👉 Another great thing about the HSA that was not covered: If you keep your receipts from medical expenses, you can get reimbursed from your HSA account at ***ANY TIME***. This means that if you have expenses now and keep your receipts, you can let your money grow in your account and then get reimbursed when you need cash. The IRS confirmed that there is no time limit, so you can withdraw it years from now if you need cash from the account.
@rng888 that's why the investment portion of this strategy is also important. You need to beat inflation and see a return. Plus the difference of after tax spending vs tax free spending.
Glad to see your video on my feed. I still watch a few other UA-camrs.. I've followed trades of a couple UA-camrs and I'm down so much…210k to 80k. It got addictive. My resolve is the lot are amateurs.
Before you make an investment decision, consult a fee only advisere, taking advice verbatim from youtube is like going to the intern to take lessons passed on from the professional.
I basically have Palantir, C3 ai, and Nvidia on my watch list, all of which have outperformed by over 57% in 1 year, is it still a good time to buy, or am I missing out?
Good question. I have been looking at other AI stocks like AMD, Broadcom and Marvell. i have $100,000 ready to put into the market now that it has shown bullish strength, but i am still skeptical.
@@AllenTatum-rs2nd When picking stocks, it's a good idea to have a mentor who has a feel for the sentiment and positioning of both institutional and individual investors. Cathie Wood is a good example.
It's always good to have a plan for your finances. But it seems like it's hard to do a good plan on your own, and this is when it's important to find a good mentor.
One additional hack with the HSA that I didn't hear about: max it out every year, and DON'T reimburse yourself when you have medical expenses. Pay your deductibles with your regular credit card (not your HSA credit card) which you pay off every month, and let the HSA investments grow. Save your invoice and mark it that you paid it with your regular credit card. This way you can grow your HSA as fast as you can, without withdrawing money. The investments can now grow tax free, and once your balance is $200k or $300k it will grow more by itself annually than what your out-of-pocket expenses and premiums are. This is the time to reimburse yourself tax-free of 10 or 20 years of receipts you kept. We are maxing out our HSA for several years. Try to do this as well as you only can contribute to it in your working years; you need earned income. Never take any money out of it until it starts growing faster than your maximum annual contribution limit and you'll have your medical costs covered for the rest of your life TAX FREE. I which I had started this in my 20's. Thanks Andrei for your video about HSA's as they are rarely being discussed, but in my mind it is a hidden tax gem that people don't understand completely.
@@randolphh8005 I looked it up and you are correct. Since earned income applies to a Roth IRA, I assumed this was the same for an HSA but this is not the case, my mistake. Thanks for pointing out this error, and I'm glad you liked my other suggestions!
You can also reimburse yourself anytime after a medical procedure if you pay for that procedure out of pocket. So medical receipts are like tax-free Ious to yourself.
Please do! I like it more than my Roth IRA, which is saying something. It has automatic contributions like 401k, can manage investments like IRA, but has more perks than both as Andrei described. If you’re paid biweekly, expect $148 less pretax income per paycheck ($3850 / 26). You can also lump sum and you can change contribution rate at any time! No permanent commitment. *note: the first $1000 has to be liquid cash. Can’t invest it. So if you’ve contributed $3850, only $2850 can be invested. If you’ve contributed 7700, only 6700 can be invested.
Just opened new HSA with Fidelity last week. In my opinion this currently is the best HSA provider available right now. My employer uses HealthEquity and they charge management fees on your investments along with money held in cash pays a pathetic interest rate on a tiered system currently ranging from 0.05 - 0.40% so feels like I'm losing money to inflation and fees instead of gaining anything with this account. Which is why I was happy to learn I could open a new account with Fidelity and transfer some of the money from HealthEquity. Because the money just changes HSA providers there is no tax implications to worry about and now I can have some better investment options and still get my employer contributions that I'll just transfer over each year to Fidelity
I first saw your video in theory11 when I wanted to learn card sleight of hand (the reason why I bought a bicycle centurions card). Now, I am learning about investment and it's you again. 😂 No wonder I appreciate your videos very much.
@@AndreiJikh you've come a long way bud! Cheers! 🥂Seriously to have amassed what you currently have and showing others how to get there, is a blessing for all parties involved. We truly appreciate you.
I have an HSA but won't use a dime of it. I save my receipts, physical and digital, a spreadsheet that manages the details, and when I go to retire (lol that's funny), I'm going to cash in on that receipt money. This way, the money in the HSA will grow because of compound interest so I should have more when I go to retire.
the reimbursement loophole part is HUGE and was hoping to see you cover it. Kind of disappointing to not see you cover it especially when you have covered most of whats in this video in various other videos.
Yes! I was going to comment on this also. An HSA basically becomes a tax free savings account if you pay out of pocket for qualified expenses, just file away your receipts. You can take the reimbursement years into the future and allow that money to grow and compound over time. My ultimate goal with the HSA is to grow a huge cash flow stream and eventually cover any expenses i incur with the house's money.
@@johnsmith-wt5dzPerfect answer. I wish it had been covered in the video. A lot of the power of the HSA is lost if people are using it each year for medical and not allowing it to compound.
As a family we have $2000-$4000 of yearly medical/dental expenses, I use the HSA money to get reimbursement not as much investing, it means that money is a true $1 not a dollar = .76 like my other take home pay. Just have to scan receipts, but I also get cc rewards on my medical purchases so it's extra money on top.
Instead of spending the money, if you can, pay out-of-pocket. Keep your receipts. Allow your money to keep growing and compounding. If you use it, you lose some of the power of this account.
Hey Andrei , so im starting to try and learn more about finance and economy as I’m of to college , is any of this applicable to europe ? Because in my country healthcare is free ?
i go for roth because if you hit a nice investment that 100x you can pull out that amount tax free when you retire or use it as a emergency as in a roth ira you can take out whatever you put in without penalty. (The cost basis)
HSA > Roth HSA goes in pretax, Roth goes in after-tax. No tax benefit upfront. Both come out tax-free. Roth only gives you the tax benefit at the backend. HSA gives you a tax benefit upfront and at the backend. You get to eat your cake and have it too.
Something to note… some educational school districts contribute to HSA for all employees not just those who have high deductible plans. This might be similar for some other employers too.
Would your investment suggestions be different at different amounts available to invest? Like if I had $1000 where would you put it? $5k $10k $100k I think that would make a good series.
If you're a firefighter or police officer you can put money in a 457 account before tax. When you retire you can take about $3,000 a year out tax free to pay for medical insurance. Just a little loophole that firefighters and police officers might not be aware of.
Andrei! Love your videos as always!! So helpful. Definitely focusing on building HSA. Can you create a video to show us your watch collection?? I've been noticing new watches :)
Not everyone qualifies for an HSA. Only those with health insurance deductibles that qualify will be allowed to use an HSA. Those with low deductibles usually have better insurance or like mine, also gives free money in a health spending account.
Hi Andrei I think that it is important to mention that not all HDHP qualifies for an HSA-account, there are specific deductibles and out-of-pocket maximum that has to be met. Also HSA brokerage will not know if your HDHP is indeed qualifies for it, such as when I talked to a Fidelity associate and they said that when you apply for the HSA-account, they have the impression that you already know the requirements.
He also did not mention that if you save all of your medical receipts, you can take out from the HSA at any time tax free. So if you over the years spent $50,000 you’re able to take any of those receipts as long as you save them Toward you taking out $50,000 at any given point in time tax free the key is ensuring that you keep all of your previous medical receipts
I got a new job this year making almost 50% more than ever before. When it came time for insurance i opted for the hsa act thankfully. Now i just need to add to the amt i put in every check!
I use an HSA, through my employer's payroll company, for 'medical', yet am required to use all funds by 3rd month of following year ....or lose that 'fund balance' if not used , prior to the 'new' contribution year starting. Is this due to the payroll company vs IRS; loss of unused funds?
What you are describing is a healthcare FSA or flexible spending account. You do not have to have a high deductible health plan in order to have an FSA. FSA money is use it or lose it while HSA money is yours forever.
There might not be a big audience for this, I'd like a video on the difference between SEP IRA and solo 401k, and as a small business owner without employees which you would choose. You must use one of these, right?
I've maxed out my HSA this year and have invested all of it. Not touching it for a few decades. Just wish I could use the funds for anything, not just healthcare spending. That's the only "downside" (though a very minor one) IMHO.
Just pay out of pocket for qualified expenses and save the receipts, you can reimburse yourself at any time. . For example: I pay out of pocket for my contacts and save the receipts. If 10 years down the road I need X amount of dollars to cover an unforeseen expense I can take a tax free reimbursement from a qualified expense I have filed away over the years. If you let your investments grow long enough you will have an unlimited stream of tax free money to cover your medical expenses.
Great content as usual! I have a HSA but my money is not invested in anything. I'm a little confused. If I invest that money in a mutual fund, can I pull money out of that mutual fund if needed for a medical bill?
Once you set up an investment account, you should be able to make transfers between your HSA and investment accounts. Although I've never pulled money out of the investment account, I've seen the option to do so.
Actual customer service rep for an HSA administrator here. YES! It's just transferring funds within your account. No capital gains, unless your state has stuff for you to fill out for that. (i.e.: California) Admittedly though, it may be a safe bet to at least keep something in there.
The best way to use an HSA account is not to use it. If you can, pay for all medical bills out of pocket and allow the earnings to compound. Keep your receipts and then, if you ever need to withdraw for an emergency, you have the medical receipts to back up the withdrawal as a medical expense, even if it is years later.
Most employers do not have a way for you to invest the HSA funds. You do not need to contribute through your employer. You can open a Fidelity account online as long as you do not exceed the contribution limits and you are positive you have a high deductible health plan - it needs to be classified specifically as an HDHP. if you have your HSA in an account like Fidelity, then you will be able to invest it. The trick is to not use it, save your medical receipts that you pay out-of-pocket, and let the earnings compound.
You made a comment. To make sure that your contribution plus your employer’s contribution doesn’t push you over the threshold. Is that the same for the 401k ($22.5k)? I thought you, the employee, could contribute $22.5k and that the employer contribution didn’t count towards that total.
HSA is the absolute best retirement vehicle for consumers, and AFAIK it's the only thing that allows you to invalidate the "truth" saying about Death & Taxes because it can save your life 100% free of taxes.
I am an accountant and was explaining to a client about HSA being the best retirement vehicle out there and my boss thought I grew three heads calling it a retirement account until I explained how to use it
I also saw that UMB is lower on your list. Are you able to use another company for your HSA if your current company uses a specific company? Looks like UMB charges.
Yes you can open up another HSA with someone else like Fidelity for example and if your employer were to use HealthEquity as an example you can then request to transfer some of the money from HealthEquity to Fidelity and keep both accounts open. Then you can still contribute through your employer but take advantage of different investment options or better interest rates that you might not have with the option your employer picked. You just want to make sure you don't request to move all of the money and that you specify that it is just to transfer between HSA providers.
@@notxasj That's great to know thank you. Ya I'm currently investing with my current HSA but it's so limited. And from seeing Andrew's list apparently I'm getting charged more than other companies. It's nice to see that Fidelity is on the cheaper side since my 401k is there. I'll have to look into that. Thanks again!
He is saying that you should always contribute at least up to whatever the company match is. Then start looking into the HSA. Then if you still have money left over, use that to contribute more to your 401(k) or an IRA
Did you come across any information regarding Veterans that are covered by the VA when it comes to medical insurance? I can't seem to find a straight forward answer relating to veterans and HSA accounts.
Every answer I’ve found on the internet on that topic says your ability to have an HSA depends on what type of medical services you receive through the VA. I’m sure a benefits coordinator at a local VA would have reliable information. I’m currently active duty military and I don’t qualify for an HSA.
The only people who qualify for HSA are those with a high deductible health plan. It actually has to be labeled as an HDHP to qualify for you to have an HSA. if you do not have a deductible as a veteran, then I doubt you have a plan that qualifies.
I work for a company that offers a great low deductable health plan and an HDHP/HSA but I want to have kids in about 5-7 years, is it still a good idea to do an HSA over the low deductable?
No, when you have a kid, the deductibles will eat you for sure. On an HDHP you are gambling you won’t use it. You can change yearly so just plan accordingly
We have the same dilemma. I want to take advantage of an HSA but having two young kids that requires frequent docotr visits, ,I believe we are better off with the value plan that the employer is offering. Maybe when the kids gets a little older and doesn't require that much visits.
I usually advise it for my clients before children, after children, or in situations where they are fortunate enough to have enough income to pay out of pocket, even with kids
Come for the magic and stay always stay for the wisdom and insight. Now to make acutal real money to start paving the way to investing for real.. until then i will bank some knowledge along the way!
Good day ladies n gents. Quick question to any retired military veteran or those knowing the answer, is it true we don't rate an HSA because of our TRICARE/VA Medical Benefit?
I've looked into HSA for a while. I would really like to be able to contribute to one when uninsured. Where I live there are no High Deductible plans offered, which is both good and bad. Everything out there points to not being to contribute when uninsured, weird to have it be gatekept.
👉 Another great thing about the HSA that was not covered: If you keep your receipts from medical expenses, you can get reimbursed from your HSA account at ***ANY TIME***. This means that if you have expenses now and keep your receipts, you can let your money grow in your account and then get reimbursed when you need cash. The IRS confirmed that there is no time limit, so you can withdraw it years from now if you need cash from the account.
A dollar today is worth less than a dollar though in the future due to inflation
A compounded dollar over time is worth more than a dollar
@rng888 that's why the investment portion of this strategy is also important. You need to beat inflation and see a return. Plus the difference of after tax spending vs tax free spending.
😂 “If you didn’t like this video - my name is Graham Stephan.”
You are an amazing educator and entertainer Andrei!
Finally a clear cut way to digest this HSA topic. Thanks Graham!
This is Graham’s magician cousin
Not Graham it's Jeremy
hahaha
i though this was meetkevin
Lol not Graham!😂
Glad to see your video on my feed. I still watch a few other UA-camrs.. I've followed trades of a couple UA-camrs and I'm down so much…210k to 80k. It got addictive. My resolve is the lot are amateurs.
You are not investing, man. Sorry. You are gambling.
Before you make an investment decision, consult a fee only advisere, taking advice verbatim from youtube is like going to the intern to take lessons passed on from the professional.
@@simone_maya how can one get a fee-only planner?
_Loren Lena Walker_
She is a fee only, I won’t want to blow my horn but well over 60% in the past year despite economic conditions is commendable isn’t it?
I basically have Palantir, C3 ai, and Nvidia on my watch list, all of which have outperformed by over 57% in 1 year, is it still a good time to buy, or am I missing out?
Good question. I have been looking at other AI stocks like AMD, Broadcom and Marvell. i have $100,000 ready to put into the market now that it has shown bullish strength, but i am still skeptical.
@@AllenTatum-rs2nd When picking stocks, it's a good idea to have a mentor who has a feel for the sentiment and positioning of both institutional and individual investors. Cathie Wood is a good example.
It's always good to have a plan for your finances. But it seems like it's hard to do a good plan on your own, and this is when it's important to find a good mentor.
@@Martin-Combs123 How has that worked out for you so far?
@@JoStewart-pr9kb I have also traded with Dan Price for some time. He is very insightful and understanding. He is also a patient teacher 👍
Wow, I’m more impressed with the magic than the actual content😂
I'm only here for the magic🎩
That works for me :D
😂😂😂
@AndreiJikh correction. 2023 HSA max for family is 7750 not 8750
Yeah, I wish my curiosity didn't ruin the magic trick >.>
Get well soon legend
One additional hack with the HSA that I didn't hear about: max it out every year, and DON'T reimburse yourself when you have medical expenses. Pay your deductibles with your regular credit card (not your HSA credit card) which you pay off every month, and let the HSA investments grow. Save your invoice and mark it that you paid it with your regular credit card.
This way you can grow your HSA as fast as you can, without withdrawing money. The investments can now grow tax free, and once your balance is $200k or $300k it will grow more by itself annually than what your out-of-pocket expenses and premiums are. This is the time to reimburse yourself tax-free of 10 or 20 years of receipts you kept.
We are maxing out our HSA for several years. Try to do this as well as you only can contribute to it in your working years; you need earned income. Never take any money out of it until it starts growing faster than your maximum annual contribution limit and you'll have your medical costs covered for the rest of your life TAX FREE. I which I had started this in my 20's.
Thanks Andrei for your video about HSA's as they are rarely being discussed, but in my mind it is a hidden tax gem that people don't understand completely.
You do not need earned income to contribute! The rest of your suggestions are great
@@randolphh8005 I looked it up and you are correct. Since earned income applies to a Roth IRA, I assumed this was the same for an HSA but this is not the case, my mistake. Thanks for pointing out this error, and I'm glad you liked my other suggestions!
Best thread on here. Great job!
More great advice, Graham. Keep it up bud.
Get that HSA! I call it my 'secret weapon' for investing. Great video Andrei.
You can also reimburse yourself anytime after a medical procedure if you pay for that procedure out of pocket. So medical receipts are like tax-free Ious to yourself.
I need to hop on this ASAP. Thanks!
Yessss!
Please do! I like it more than my Roth IRA, which is saying something. It has automatic contributions like 401k, can manage investments like IRA, but has more perks than both as Andrei described.
If you’re paid biweekly, expect $148 less pretax income per paycheck ($3850 / 26). You can also lump sum and you can change contribution rate at any time! No permanent commitment.
*note: the first $1000 has to be liquid cash. Can’t invest it. So if you’ve contributed $3850, only $2850 can be invested. If you’ve contributed 7700, only 6700 can be invested.
Just opened new HSA with Fidelity last week. In my opinion this currently is the best HSA provider available right now. My employer uses HealthEquity and they charge management fees on your investments along with money held in cash pays a pathetic interest rate on a tiered system currently ranging from 0.05 - 0.40% so feels like I'm losing money to inflation and fees instead of gaining anything with this account.
Which is why I was happy to learn I could open a new account with Fidelity and transfer some of the money from HealthEquity. Because the money just changes HSA providers there is no tax implications to worry about and now I can have some better investment options and still get my employer contributions that I'll just transfer over each year to Fidelity
But how exactly do I invest it with what platform or do they dictate what brokerage firm we can invest with
I finally got an HSA and really glad I got it. May need to do a video on my channel like you in the future. Great video as usual!
Right on!
I first saw your video in theory11 when I wanted to learn card sleight of hand (the reason why I bought a bicycle centurions card). Now, I am learning about investment and it's you again. 😂 No wonder I appreciate your videos very much.
Very cool! That's such a crazy thing to think about for me
@@AndreiJikh you've come a long way bud! Cheers! 🥂Seriously to have amassed what you currently have and showing others how to get there, is a blessing for all parties involved. We truly appreciate you.
Andrei is like that japanese company that makes pianos and motorcycles! (Yamaha)
Thanks Graham!
My pleasure! :P
I have an HSA but won't use a dime of it. I save my receipts, physical and digital, a spreadsheet that manages the details, and when I go to retire (lol that's funny), I'm going to cash in on that receipt money. This way, the money in the HSA will grow because of compound interest so I should have more when I go to retire.
What is your HSA invested in?
@@CoCoRaEl VFIFX (35%), VMIAX (15%), VIIIX (35%), VVIAX (15%). All are up 9.24% or more
I love my HSA account! It’s the best!
The fancy watch, magic tricks, and the stretchy eye movements, this dude is a baller.
You create some of the best UA-cam videos out there! I can't believe CNBC hasn't offered you a show yet...
Dang I'll take that as a compliment, thank you!
Andrei Jikh the magician 😮
:D
the reimbursement loophole part is HUGE and was hoping to see you cover it. Kind of disappointing to not see you cover it especially when you have covered most of whats in this video in various other videos.
Yes! I was going to comment on this also. An HSA basically becomes a tax free savings account if you pay out of pocket for qualified expenses, just file away your receipts. You can take the reimbursement years into the future and allow that money to grow and compound over time. My ultimate goal with the HSA is to grow a huge cash flow stream and eventually cover any expenses i incur with the house's money.
@@johnsmith-wt5dzPerfect answer. I wish it had been covered in the video. A lot of the power of the HSA is lost if people are using it each year for medical and not allowing it to compound.
Literally the best educator! Thank you!
Happy to help!
As a family we have $2000-$4000 of yearly medical/dental expenses, I use the HSA money to get reimbursement not as much investing, it means that money is a true $1 not a dollar = .76 like my other take home pay. Just have to scan receipts, but I also get cc rewards on my medical purchases so it's extra money on top.
Instead of spending the money, if you can, pay out-of-pocket. Keep your receipts. Allow your money to keep growing and compounding. If you use it, you lose some of the power of this account.
Hey Andrei , so im starting to try and learn more about finance and economy as I’m of to college , is any of this applicable to europe ? Because in my country healthcare is free ?
Can you update on the Autopilot stock investment experiment you did? Did you end up getting a ROI on your $1000 investment?
I'll have to do an update!
This was an amazing video! Best content I've seen in a minute. Thanks for all your hard work and knowledge shared!
Glad you enjoyed it!
HSA over Roth? I would have thought they'd be swapped.
What about priority if it's a Roth 401(k)?
It's an interesting debate in the finance space, some say to go for Roth, but a lot of people prefer the HSA
i go for roth because if you hit a nice investment that 100x you can pull out that amount tax free when you retire or use it as a emergency as in a roth ira you can take out whatever you put in without penalty. (The cost basis)
HSA > Roth
HSA goes in pretax, Roth goes in after-tax. No tax benefit upfront.
Both come out tax-free.
Roth only gives you the tax benefit at the backend. HSA gives you a tax benefit upfront and at the backend. You get to eat your cake and have it too.
Great info and even better ending 😂 Great stuff as always Andrei 🙏
Thank you 🙌
I think this information will help our small town with payroll costs thank you Andrei
You are a divine human being Andrei Jikh
lol you're too kind!
And a IUL...? Is that a better alternative?
Something to note… some educational school districts contribute to HSA for all employees not just those who have high deductible plans. This might be similar for some other employers too.
Would your investment suggestions be different at different amounts available to invest? Like if I had $1000 where would you put it? $5k $10k $100k I think that would make a good series.
If you're a firefighter or police officer you can put money in a 457 account before tax. When you retire you can take about $3,000 a year out tax free to pay for medical insurance. Just a little loophole that firefighters and police officers might not be aware of.
Oh that's super helpful, thank you!
What about small and mid cap or reits in addition to the s&p 500? 🤔
I think I’ll take both the IRA and the HSA and the 401K.
There we go!
I didn't understand anything about this topic but I really liked the magic
There you go!
@@AndreiJikhI have been enjoying your videos for couple years now never missed a single video ❤
Andrei! Love your videos as always!! So helpful. Definitely focusing on building HSA. Can you create a video to show us your watch collection?? I've been noticing new watches :)
Not everyone qualifies for an HSA. Only those with health insurance deductibles that qualify will be allowed to use an HSA. Those with low deductibles usually have better insurance or like mine, also gives free money in a health spending account.
I need those magic coins pretty rad
@Whats_App740 oh you arent the organizer or creator of this channel
You see AMC move almost 100% afterhours from the court settlement being denied?
Yep, pretty crazy
So is this only used for as capital reserve for medical expenses?
I love this type of videos, stuff I didn't know but now I know . Thanks buddy
Andre is like the mcdonalds of investment advice.
I'm lovin' it
So is it good or bad lol
and Bitcoin is the Grimace Shake
Soooo, was that a compliment or a burn?😅
@@ypey1 He's not as in depth as other youtubers.
Hi Andrei I think that it is important to mention that not all HDHP qualifies for an HSA-account, there are specific deductibles and out-of-pocket maximum that has to be met. Also HSA brokerage will not know if your HDHP is indeed qualifies for it, such as when I talked to a Fidelity associate and they said that when you apply for the HSA-account, they have the impression that you already know the requirements.
He also did not mention that if you save all of your medical receipts, you can take out from the HSA at any time tax free. So if you over the years spent $50,000 you’re able to take any of those receipts as long as you save them Toward you taking out $50,000 at any given point in time tax free the key is ensuring that you keep all of your previous medical receipts
Such great info! Thanks Andrei!!
I always check out your videos when I get a chance. It’s like they show up automagically. But I’m curious if you’ll ever make one on life insurance 🤔
Thanks! Another quality video, Graham!
Good topic!. I'm interested in hearing how HSA funds can be invested in an S&P fund.
I got a new job this year making almost 50% more than ever before. When it came time for insurance i opted for the hsa act thankfully. Now i just need to add to the amt i put in every check!
I use an HSA, through my employer's payroll company, for 'medical', yet am required to use all funds by 3rd month of following year ....or lose that 'fund balance' if not used , prior to the 'new' contribution year starting. Is this due to the payroll company vs IRS; loss of unused funds?
Something is wrong with your description. Either you have a FSA or something else. It is not an HSA
What you are describing is a healthcare FSA or flexible spending account. You do not have to have a high deductible health plan in order to have an FSA. FSA money is use it or lose it while HSA money is yours forever.
What is the reason for maxing out a Roth IRA before the 401k?
A million arguments on this one. My take is max out 401k if in high tax bracket and Roth in low bracket.
There might not be a big audience for this, I'd like a video on the difference between SEP IRA and solo 401k, and as a small business owner without employees which you would choose. You must use one of these, right?
Yessss, I have the Mega Backdoor Roth, which uses a Solo 401k
This video is valuable - so i subscribed !!!!
How does this work for self employed/business owner?
Same, just need to get the right insurance and set up the HSA, pretty easy
I've maxed out my HSA this year and have invested all of it. Not touching it for a few decades. Just wish I could use the funds for anything, not just healthcare spending. That's the only "downside" (though a very minor one) IMHO.
Just pay out of pocket for qualified expenses and save the receipts, you can reimburse yourself at any time. . For example: I pay out of pocket for my contacts and save the receipts. If 10 years down the road I need X amount of dollars to cover an unforeseen expense I can take a tax free reimbursement from a qualified expense I have filed away over the years. If you let your investments grow long enough you will have an unlimited stream of tax free money to cover your medical expenses.
Great content as usual! I have a HSA but my money is not invested in anything. I'm a little confused. If I invest that money in a mutual fund, can I pull money out of that mutual fund if needed for a medical bill?
Once you set up an investment account, you should be able to make transfers between your HSA and investment accounts. Although I've never pulled money out of the investment account, I've seen the option to do so.
Actual customer service rep for an HSA administrator here.
YES! It's just transferring funds within your account. No capital gains, unless your state has stuff for you to fill out for that. (i.e.: California)
Admittedly though, it may be a safe bet to at least keep something in there.
What most people do is transfer the bulk to an investment account, and keep a small amount in the administrative account.
The best way to use an HSA account is not to use it. If you can, pay for all medical bills out of pocket and allow the earnings to compound. Keep your receipts and then, if you ever need to withdraw for an emergency, you have the medical receipts to back up the withdrawal as a medical expense, even if it is years later.
Love the "if not, I'm Graham Stephen" comment 😂😂😂
Started to follow you recently and didnt regret yet! Great video !
hi Graham!
I am just starting with my Job, any advice on mutual funds that I should put my HSA money in.
Most employers do not have a way for you to invest the HSA funds. You do not need to contribute through your employer. You can open a Fidelity account online as long as you do not exceed the contribution limits and you are positive you have a high deductible health plan - it needs to be classified specifically as an HDHP. if you have your HSA in an account like Fidelity, then you will be able to invest it. The trick is to not use it, save your medical receipts that you pay out-of-pocket, and let the earnings compound.
You made a comment. To make sure that your contribution plus your employer’s contribution doesn’t push you over the threshold. Is that the same for the 401k ($22.5k)? I thought you, the employee, could contribute $22.5k and that the employer contribution didn’t count towards that total.
HSA is the absolute best retirement vehicle for consumers, and AFAIK it's the only thing that allows you to invalidate the "truth" saying about Death & Taxes because it can save your life 100% free of taxes.
I am an accountant and was explaining to a client about HSA being the best retirement vehicle out there and my boss thought I grew three heads calling it a retirement account until I explained how to use it
Absolute financial goat 💪🏼
I also saw that UMB is lower on your list. Are you able to use another company for your HSA if your current company uses a specific company? Looks like UMB charges.
Yes you can open up another HSA with someone else like Fidelity for example and if your employer were to use HealthEquity as an example you can then request to transfer some of the money from HealthEquity to Fidelity and keep both accounts open. Then you can still contribute through your employer but take advantage of different investment options or better interest rates that you might not have with the option your employer picked. You just want to make sure you don't request to move all of the money and that you specify that it is just to transfer between HSA providers.
@@notxasj That's great to know thank you. Ya I'm currently investing with my current HSA but it's so limited. And from seeing Andrew's list apparently I'm getting charged more than other companies. It's nice to see that Fidelity is on the cheaper side since my 401k is there. I'll have to look into that. Thanks again!
Great video Andrei. I will be 45 next year and haven't had an HSA until now. Is it too late or can I still do an HSA?
Never too late!
@@AndreiJikh thank you!!
You can contribute to them until age 65, working or not.
@@AndreiJikh never too late is a bit inaccurate. I appreciate your enthusiasm, but once people are on Medicare it is definitely too late.
Thank you for this video. I have had an HSA for awhile but I didn't fully understand how to use it to its full advantage.
Glad it was helpful!
Confused. How can I stop contributing to 401K Match when in order to get the match I have to contirbute to my 401K?
He is saying that you should always contribute at least up to whatever the company match is. Then start looking into the HSA. Then if you still have money left over, use that to contribute more to your 401(k) or an IRA
Did you come across any information regarding Veterans that are covered by the VA when it comes to medical insurance? I can't seem to find a straight forward answer relating to veterans and HSA accounts.
Every answer I’ve found on the internet on that topic says your ability to have an HSA depends on what type of medical services you receive through the VA. I’m sure a benefits coordinator at a local VA would have reliable information. I’m currently active duty military and I don’t qualify for an HSA.
The only people who qualify for HSA are those with a high deductible health plan. It actually has to be labeled as an HDHP to qualify for you to have an HSA.
if you do not have a deductible as a veteran, then I doubt you have a plan that qualifies.
@@elizabethbaldwin7307 thank you for the information.
I would check that in Holland
great video Andrei, thanks
i had one then had to upgrade my insurance plan so now im no longer eligible to have one
My job offers it, I just don’t know the full benefits
Ask them. The benefits department is usually required to explain or assist you in signing up.
Definitely ask! Never hurts, and they may offer some sort of matching as well
@@JJunkAFunkyup, I agree with you.
Can a retired military guy get this ? Tks for sharing.
I work for a company that offers a great low deductable health plan and an HDHP/HSA but I want to have kids in about 5-7 years, is it still a good idea to do an HSA over the low deductable?
No, when you have a kid, the deductibles will eat you for sure. On an HDHP you are gambling you won’t use it. You can change yearly so just plan accordingly
We have the same dilemma. I want to take advantage of an HSA but having two young kids that requires frequent docotr visits, ,I believe we are better off with the value plan that the employer is offering. Maybe when the kids gets a little older and doesn't require that much visits.
I usually advise it for my clients before children, after children, or in situations where they are fortunate enough to have enough income to pay out of pocket, even with kids
Hey Andre how about a cash value life insurance policy like a whole life policy there is a lot of tax advantages
These types of videos were the reason I subscribe tbh and I’m glad to see some magic again I was scared you were gunna stop 😅
love the fact that the magic tricks have made a come back tho!!
Hey Andrei, would this still be good for military memebers who stay in 20+ years and have medical paid for?
You have to pay for a qualified health plan, which wouldn’t happen if you have other ins.
This doesn’t go with Canadians does it?
What protects an HSA vs what happened with companies that took away people’s pension?
Good question.
Brilliant. Really terrific overview and rationale for HSA. You’re changing lives with your work! Thank you!
Much appreciated!
Dope
How can you create an HSA when you don't meet any of the requirements? When you have medical coverage and no high deductible, you don't qualify.
cant wait!
Bahahaha ending was classic!!
haha thank you
Your a magician and a comedian. Good combination! No wonder your a success.
Come for the magic and stay always stay for the wisdom and insight.
Now to make acutal real money to start paving the way to investing for real.. until then i will bank some knowledge along the way!
This is the support advice every
Love the Dragonball analogy!!😊
Good day ladies n gents. Quick question to any retired military veteran or those knowing the answer, is it true we don't rate an HSA because of our TRICARE/VA Medical Benefit?
what happens if youre no longer on a hdhp anymore? can you still contribute if you're on a different health plan after the account is already created?
No, you can not if you no longer had HDHP. In only to contribute to HSA, you would need to be enroll in HDHP.
No state income tax *except* in California and New Jersey, which are too greedy to even respect HSA exemptions...
What about people who are not eligible
Your content is amazing and the magic tricks are even better, don’t ever stop
Can you do a video update about Voyager and the current status of that whole situation? A lot of people had their money tied up in that exchange.
Nice watch
Thank you!
That was hilarious when you said you were Graham if we didn't like the video 😂😂😂
I've looked into HSA for a while. I would really like to be able to contribute to one when uninsured. Where I live there are no High Deductible plans offered, which is both good and bad. Everything out there points to not being to contribute when uninsured, weird to have it be gatekept.
That's a good point, not sure why being insured is a requirement. You'd think anyone should be able to participate
@@AndreiJikh Can I setup an HSA account if I am a dependent on my wife's health care coverage thru her job?
@@andybarillas9244if she is in HDHP plan.