Early 20s with a Roth IRA, individual brokerage account , Roth 401k and high yield savings account . Was wondering if it would be worth it to open one a health savings account . Wanting to know where to open one and what places offer one that i should avoid . Or if I should wait until I’m older. I’m a business owner. Thanks in advance!
Start a health savings account in my early 20s ?
byu/Friendly_Giant04 ininvesting
Posted by Friendly_Giant04
8 Comments
I don’t know how the taxes work for business owners, but absolutely do it. It’s tax-advantaged money you will definitely use at some point and you can invest it.
I use Fidelity.
If it doesn’t go up 400% like every other investment under Trump, I would just buy indexes
Ditch the HYSA, Fidelity, SGOV. They do HSA also. You definitely should max it early. Sp500. Don’t overthink. Lower your taxes with pretax 401k. Find a trustworthy pro if you’re a business owner and make good money. Best of luck
I would absolutely open one and fund it to the maximum if possible annually, and move the funds to a Fidelity HSA account. Invest sensibly based on a long time horizon (ie US and International stock index funds), and let it grow, don’t spend it on near-term health care. Your future self will thank you – the HSA is one of the best tax advantaged investment vehicles available.
If you can afford to pay the vast majority of your medical expenses out of pocket then it can be a great move. Keep in mind that you can’t just choose to open a HSA — your health insurance must be a “consumer driven (high deductible) health plan” — a very specific type of insurance structure. You can buy HDHP’s on ACA exchanges or your employer may offer one. If your employer offers one, they may include a match to your HSA or seed money.
OP you may very well know all of this but I figure for others scrolling by who don’t really know about HSAs and HDHPs it might be helpful info 🙂
Absolutely open one. I’m also a business owner. Business pays for my health insurance. I do a distribution to me annd then fund the HSA.
If I am not mistaken, one has to be covered by a high deductible health plan to open an HSA. If you are, by all means, do it. It has the benefit of tax deductible contributions, non taxed withdrawals (if used for medical), and one can invest in a variety of funds.
Yes, it is worth it for the above the line tax deduction alone. I would not do it if I was experiencing serious health problems because typically they are attached to a bronze or silver health plan and then the deductible is pretty big.
Assuming you are healthy, do not spend the HSA money on medical bills. Just invest it. Spend it later when you are 80 on end of life care or something.