All those that I read revolve around the young W-2 employee. And remember, the entire time, you can grow your contributions through investments, just like any other retirement account.
Find out more. Take this in to consideration when open enrollment comes around this fall.
Your input will be much appreciated. Readers should always seek professional advice before entering into any commitments.
Share Tweet Email. Most HSA managers and employers do not explain that and may not even realize it themselves. Your employer will usually let you contribute a specified amount evenly across all pay periods. I have been maxing out every year since I started 2010 and I plan to increase my contribution in 2019 if I remember when that time comes.
More specifically, both the individual and family contribution maximums will increase from 2018 to 2019, which is great news for savers. However beginning in 2015, the amounts differ because the out-of-pocket maximums are increased based on changes in the average per capita premium for health insurance coverage in the United States.
In 2014, these out-of-pocket maximums are the same as the maximum out-of-pocket expense limits for self-only and family coverage for HSA-compatible HDHPs.
Your articles do not make clear as to which custodians allow such investment freedom as your articles only refer to W-2 employees who would basically take their chances with the stock market.
Brad - Financial Life Planning. I just retired and my medical insurance is Medicare.
Why pay for health care costs with after-tax dollars if you could pay with pre-tax dollars? In addition, all non-grandfathered group health plans are required to comply with cost-sharing limitations in regards to out-of-pocket maximums on essential health benefits. Does it mean that I have to purchase an additional insurance plan to satisfy the annual out-of-pocket expense maximum?
This means you have roughly an additional 3.
If you are able to contribute to an HSA pretax through an employer payroll deduction then by all means you should because it means extra tax savings in the form of payroll taxes.
I am 55 and he is 52. With that being said an HSA plan is great retirement savings vehicle and paying no income tax is better than the tax that you would have to pay with a traditional or roth retirement account. I want to invest in real estate.
It goes with you and can be used regardless of future employment status or health plan. You also say that one owns the account and can self-direct investments with it. Great question. Related Posts.