplement my healthcare costs after I retire.

^^^^^^^^^^^^
Can you pay premiums with these funds? For most people there is very little healthcare expense with Medicare, unless you get a really cheap plan.

I have an HSA and really like it, much better than the dumb FSA it replaced with the whole “use it or lose it” nonsense.

I like how I can use it to pay the usual medical bills and stuff but also for a whole lot of other things like vitamins and all OTC stuff and for some reason Amazon even let’s me use it for baby powder and baby wipes, I guess they are HSA approved. Can never have enough of that with a little one still in diapers.

The rolling over from year to year is a great feature.

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Originally posted by ZSMICHAEL:

quote:

No sir. An HSA can be used to pay for co-pays and other qualified medical expenses. I will use this to supplement my healthcare costs after I retire.

^^^^^^^^^^^^
Can you pay premiums with these funds? For most people there is very little healthcare expense with Medicare, unless you get a really cheap plan.

I believe you can?? Really not sure, but maybe covers a supplemental plan like AFLAC? The one thing I’m DETERMINED to avoid is a crappy quality of life in retirement because I didn’t plan for QUALITY healthcare.

Medicare does cost and it is means tested. {Another socialistic policy.} What is expensive is assisted living as Medicare only pays for 30 days after a stay in the hospital.

If you don't have an HSA eligible policy then you can't get an HSA.

No, you cannot pay premiums in the future with your HSA money.

You can use that money for copays, out of pocket, anything medical which isn't covered by your insurance. These days that can be a lot!

There is also a provision that if you are over age 65 you can withdraw the money for any use but you must pay income tax on it. HSA withdrawals become, in effect, like a traditional IRA account if you use it for non-qualified medical expenses.

But it is unlikely many people will have so much in their HSA that they don't eventually need it for medical expenses.

quote:

Originally posted by triggertreat:
You could open an individual account like this https://www.fidelity.com/go/hsa/why-hsa you can then transfer you current HSA balance to it and invest it as you see fit. Here is how you can contribute. https://www.fidelity.com/go/hsa/how-to-contribute

So let me ask, trigger...do you have to be enrolled in a qualifying healthcare plan to open a Fidelity HSA?? It doesn't appear that's the case, but I haven't read the fine print.

Thanks!!

ETA: It would appear one must be enrolled in a High Deductible Health Plan (HDHP) in order to be able to qualify for an HSA. According to the Schwab website I'm reading, an HDHP is defined as a healthcare plan having a deductible of $1,400 or more per year. The PPO healthcare package I currently have has a deductible of $2,000 per year, hence why I qualify for an HSA. If I were to go to the EPO plan I would not qualify, as the deductible is only $500 per year.

That wouldn't stop me, however, from investing in a low-risk portfolio for the sole purpose of saving for healthcare costs once I retire. Just gotta talk to some folks and see what they recommend...

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Originally posted by erj_pilot:

quote:

Originally posted by triggertreat:
You could open an individual account like this https://www.fidelity.com/go/hsa/why-hsa you can then transfer you current HSA balance to it and invest it as you see fit. Here is how you can contribute. https://www.fidelity.com/go/hsa/how-to-contribute

So let me ask, trigger...do you have to be enrolled in a qualifying healthcare plan to open a Fidelity HSA?? It doesn't appear that's the case, but I haven't read the fine print.

Thanks!!

Looks like you found your answer. You will just have to find the best for you. Also I think after 65 you can draw without taxes for any expense. I transfered my HSA and use it as part of my investment. portfolio.

I have a plan with an HSA, like it, and use it. I realize it can carry over to use in future years, even with that I don’t fund it as that much of a future investment. I just do a rough estimate on expected medical expenses, go with that.

If a little is left over to carry forward, fine. Yes, maybe I should be funding it to create a larger surplus. I normally go the 401k type savings for that.