My previous companies were having HSA option and I contributed max and kept investing. Now it has grown to $100K.
My current company don't have option for HSA which I felt it is bad initially but since the market going higher and so is my HSA account, I feel it is over allocated now.
My question is, in the future, can we pay health insurance premium through HSA ? I am trying to find way how can I use it before 65
HSA account reached to $100k today
byu/MoistImprovement6768 ininvesting
Posted by MoistImprovement6768
7 Comments
No, as I understand it, you can’t pay premiums with HSA. But you can withdraw from it later and pay taxes on it if you don’t use it for medical expenses.
Not premiums. If you have the extra cash, start paying for medical expenses with cash instead of HSA. Then save those receipts for decades, and reimburse yourself from the HSA to help pay for premiums.
>in the future can we pay health insurance premium through hsa?
You asking if anyone here knows the future? Why don’t need to use it before 65?
Hate to be the person. A Google search would have [answered your simple question](https://www.healthcare.gov/high-deductible-health-plan/hdhp-hsa-work-together/#:~:text=You%20generally%20can%E2%80%99t%20use%20Health%20Savings%20Account%20funds%20to%20pay%20premiums).
> You generally can’t use Health Savings Account funds to pay premiums.
The HSA can be used to for Medicare premiums (except Medigap).
You can also use it for long term care expenses, which all of us may have a good chance of experiencing for a period. Don’t know your age but seems like you are positioned to self insure yourself for LTC using your HSA instead of paying for an expensive policy.
Why are you looking to spend before 65?
Are you concerned the that after 65 the HSA can start behaving like a traditional IRA for non-qualified withdraws? You can still withdraw for medical expenses and receive the benefit of not having to pay income taxes. Another major plus is that the HSA isn’t subjected to RMD rules, unlike tIRAs.
not tax expert but I think HSA is so-called triple tax-advantaged, where you actually do not want to withdrawl it even for medical expenses, at least not until you deferred it.
There are strategies where you save up your medical receipts and claim only when you want to withdraw money
I have a better question. Why do you have $100k in an HSA?
Have you maxed 401(k) and IRAs? Are you making too much to contribute?
Your HSA money doesn’t just disappear. You can spend the money on a lot of things including some OTC items. If you don’t use it all before you die, then it can be passed on to a beneficiary, but that has different tax rules.
At age 65, the HSA turns into essentially a traditional IRA, and it can be used to pay Medicare premiums.
In other words, with the ever increasing cost of healthcare, there is no such thing as ‘over contributing.’