Posted: 3/21/2007 10:38:20 AM EDT
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I started a HSA (Health Savings Account) last year as part of my benefits. So, I have this Debit Card for it, and it's piling up money at a decent rate. As I understand it, I can use this for any kind of medical expense, including using it to buy NyQuil at Walgreens. But, As I also understand it, the money 'goes away' at the end of the year?! So....How can I get that money without buying a couple thousand bucks worth of NyQuil? I don't go to the doctor very often, and the whole point of it is for emergency expenses...I don't get it. So...advise on HSA. Should I quit it? Just start building a SHTF Vitamin Stockpile with it? Just go to the doctor every month? |
| with mine i put in a set amount, I did $2000 this year, and it comes out of my check every week. If i had a $2000 exspense on Jan. 1 I could use it all then even though I havent put that much in it yet. Whatever I dont use at the end of the year I do not get back I must spend all of it. |
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You are confusing a Health Savings Account with a Flexible Spending Account. The former is a savings account that is used in conjunction with a high-deductible health insurance plan. The latter is a spending account that can be used for health-related expenses that are not reimbursable by the former. It gets a little confusing when you have both. The HSA is supposed to be used to pay for copays and any out-of-pocket medical expenses. It CAN be used for stuff that an FSA is used for, BUT that won't count towards your deductible if you do use it that way. The FSA you must spend by the end of the allotted time, the HSA is a savings account that you can keep for life. |
+1 My HSA will carry over to the next year. There is a max you can put in it though. It depends on if you have family or single coverage. You can also use the money in a HSA plan for anything, but if you use it on non-medical related items you get penalized at the end of the year, kind of like using 401(k) money early. If you do in fact have a HSA you need read up on it. If you pay cash for a medical bill, keep the receipt and you can use your HSA card to buy whatever up the amount of the medical bill and not be penalized. You can use it on direct family medical expenses also, even if they are not covered under your HD medical plan. |
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+2 HSA's and flexible spending accounts differ in the rollover aspect. The HSA rolls over in perpetuity. It can be used for any "IRS deductible medical expense". Any money you put in it is tax deferred until spent on a deductible medical expense. If you spend it on something else, that specific amount becomes taxable when you reconcile the disbursements at tax time. In addition, HSa's are supposed to only be available to folks who have a high deductible on their health insurance. So don't make the mistake of spending it on other non-covered expenses, and then getting caught paying taxed dollars if you have to pay the deductible. Don't mean to lecture, but wouldn't want anyone to learnthe hard way. |
Ah, you got me there! I always bust people for the ATM Machine deal, and here I go and make a thread title with the very same mistake! LoL. So...since I'm the type that rarely goes to the doctor (I haven't been to a doctor in a decade or so) should I just discontinue this HSA? I mean, it's kind of irking me seeing that money just sitting there and not getting to use it. I suppose I could use it for dental work that my dental plan doesn't cover, like this root canal I should get. Guess I should email my HR person, see what the other options are. |
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As everyone else said, they don't just go away. It's a bank account with your money in it....kinda. Me being like I am, I like having one for Just-In-Case things. Mine is with a group that has it in a mutual fund, so its not just sitting around looking pretty. Its pretending to make money on itself. Too bad i got a uber safe fund...I think my max worth was about $15 up and my min worth was about $7 down for the past 4 months. |