What Is An HSA And How Does It Work? | Money Unscripted | Fidelity Investments

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  • Опубліковано 27 лис 2024

КОМЕНТАРІ • 39

  • @TeddyAlexanderv6
    @TeddyAlexanderv6 20 днів тому +1

    Tax laws can be so complex, and it’s super helpful to break them down like this. Understanding how different policies can impact our finances is crucial for making informed decisions.

    • @AgnesHarperq3x
      @AgnesHarperq3x 20 днів тому

      Making profitable investments during this time of political change can be risky without that insight. For me, working with an adviser is the best first step to navigate these complexities and make informed choices.

    • @GraceOliviaf7y
      @GraceOliviaf7y 20 днів тому

      I think having an investment advisor is the way to go. I've been with one because I lack the expertise for the market. I made over $490K during the recent dip, highlighting that there's more to the market than we average folks know.

    • @GraceOliviaf7y
      @GraceOliviaf7y 20 днів тому

      Nicole Anastasia Plumlee can't divulge much. Most likely, the internet should have her basic info, you can research if you like.

  • @umeshpaudyal1472
    @umeshpaudyal1472 4 місяці тому +6

    Thank you guys appreciate it . Great information, keep on Spreading this beautiful knowledge ❤

    • @fidelityinvestments
      @fidelityinvestments  4 місяці тому

      Thanks for commenting, Umesh! We're glad you're enjoying our content here on UA-cam. If you have any questions, please don't hesitate to ask. Have a great day!

  • @Retiredmco
    @Retiredmco 4 місяці тому +7

    Great advice!! I have my HSA with Fidelity in the semi conductor fund and S &P 500. I'm just plowing the max in every year. Won't start using funds from it for at least 15 years.

  • @MrsPamB
    @MrsPamB 4 місяці тому +1

    Thanks so much for this video, I wasn’t aware that you should leave some of your HSA in cash! I have all it invested except for my most recent contribution. That would have been embarrassing at my doctors appointment next week when I tried to copay with my debit card 😮

  • @julielittle2017
    @julielittle2017 Місяць тому +1

    So helpful!

  • @rickytamir4907
    @rickytamir4907 Місяць тому

    Fantastic video. Thank you so much.

  • @Rachel-ul8et
    @Rachel-ul8et 3 місяці тому +1

    Really great video

    • @fidelityinvestments
      @fidelityinvestments  3 місяці тому +1

      Thanks for reaching out! You can learn more at the link below using our screening tool.
      Finding health insurance before Medicare: digital.fidelity.com/stgw/digital/planning/retirement/retirement-decision-guide/pre-medicare/
      You can also check out our website's "Learn" section for more.
      How to choose health insurance in 4 steps: www.fidelity.com/learning-center/smart-money/how-to-choose-the-best-health-insurance-for-you
      Feel free to let us know if you have any other questions. We're here to help!

  • @larryjphotosjanssen8532
    @larryjphotosjanssen8532 4 місяці тому

    Contributing to an HSA affects your SS benefits later since you do not pay SS tax on it and your employer also doesn't match your contributions. Correct? Curious how much it changes your benefit?

  • @ladycoder2095
    @ladycoder2095 4 місяці тому

    Will fidelity HSA accept electronic receipts when filing for reimbursement many years later? In case we don't have a hard copy of the original receipt? Thanks.

    • @fidelityinvestments
      @fidelityinvestments  4 місяці тому

      Thanks for reaching out! We're happy to clarify.
      Fidelity does not monitor the reason for any given Health Savings Account (HSA) distribution (and distributions are not coded "qualified" or "non-qualified"); rather, you are responsible for tracking contributions and distributions whether for Qualified Medical Expenses (QMEs) or otherwise.
      For any QME distributions, it will be important for you to retain medical receipts and track the expenses you pay. You can read more on our HSA spending page, linked below:
      Spending with your HSA: www.fidelity.com/go/hsa/how-to-spend
      Please let us know if you have any additional questions!

  • @daphneefleurant4335
    @daphneefleurant4335 24 дні тому

    I am a veteran and plan to retire in Panamá City, Panamá. Can I still use my HSA to pay for medical expenses overseas? Panamá has VA hospital and also top notch medical services.

    • @fidelityinvestments
      @fidelityinvestments  24 дні тому

      Congratulations on your upcoming retirement !
      Fidelity policy prohibits individuals who reside outside of the United States from continuing to make contributions to an HSA, so these accounts are blocked from additional deposits. However, you may continue to withdraw funds from the HSA. Distributions can be taken at any time, tax and penalty-free if the distribution is for Qualified Medical Expenses (QMEs). If you want to learn more about how HSAs work or have questions regarding QMEs, please reference the links below.
      Learn more about QMEs: www.fidelity.com/go/hsa/how-to-spend
      HSA FAQs: www.fidelity.com/go/hsa/faqs
      Please feel free to follow up with any additional questions!

  • @bradhaughton6698
    @bradhaughton6698 Місяць тому

    What if the person has medicaid? Can they still open this type of account? I mean, low income individuals or families tend to spend more on medical.

    • @fidelityinvestments
      @fidelityinvestments  Місяць тому

      Hello, thanks for your engagement!
      While anyone can open an HSA, the rules around eligibility are mainly concerned with whether you're eligible to contribute for a given year. This means you can open an HSA but might not be eligible to contribute. As personal situations may change from year to year, so can an individual's eligibility. In addition, the IRS rules themselves are subject to change.
      That said, we cannot explicitly determine if you are eligible to contribute to an HSA, as that would be advice specific to you and, as such, would be a job for a tax advisor. However, we can review and clarify the eligibility requirements. To make sure we're all on the same page, for 2024, you are eligible to contribute to an HSA if:
      - You're covered by an HSA-eligible health plan on the first of the month
      - You're not covered by an ineligible health plan
      - You're not enrolled in Medicare
      - You cannot be claimed as a dependent on someone else's tax return
      Thanks again for reaching out. We're here to help with any future questions.

  • @ElizabethElijah2g
    @ElizabethElijah2g 24 дні тому

    Investments are the roots of financial security; the deeper they grow, the stronger your future will be."

    • @SebastianNoah5e
      @SebastianNoah5e 24 дні тому

      The deeper your investment roots, the stronger your financial security will be in the future.

    • @RubyOliverm5l
      @RubyOliverm5l 24 дні тому

      My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.

    • @SofiaJames9H
      @SofiaJames9H 24 дні тому

      Thank you for this amazing tip. I just looked the name up and wrote her.

  • @straitjacketstudios
    @straitjacketstudios 2 місяці тому

    Currently I have a HDHP (2024), this plan will continue through all of calendar 2025, but due to a company layoff, I may need to switch plans in early 2025 as we will be moved to COBRA (still with the same HDHP), however if COBRA costs are unaffordable I might need to change coverage which may cause me to lose my HDHP at that point (let's say March 2025 for an example). Since I will have my HDHP in place in early 2025, can I fully contribute to the max in Jan 2025 to cover my 2025 contributions in full, even though I may have to move from a HDHP later in 2025?

    • @fidelityinvestments
      @fidelityinvestments  2 місяці тому

      Hello, and thanks for the reply. We appreciate your business!
      The IRS determines who is eligible to contribute to an HSA, not Fidelity. We strongly encourage you to consult with a qualified tax professional regarding your specific situation and for any questions related to tax filing or reporting.
      That said, there are some resources on our website that can with the process.
      HSA Contributions and Eligibility www.fidelity.com/learning-center/smart-money/hsa-contribution-limits
      HSA FAQs www.fidelity.com/go/hsa/faqs
      Please let us know if we can further assist.

  • @ladycoder2095
    @ladycoder2095 4 місяці тому +1

    Can a self employed person put money in HSA?

    • @fidelityinvestments
      @fidelityinvestments  4 місяці тому +1

      Hey there! To contribute to an HSA, you must be enrolled in an HSA-eligible health plan. Those eligible for an HSA must also be aware of the contribution limits. For 2024, those are $4,150 for self-only coverage and $8,300 for family coverage. Anyone 55 and older can contribute an additional $1,000 as a catch-up contribution for both 2023 and 2024. While you can only contribute a certain amount to your HSA each year, all contributions roll over from year to year for you to use. You can learn more about HSA contribution limits and eligibility requirements in the article linked below.
      You can learn more about HSA contribution limits and eligibility requirements in the article linked below.
      HSA contribution limits and eligibility rules: www.fidelity.com/learning-center/smart-money/hsa-contribution-limits
      That said, we strongly encourage you to consult with a qualified tax professional regarding your specific situation if you have questions about the eligibility of your plan, or related to tax filing or reporting.
      Please don't hesitate to let us know if there's anything else we can help with.

    • @ladycoder2095
      @ladycoder2095 4 місяці тому

      @@fidelityinvestments , thanks for the info. Can you also please talk about parking the funds in the default Money Market account FDRXX that Fidelity offers in the next podcast?

    • @fidelityinvestments
      @fidelityinvestments  4 місяці тому

      Thanks for the suggestion! We'll make sure to pass it along to the appropriate teams.

    • @MrsPamB
      @MrsPamB 4 місяці тому

      Thanks so much for this video, I wasn’t aware that you should leave some of your HSA in cash! I have all it invested except for my most recent contribution. That would have been embarrassing at my doctors appointment next week when I tried to copay with my debit card 😮

  • @1614josue
    @1614josue 4 місяці тому +1

    Can I have both an FSA and an HSA?

    • @fidelityinvestments
      @fidelityinvestments  4 місяці тому +1

      Hi there, Bebo! Thanks for reaching out.
      You can typically only contribute to one type of plan in a year at a time unless your employer offers a limited-purpose flexible spending account (LPFSA). An LPFSA is an employer-sponsored pre-tax account that can used to pay for qualified dental and vision expenses for employees enrolled in a Health Savings Account (HSA) -eligible health plan. To further expand, HSAs can be opened by individuals with eligible high-deductible health plans while, in contrast, FSAs are exclusively available as an employer benefit. Accordingly, you are not able to open an FSA on Fidelity.com.
      We have a handy article on our website here that explains in more detail here:
      www.fidelity.com/learning-center/smart-money/hsa-vs-fsa
      Thanks for reaching out; we hope you have a great day!

    • @1614josue
      @1614josue 4 місяці тому

      @@fidelityinvestments this is great information. Thank you for reaching back to me. 😁

    • @fidelityinvestments
      @fidelityinvestments  4 місяці тому

      We're glad to hear this, Bebo! If you have any future questions, please don't hesitate to ask. As always, don't forget to like and subscribe to stay updated on our new videos. Have a great day!

  • @uchinan_chiburu
    @uchinan_chiburu 4 місяці тому +1

    does a HSA have a RMD?

    • @fidelityinvestments
      @fidelityinvestments  4 місяці тому +1

      Thanks for commenting on our UA-cam channel!
      Health Savings Accounts (HSAs) are not subject to required minimum distribution (RMD) rules. You can learn more about HSAs and how to get most of your HSA at the link below.
      What is an HSA, and how does it work?: www.fidelity.com/learning-center/smart-money/what-is-an-hsa
      Don't forget to like and subscribe to stay updated on our latest videos. Have a great day!

    • @uchinan_chiburu
      @uchinan_chiburu 4 місяці тому

      @@fidelityinvestments thanks!

    • @fidelityinvestments
      @fidelityinvestments  4 місяці тому

      You're very welcome! :)