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Great video! Another good thing about HSA's is that if you can hold onto them until you're 65, you can convert the account into a basic retirement account and use it for whatever you'd like.
I think the HDHP requirement is ill designed. Rather, the annual contribution limit should be (linearly) proportional to the deductible of whatever one’s health plan is during that tax year. E.g. something like 1/2 of one’s deductible. And if you don’t have health insurance, there should be a nominal maximum.
I kind of get what you saying, but I don't think we should complicate things further than they already are in my opinion. I would be all for every citizen being eligible for an HSA regardless!
Hi! The IRS states that someone who is unemployed can CONTRIBUTE to a HSA account, but it doesn't mention if someone who is unemployed can OPEN an account. Do you know if it is possible? (For someone who has money and is unemployed to open an HSA account).
I cannot say with 100% certainty, but I believe that you can because the IRS says: "To be an eligible individual and qualify for an HSA, you must meet the following requirements: -You are covered under a high deductible health plan (HDHP), described later, on the first day of the month. -You have no other health coverage except what is permitted under Other health coverage , later. -You aren’t enrolled in Medicare. -You can’t be claimed as a dependent on someone else’s 2020 tax return."
Thank you for your video. I do have a question. My husband has an hsa account and our family health insurance plan is through his work. We do not work for the same employer. Am I still eligible to open up my own HSA account? How do I go about it?
If you are covered under your husbands health insurance plan at work and it's HSA eligible then I believe the HSA would be a "family HSA" that applies to both of you, and therefore you can contribute to it at the family rate. Talk to your husbands HSA provider first to make sure.
if i am covering $3100(maximum) on HSA (inluding employer's $500 contribution), for biweekly paystub, do i just simply 3100 divide 26weeks for biweekly deduction and put $3100 annual election in my benefits enrollment form?
I'm not 100% sure on exactly how the HSA paperwork is done correctly, but I do know that employee + employer contributions count towards the IRS limit. So technically, I believe you would state the $3,600 annual election on your enrollment form. I would just check with your HSA provider to make sure. Also keep in mind that you can max out your HSA earlier on in the year if you can afford it, it doesn't need to be equal payment contributions. I hope this helps!
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Great video! Another good thing about HSA's is that if you can hold onto them until you're 65, you can convert the account into a basic retirement account and use it for whatever you'd like.
Absolutely, just like a traditional IRA!
Pretty cool account, thanks for the breakdown mate! Keep it up!
Thanks, will do!
I think the HDHP requirement is ill designed. Rather, the annual contribution limit should be (linearly) proportional to the deductible of whatever one’s health plan is during that tax year. E.g. something like 1/2 of one’s deductible. And if you don’t have health insurance, there should be a nominal maximum.
I kind of get what you saying, but I don't think we should complicate things further than they already are in my opinion. I would be all for every citizen being eligible for an HSA regardless!
Hi! The IRS states that someone who is unemployed can CONTRIBUTE to a HSA account, but it doesn't mention if someone who is unemployed can OPEN an account. Do you know if it is possible? (For someone who has money and is unemployed to open an HSA account).
I cannot say with 100% certainty, but I believe that you can because the IRS says:
"To be an eligible individual and qualify for an HSA, you must meet the following requirements:
-You are covered under a high deductible health plan (HDHP), described later, on the first day of the month.
-You have no other health coverage except what is permitted under Other health coverage , later.
-You aren’t enrolled in Medicare.
-You can’t be claimed as a dependent on someone else’s 2020 tax return."
Thank you for your video. I do have a question. My husband has an hsa account and our family health insurance plan is through his work. We do not work for the same employer. Am I still eligible to open up my own HSA account? How do I go about it?
If you are covered under your husbands health insurance plan at work and it's HSA eligible then I believe the HSA would be a "family HSA" that applies to both of you, and therefore you can contribute to it at the family rate. Talk to your husbands HSA provider first to make sure.
if i am covering $3100(maximum) on HSA (inluding employer's $500 contribution), for biweekly paystub, do i just simply 3100 divide 26weeks for biweekly deduction and put $3100 annual election in my benefits enrollment form?
I'm not 100% sure on exactly how the HSA paperwork is done correctly, but I do know that employee + employer contributions count towards the IRS limit. So technically, I believe you would state the $3,600 annual election on your enrollment form. I would just check with your HSA provider to make sure. Also keep in mind that you can max out your HSA earlier on in the year if you can afford it, it doesn't need to be equal payment contributions. I hope this helps!
@@OnCashFlow thank you so much.
So i can still put $3600 annual election even if my enrollment says ‘max $3100 (including employer’s $500 contribution)’ ?
@@yoo131 to your employer the election would be $3100 but the contribution (to the irs) is $3600 I Believe In your situation.
@@OnCashFlow thank you !
good insight
Thank you!