PBS Frontline : The Retirement Gamble, sorta Must See (4 Viewers)

[Sand]

We only have $40k saved for a down payment on a home right now, expect this to be less than 10%. We could qualify for VA loan but those rates generally aren't good.

I guess you won't be buying in Huntsville if you go there? That would be a whopping house there. Is it possible to take out the VA loan and refinance one you get the 20%?

 

[Slapdash]

I've asked this before elsewhere, but curious to see what others think.

Background:

I'm 5 or slightly more years away from first retirement, but I'll get another job at that point. Don't know what that will be.

We have a good amount saved/invested and unless something highly unexpected happens, we'll get a nice pension - enough to cover most of our expenses other than a mortgage.

We only have $40k saved for a down payment on a home right now, expect this to be less than 10%. We could qualify for VA loan but those rates generally aren't good.

Been putting away 5k in each of our Roths each year along with 10% in the TSP and 2k in each of our kids college accounts. They're 3-12, so there's some time there but the oldest may start college soon after I retire. Don't expect much in scholarships for him unless he gets his #### together, but his younger brother is on the right track right now (granted, he's in 4th grade). I don't plan on adding much to their accounts the next few years.

Question:

How much would you start putting into the house fund at the expense of retirement funds? We could just wait until 2018 to start the house fund and go all-in for a year to two years to get us to 30%. Is this the smart move? Or is it better to put a five thousand each year in the more conservative house fund?

Are you maxing out the TSP? What about the 401K in addition? I think you'd come out ahead to max out both and minimize your tax burden for the time being.

 

[shady inc]

How much is too much to have in a HSA? Ours is through a credit union, without investment options. We get about 1% on the balance. Our max out of pocket $5K/yr. At what point should I stop contributing to this account and invest that money in Roth/401K?

I personally think that having 2.5 years of deductibles is the correct choice.

You want to have money for that armageddon situation... emergency situation in December, then another situation in January when it's new deductible time and then a little left over.

I'm still working on getting up to 2.5 years because I'm always spending some money from the account, but that's the point at which I would either quit, or open a 2nd account at somewhere like BAnk of AMerica HSA or HSA bank

How do you know what your deductible is?

I googled it and found HDHP minimum deductible of $1,250 and maximum of $6,350. I get my 1 "free" yearly check-up, but don't really go to the doctor otherwise. So I'm not sure which deductible to use to multiply by 2.5. Is it a plan specific thing?

I currently have about $10K in my Chase HSA, and am debating whether to stop contributing at year-end.

 

[fourd]

While we're on the topic of HSAs, can someone educate me on the transferability of the accounts? I'm usually pretty good on the concepts of rollovers, conversions, etc....kinda comes with the territory as a "tax guy", but I'm pretty woefully uneducated on HSAs. I have an HSA at work. I contribute a portion of my weekly paycheck, but nowhere near the annual contribution cap. Over the years, it's accumulated a bit to where I now have a few grand in the account. Nothing big, but it does actually approximate the (2.5 x annual HDHP deductible) amount that Dentist notes above.

My problem: the investment choices suck. The only option with this place is a basic interest-bearing account, which has an interest rate of something absurdly low. I'm not looking to take chances to find a big yield in my HSA, but I'm not even beating inflation at this point. I'd like to invest in something a little better for my money.

Is it possible to do a "rollover" into something better? Or am I locked into this bank because it's through my employer? Thinking of it from a 401(k) point of view, I wouldn't be able to rollover a 401(k) into an IRA without terminating employment (which I don't plan to do)....are HSA's treated the same way? Or can I maybe move a large portion of the HSA to a more advantageous bank and continue having my weekly contributions go into the original account through my work payroll deductions?

There should be nothing preventing you from doing this. Money in an HSA can be transferred between custodians. While you may be locked into the bank for the payroll deductions I'm unaware of anything that would require you to keep all of the money there.

 

[Dentist]

How much is too much to have in a HSA? Ours is through a credit union, without investment options. We get about 1% on the balance. Our max out of pocket $5K/yr. At what point should I stop contributing to this account and invest that money in Roth/401K?

I personally think that having 2.5 years of deductibles is the correct choice.

You want to have money for that armageddon situation... emergency situation in December, then another situation in January when it's new deductible time and then a little left over.

I'm still working on getting up to 2.5 years because I'm always spending some money from the account, but that's the point at which I would either quit, or open a 2nd account at somewhere like BAnk of AMerica HSA or HSA bank

How do you know what your deductible is?

I googled it and found HDHP minimum deductible of $1,250 and maximum of $6,350. I get my 1 "free" yearly check-up, but don't really go to the doctor otherwise. So I'm not sure which deductible to use to multiply by 2.5. Is it a plan specific thing?

I currently have about $10K in my Chase HSA, and am debating whether to stop contributing at year-end.

If you look at the documentation on your specific insurance, you should be able to access that type of information.

Like i have a 5K deductible so I want to at least get 12.5K in there. NOw I intend to contribute the max every year after that, but any amount beyond 12.5K I would invest rather than keep at the horrible 1% rate that doesn't keep up with inflation.

And jeebus does medical inflation out-pace regular inflation.. my premium just got jacked up another $15 bucks a month (over 10% increase)

 

[Dentist]

While we're on the topic of HSAs, can someone educate me on the transferability of the accounts? I'm usually pretty good on the concepts of rollovers, conversions, etc....kinda comes with the territory as a "tax guy", but I'm pretty woefully uneducated on HSAs. I have an HSA at work. I contribute a portion of my weekly paycheck, but nowhere near the annual contribution cap. Over the years, it's accumulated a bit to where I now have a few grand in the account. Nothing big, but it does actually approximate the (2.5 x annual HDHP deductible) amount that Dentist notes above.

My problem: the investment choices suck. The only option with this place is a basic interest-bearing account, which has an interest rate of something absurdly low. I'm not looking to take chances to find a big yield in my HSA, but I'm not even beating inflation at this point. I'd like to invest in something a little better for my money.

Is it possible to do a "rollover" into something better? Or am I locked into this bank because it's through my employer? Thinking of it from a 401(k) point of view, I wouldn't be able to rollover a 401(k) into an IRA without terminating employment (which I don't plan to do)....are HSA's treated the same way? Or can I maybe move a large portion of the HSA to a more advantageous bank and continue having my weekly contributions go into the original account through my work payroll deductions?

There should be nothing preventing you from doing this. Money in an HSA can be transferred between custodians. While you may be locked into the bank for the payroll deductions I'm unaware of anything that would require you to keep all of the money there.

This. No reason you can't take a distribution as long as you roll it over to another HSA account.. you just have to deal with teh requisite paperwork and tax reporting hassles

 

[fourd]

How much is too much to have in a HSA? Ours is through a credit union, without investment options. We get about 1% on the balance. Our max out of pocket $5K/yr. At what point should I stop contributing to this account and invest that money in Roth/401K?

I personally think that having 2.5 years of deductibles is the correct choice.

You want to have money for that armageddon situation... emergency situation in December, then another situation in January when it's new deductible time and then a little left over.

I'm still working on getting up to 2.5 years because I'm always spending some money from the account, but that's the point at which I would either quit, or open a 2nd account at somewhere like BAnk of AMerica HSA or HSA bank

How do you know what your deductible is?

I googled it and found HDHP minimum deductible of $1,250 and maximum of $6,350. I get my 1 "free" yearly check-up, but don't really go to the doctor otherwise. So I'm not sure which deductible to use to multiply by 2.5. Is it a plan specific thing?

I currently have about $10K in my Chase HSA, and am debating whether to stop contributing at year-end.

Look at your outline of benefits for the insurance policy you have. Or call the customer service number to make sure. Is it just you or do you have family coverage? The family deductible will be two times your individual amount. I would actually use the annual out of pocket maximum to figure your total potential costs. Some HSAs have coinsurance that you will pay after the deductible is met.

Keep in mind that when you hit 65 the penalty for non-qualified withdrawals goes away so in effect you have an IRA. And, if at some point you decide you need long term care insurance you can pay for premiums from your HSA tax free.

 

[shady inc]

How much is too much to have in a HSA? Ours is through a credit union, without investment options. We get about 1% on the balance. Our max out of pocket $5K/yr. At what point should I stop contributing to this account and invest that money in Roth/401K?

I personally think that having 2.5 years of deductibles is the correct choice.

You want to have money for that armageddon situation... emergency situation in December, then another situation in January when it's new deductible time and then a little left over.

I'm still working on getting up to 2.5 years because I'm always spending some money from the account, but that's the point at which I would either quit, or open a 2nd account at somewhere like BAnk of AMerica HSA or HSA bank

How do you know what your deductible is?

I googled it and found HDHP minimum deductible of $1,250 and maximum of $6,350. I get my 1 "free" yearly check-up, but don't really go to the doctor otherwise. So I'm not sure which deductible to use to multiply by 2.5. Is it a plan specific thing?

I currently have about $10K in my Chase HSA, and am debating whether to stop contributing at year-end.

If you look at the documentation on your specific insurance, you should be able to access that type of information.

Like i have a 5K deductible so I want to at least get 12.5K in there. NOw I intend to contribute the max every year after that, but any amount beyond 12.5K I would invest rather than keep at the horrible 1% rate that doesn't keep up with inflation.

And jeebus does medical inflation out-pace regular inflation.. my premium just got jacked up another $15 bucks a month (over 10% increase)

out of curiousity, why not invest the 12.5K as well? wouldn't you still be able to sell those investments (since they're still within the HSA) if needed and have access to the money? and have it grow at more than a 1% (theoretically)

 

[shady inc]

How much is too much to have in a HSA? Ours is through a credit union, without investment options. We get about 1% on the balance. Our max out of pocket $5K/yr. At what point should I stop contributing to this account and invest that money in Roth/401K?

I personally think that having 2.5 years of deductibles is the correct choice.

You want to have money for that armageddon situation... emergency situation in December, then another situation in January when it's new deductible time and then a little left over.

I'm still working on getting up to 2.5 years because I'm always spending some money from the account, but that's the point at which I would either quit, or open a 2nd account at somewhere like BAnk of AMerica HSA or HSA bank

How do you know what your deductible is?

I googled it and found HDHP minimum deductible of $1,250 and maximum of $6,350. I get my 1 "free" yearly check-up, but don't really go to the doctor otherwise. So I'm not sure which deductible to use to multiply by 2.5. Is it a plan specific thing?

I currently have about $10K in my Chase HSA, and am debating whether to stop contributing at year-end.

Look at your outline of benefits for the insurance policy you have. Or call the customer service number to make sure. Is it just you or do you have family coverage? The family deductible will be two times your individual amount. I would actually use the annual out of pocket maximum to figure your total potential costs. Some HSAs have coinsurance that you will pay after the deductible is met.

Keep in mind that when you hit 65 the penalty for non-qualified withdrawals goes away so in effect you have an IRA. And, if at some point you decide you need long term care insurance you can pay for premiums from your HSA tax free.

so stopping contributing is probably the wrong way to go, even after getting to the 2.5x deductible (which i know is just a rule of thumb). because, assuming i don't have a real need for that money (the excess funds i'd be contributing at this point) until retirement, it's a better investment vehicle than anything else out there. since money goes IN and OUT tax free.

 

[urbanhack]

Just maxed out my 401 K for the year. have been putting 20% of my check in it and getting 25% match from employer. Unless anyone has any other suggestions, I'm going to use the extra cash each check to pay off about $2,000 in credit card debt.

 

[culdeus]

These HSA are a great deal. For the most part there is no way for the IRS to go in and check what is going on in those accounts either unless they could pull your statements.

 

[culdeus]

Just maxed out my 401 K for the year. have been putting 20% of my check in it and getting 25% match from employer. Unless anyone has any other suggestions, I'm going to use the extra cash each check to pay off about $2,000 in credit card debt.

I think you just committed a math fail. You are going to be losing your match for the rest of the year, no?

 

[fourd]

How much is too much to have in a HSA? Ours is through a credit union, without investment options. We get about 1% on the balance. Our max out of pocket $5K/yr. At what point should I stop contributing to this account and invest that money in Roth/401K?

I personally think that having 2.5 years of deductibles is the correct choice.

You want to have money for that armageddon situation... emergency situation in December, then another situation in January when it's new deductible time and then a little left over.

I'm still working on getting up to 2.5 years because I'm always spending some money from the account, but that's the point at which I would either quit, or open a 2nd account at somewhere like BAnk of AMerica HSA or HSA bank

How do you know what your deductible is?

I googled it and found HDHP minimum deductible of $1,250 and maximum of $6,350. I get my 1 "free" yearly check-up, but don't really go to the doctor otherwise. So I'm not sure which deductible to use to multiply by 2.5. Is it a plan specific thing?

I currently have about $10K in my Chase HSA, and am debating whether to stop contributing at year-end.

Look at your outline of benefits for the insurance policy you have. Or call the customer service number to make sure. Is it just you or do you have family coverage? The family deductible will be two times your individual amount. I would actually use the annual out of pocket maximum to figure your total potential costs. Some HSAs have coinsurance that you will pay after the deductible is met.

Keep in mind that when you hit 65 the penalty for non-qualified withdrawals goes away so in effect you have an IRA. And, if at some point you decide you need long term care insurance you can pay for premiums from your HSA tax free.

so stopping contributing is probably the wrong way to go, even after getting to the 2.5x deductible (which i know is just a rule of thumb). because, assuming i don't have a real need for that money (the excess funds i'd be contributing at this point) until retirement, it's a better investment vehicle than anything else out there. since money goes IN and OUT tax free.

As long as you can contribute to it you should. The money going in doesn't count towards your total salary deferrals and there are no income limits on who can contribute. But if you are going to carry a large balance make sure you have investment choices.

 

[eoMMan]

Just maxed out my 401 K for the year. have been putting 20% of my check in it and getting 25% match from employer. Unless anyone has any other suggestions, I'm going to use the extra cash each check to pay off about $2,000 in credit card debt.

Look at me! I make at least $87,500!

 

[Dentist]

How much is too much to have in a HSA? Ours is through a credit union, without investment options. We get about 1% on the balance. Our max out of pocket $5K/yr. At what point should I stop contributing to this account and invest that money in Roth/401K?

I personally think that having 2.5 years of deductibles is the correct choice.

You want to have money for that armageddon situation... emergency situation in December, then another situation in January when it's new deductible time and then a little left over.

I'm still working on getting up to 2.5 years because I'm always spending some money from the account, but that's the point at which I would either quit, or open a 2nd account at somewhere like BAnk of AMerica HSA or HSA bank

How do you know what your deductible is?

I googled it and found HDHP minimum deductible of $1,250 and maximum of $6,350. I get my 1 "free" yearly check-up, but don't really go to the doctor otherwise. So I'm not sure which deductible to use to multiply by 2.5. Is it a plan specific thing?

I currently have about $10K in my Chase HSA, and am debating whether to stop contributing at year-end.

If you look at the documentation on your specific insurance, you should be able to access that type of information.

Like i have a 5K deductible so I want to at least get 12.5K in there. NOw I intend to contribute the max every year after that, but any amount beyond 12.5K I would invest rather than keep at the horrible 1% rate that doesn't keep up with inflation.

And jeebus does medical inflation out-pace regular inflation.. my premium just got jacked up another $15 bucks a month (over 10% increase)

out of curiousity, why not invest the 12.5K as well? wouldn't you still be able to sell those investments (since they're still within the HSA) if needed and have access to the money? and have it grow at more than a 1% (theoretically)

same reason I wouldn't invest my 6 month emergency fund in the stock market. i need 100% of that money to be there when i need it.. not 70% of it if we have a swift, hard correction and then i have to see my investments at a loss to pay for the health care i need.

the first 2.5 deductibles to me are like my medical emergency fund.. you don't invest that money.. Beyond that you get aggressive.

 

[FUBAR]

We only have $40k saved for a down payment on a home right now, expect this to be less than 10%. We could qualify for VA loan but those rates generally aren't good.

I guess you won't be buying in Huntsville if you go there? That would be a whopping house there. Is it possible to take out the VA loan and refinance one you get the 20%?

no, that would probably only be a two year deal. We won't buy a house until 2019 or later.

 

[FUBAR]

I've asked this before elsewhere, but curious to see what others think.

Background:

I'm 5 or slightly more years away from first retirement, but I'll get another job at that point. Don't know what that will be.

We have a good amount saved/invested and unless something highly unexpected happens, we'll get a nice pension - enough to cover most of our expenses other than a mortgage.

We only have $40k saved for a down payment on a home right now, expect this to be less than 10%. We could qualify for VA loan but those rates generally aren't good.

Been putting away 5k in each of our Roths each year along with 10% in the TSP and 2k in each of our kids college accounts. They're 3-12, so there's some time there but the oldest may start college soon after I retire. Don't expect much in scholarships for him unless he gets his #### together, but his younger brother is on the right track right now (granted, he's in 4th grade). I don't plan on adding much to their accounts the next few years.

Question:

How much would you start putting into the house fund at the expense of retirement funds? We could just wait until 2018 to start the house fund and go all-in for a year to two years to get us to 30%. Is this the smart move? Or is it better to put a five thousand each year in the more conservative house fund?

Are you maxing out the TSP? What about the 401K in addition? I think you'd come out ahead to max out both and minimize your tax burden for the time being.

Not quite maxing at 10%. Could increase that a bit.

 

[eoMMan]

I've asked this before elsewhere, but curious to see what others think.

Background:

I'm 5 or slightly more years away from first retirement, but I'll get another job at that point. Don't know what that will be.

We have a good amount saved/invested and unless something highly unexpected happens, we'll get a nice pension - enough to cover most of our expenses other than a mortgage.

We only have $40k saved for a down payment on a home right now, expect this to be less than 10%. We could qualify for VA loan but those rates generally aren't good.

Been putting away 5k in each of our Roths each year along with 10% in the TSP and 2k in each of our kids college accounts. They're 3-12, so there's some time there but the oldest may start college soon after I retire. Don't expect much in scholarships for him unless he gets his #### together, but his younger brother is on the right track right now (granted, he's in 4th grade). I don't plan on adding much to their accounts the next few years.

Question:

How much would you start putting into the house fund at the expense of retirement funds? We could just wait until 2018 to start the house fund and go all-in for a year to two years to get us to 30%. Is this the smart move? Or is it better to put a five thousand each year in the more conservative house fund?

I would stay the course and not go too crazy on one or the other.

Keep plugging away on the kid's college and encourage them to stay in state. It's insane what some of these schools cost.

 

[Slapdash]

I've asked this before elsewhere, but curious to see what others think.

Background:

I'm 5 or slightly more years away from first retirement, but I'll get another job at that point. Don't know what that will be.

We have a good amount saved/invested and unless something highly unexpected happens, we'll get a nice pension - enough to cover most of our expenses other than a mortgage.

We only have $40k saved for a down payment on a home right now, expect this to be less than 10%. We could qualify for VA loan but those rates generally aren't good.

Been putting away 5k in each of our Roths each year along with 10% in the TSP and 2k in each of our kids college accounts. They're 3-12, so there's some time there but the oldest may start college soon after I retire. Don't expect much in scholarships for him unless he gets his #### together, but his younger brother is on the right track right now (granted, he's in 4th grade). I don't plan on adding much to their accounts the next few years.

Question:

How much would you start putting into the house fund at the expense of retirement funds? We could just wait until 2018 to start the house fund and go all-in for a year to two years to get us to 30%. Is this the smart move? Or is it better to put a five thousand each year in the more conservative house fund?

Are you maxing out the TSP? What about the 401K in addition? I think you'd come out ahead to max out both and minimize your tax burden for the time being.

Not quite maxing at 10%. Could increase that a bit.

This would be my play to reduce your tax burden significantly.

 

[Slapdash]

Just maxed out my 401 K for the year. have been putting 20% of my check in it and getting 25% match from employer. Unless anyone has any other suggestions, I'm going to use the extra cash each check to pay off about $2,000 in credit card debt.

I think you just committed a math fail. You are going to be losing your match for the rest of the year, no?

He probably means the employer is matching 25% of whatever he contributes so timing really doesn't matter.

Congrats Hack! This is my first year maxing everything out (401k, Roth, and HSA).

 

[FUBAR]

I've asked this before elsewhere, but curious to see what others think.

Background:

I'm 5 or slightly more years away from first retirement, but I'll get another job at that point. Don't know what that will be.

We have a good amount saved/invested and unless something highly unexpected happens, we'll get a nice pension - enough to cover most of our expenses other than a mortgage.

We only have $40k saved for a down payment on a home right now, expect this to be less than 10%. We could qualify for VA loan but those rates generally aren't good.

Been putting away 5k in each of our Roths each year along with 10% in the TSP and 2k in each of our kids college accounts. They're 3-12, so there's some time there but the oldest may start college soon after I retire. Don't expect much in scholarships for him unless he gets his #### together, but his younger brother is on the right track right now (granted, he's in 4th grade). I don't plan on adding much to their accounts the next few years.

Question:

How much would you start putting into the house fund at the expense of retirement funds? We could just wait until 2018 to start the house fund and go all-in for a year to two years to get us to 30%. Is this the smart move? Or is it better to put a five thousand each year in the more conservative house fund?

Are you maxing out the TSP? What about the 401K in addition? I think you'd come out ahead to max out both and minimize your tax burden for the time being.

Not quite maxing at 10%. Could increase that a bit.

This would be my play to reduce your tax burden significantly.

probably a good call, but with 6 of us our tax burden is really low as it is.

 

[Dentist]

Just maxed out my 401 K for the year. have been putting 20% of my check in it and getting 25% match from employer. Unless anyone has any other suggestions, I'm going to use the extra cash each check to pay off about $2,000 in credit card debt.

I think you just committed a math fail. You are going to be losing your match for the rest of the year, no?

He probably means the employer is matching 25% of whatever he contributes so timing really doesn't matter.

Congrats Hack! This is my first year maxing everything out (401k, Roth, and HSA).

welcome to that exclusive club... it'll put you on the fast track to millionaire status (although it would've been better if you'd been doing this starting around 2009)

 

[urbanhack]

Just maxed out my 401 K for the year. have been putting 20% of my check in it and getting 25% match from employer. Unless anyone has any other suggestions, I'm going to use the extra cash each check to pay off about $2,000 in credit card debt.

I think you just committed a math fail. You are going to be losing your match for the rest of the year, no?

He probably means the employer is matching 25% of whatever he contributes so timing really doesn't matter.

Congrats Hack! This is my first year maxing everything out (401k, Roth, and HSA).

Yes..i maxed the $17,500. Does that include both 401K and Roth or can they be broken out separately.

And yes, the 25% is the company match of whatever I put in.

 

[urbanhack]

Just maxed out my 401 K for the year. have been putting 20% of my check in it and getting 25% match from employer. Unless anyone has any other suggestions, I'm going to use the extra cash each check to pay off about $2,000 in credit card debt.

I think you just committed a math fail. You are going to be losing your match for the rest of the year, no?

He probably means the employer is matching 25% of whatever he contributes so timing really doesn't matter.

Congrats Hack! This is my first year maxing everything out (401k, Roth, and HSA).

welcome to that exclusive club... it'll put you on the fast track to millionaire status (although it would've been better if you'd been doing this starting around 2009)

yes, unfortunately I had an ex-wife get in way that ####ed everything up for me pre-2010. We saved absolutely nothing while we were married, luckily the divorce wasn't that expensive.

 

[culdeus]

Just maxed out my 401 K for the year. have been putting 20% of my check in it and getting 25% match from employer. Unless anyone has any other suggestions, I'm going to use the extra cash each check to pay off about $2,000 in credit card debt.

I think you just committed a math fail. You are going to be losing your match for the rest of the year, no?

He probably means the employer is matching 25% of whatever he contributes so timing really doesn't matter.

Congrats Hack! This is my first year maxing everything out (401k, Roth, and HSA).

Yes..i maxed the $17,500. Does that include both 401K and Roth or can they be broken out separately.

And yes, the 25% is the company match of whatever I put in.

At my company if you run out of available contributions and have to go 0 prior to EOY their match stops too and you can't undo a previous contribution to back into it. YMMV YWIA HTH GB

 

[Random]

While we're on the topic of HSAs, can someone educate me on the transferability of the accounts? I'm usually pretty good on the concepts of rollovers, conversions, etc....kinda comes with the territory as a "tax guy", but I'm pretty woefully uneducated on HSAs. I have an HSA at work. I contribute a portion of my weekly paycheck, but nowhere near the annual contribution cap. Over the years, it's accumulated a bit to where I now have a few grand in the account. Nothing big, but it does actually approximate the (2.5 x annual HDHP deductible) amount that Dentist notes above.

My problem: the investment choices suck. The only option with this place is a basic interest-bearing account, which has an interest rate of something absurdly low. I'm not looking to take chances to find a big yield in my HSA, but I'm not even beating inflation at this point. I'd like to invest in something a little better for my money.

Is it possible to do a "rollover" into something better? Or am I locked into this bank because it's through my employer? Thinking of it from a 401(k) point of view, I wouldn't be able to rollover a 401(k) into an IRA without terminating employment (which I don't plan to do)....are HSA's treated the same way? Or can I maybe move a large portion of the HSA to a more advantageous bank and continue having my weekly contributions go into the original account through my work payroll deductions?

There should be nothing preventing you from doing this. Money in an HSA can be transferred between custodians. While you may be locked into the bank for the payroll deductions I'm unaware of anything that would require you to keep all of the money there.

This. No reason you can't take a distribution as long as you roll it over to another HSA account.. you just have to deal with teh requisite paperwork and tax reporting hassles

Any recommendations on a good HSA bank to roll over to? Low fees, good investment options?

 

[Tiger Fan]

25% match. damn

 

[FUBAR]

25% match. damn

no kidding. we get nada.

 

[Gawain]

Just maxed out my 401 K for the year. have been putting 20% of my check in it and getting 25% match from employer. Unless anyone has any other suggestions, I'm going to use the extra cash each check to pay off about $2,000 in credit card debt.

I think you just committed a math fail. You are going to be losing your match for the rest of the year, no?

He probably means the employer is matching 25% of whatever he contributes so timing really doesn't matter.

Congrats Hack! This is my first year maxing everything out (401k, Roth, and HSA).

Yes..i maxed the $17,500. Does that include both 401K and Roth or can they be broken out separately.

And yes, the 25% is the company match of whatever I put in.

At my company if you run out of available contributions and have to go 0 prior to EOY their match stops too and you can't undo a previous contribution to back into it. YMMV YWIA HTH GB

Explain this to me like I'm shuke.

If he puts in 17,500 over 10 months (1,750 a month), his employer puts in 437.50 a month. Total 21,875

If he puts 17,500 in over 12 months (1,458.33 a month), his employer puts in 364.58 a month. Total 21,875

I'd think that it's only a bad thing if his employer match is capped at any point. (25% of your first 5% or something). It's a good thing in his case because he gets employer cash in the market earlier.

 

[Slapdash]

Just maxed out my 401 K for the year. have been putting 20% of my check in it and getting 25% match from employer. Unless anyone has any other suggestions, I'm going to use the extra cash each check to pay off about $2,000 in credit card debt.

I think you just committed a math fail. You are going to be losing your match for the rest of the year, no?

He probably means the employer is matching 25% of whatever he contributes so timing really doesn't matter.

Congrats Hack! This is my first year maxing everything out (401k, Roth, and HSA).

welcome to that exclusive club... it'll put you on the fast track to millionaire status (although it would've been better if you'd been doing this starting around 2009)

Thanks. I was still in college in 2009 so it would have been a little difficult

 

[urbanhack]

25% match. damn

it's funny. I used think this wasn't all that great. I guess the days of 100% or even 50% match are gone?

 

[culdeus]

Just maxed out my 401 K for the year. have been putting 20% of my check in it and getting 25% match from employer. Unless anyone has any other suggestions, I'm going to use the extra cash each check to pay off about $2,000 in credit card debt.

I think you just committed a math fail. You are going to be losing your match for the rest of the year, no?

He probably means the employer is matching 25% of whatever he contributes so timing really doesn't matter.

Congrats Hack! This is my first year maxing everything out (401k, Roth, and HSA).

Yes..i maxed the $17,500. Does that include both 401K and Roth or can they be broken out separately.

And yes, the 25% is the company match of whatever I put in.

At my company if you run out of available contributions and have to go 0 prior to EOY their match stops too and you can't undo a previous contribution to back into it. YMMV YWIA HTH GB

Explain this to me like I'm shuke.

If he puts in 17,500 over 10 months (1,750 a month), his employer puts in 437.50 a month. Total 21,875

If he puts 17,500 in over 12 months (1,458.33 a month), his employer puts in 364.58 a month. Total 21,875

I'd think that it's only a bad thing if his employer match is capped at any point. (25% of your first 5% or something). It's a good thing in his case because he gets employer cash in the market earlier.

My match is capped. Maybe that's not normal.

 

[otello]

http://www.401khelpcenter.com/2015_401k_plan_limits.html#.VFgXFtm9Kc0

 

[wilked]

Wait, does that mean if he puts in $20, the company adds in $5 ($25 total)? I thought he meant the match was 25-for-20, meaning if he put in $20, the employer would put in $25 ($45 total).

I'm lucky enough to be at a place that matches above what I put in, but the %s are much lower... if I put in 6% they'll match with 7%, meaning if I put in $6 they put in $7 for $13 total.

exactly, 25% is not that great.

FWIW my company matches 150% up to 6% of my salary, more than 2X better than the 25% match

 

[Slapdash]

Wait, does that mean if he puts in $20, the company adds in $5 ($25 total)? I thought he meant the match was 25-for-20, meaning if he put in $20, the employer would put in $25 ($45 total).

I'm lucky enough to be at a place that matches above what I put in, but the %s are much lower... if I put in 6% they'll match with 7%, meaning if I put in $6 they put in $7 for $13 total.

exactly, 25% is not that great.

FWIW my company matches 150% up to 6% of my salary, more than 2X better than the 25% match

That is a nice amount. Mine does 5%.

 

[Doctor Detroit]

Wait, does that mean if he puts in $20, the company adds in $5 ($25 total)? I thought he meant the match was 25-for-20, meaning if he put in $20, the employer would put in $25 ($45 total).

I'm lucky enough to be at a place that matches above what I put in, but the %s are much lower... if I put in 6% they'll match with 7%, meaning if I put in $6 they put in $7 for $13 total.

exactly, 25% is not that great.

FWIW my company matches 150% up to 6% of my salary, more than 2X better than the 25% match

That is a nice amount. Mine does 5%.

My company is the U.S. government, they do 5% also. No complaints here, the tsp match could be the same as my annual Christmas bonus in theory.

 

[wilked]

5% of salary and 25% of 401K are equivalent at an $87.5k salary assuming max contribution, for what it's worth.

 

[Sand]

Wait, does that mean if he puts in $20, the company adds in $5 ($25 total)? I thought he meant the match was 25-for-20, meaning if he put in $20, the employer would put in $25 ($45 total).

I'm lucky enough to be at a place that matches above what I put in, but the %s are much lower... if I put in 6% they'll match with 7%, meaning if I put in $6 they put in $7 for $13 total.

exactly, 25% is not that great.

FWIW my company matches 150% up to 6% of my salary, more than 2X better than the 25% match

That is a nice amount. Mine does 5%.

My company is the U.S. government, they do 5% also. No complaints here, the tsp match could be the same as my annual Christmas bonus in theory.

Having access to TSP funds is a pretty good bonus all in itself.

For what it is worth my company does 4% base and 4% 100% match. No complaints - that benefit is one of the reasons people tend to stick around my place.

 

[FUBAR]

Wait, does that mean if he puts in $20, the company adds in $5 ($25 total)? I thought he meant the match was 25-for-20, meaning if he put in $20, the employer would put in $25 ($45 total).

I'm lucky enough to be at a place that matches above what I put in, but the %s are much lower... if I put in 6% they'll match with 7%, meaning if I put in $6 they put in $7 for $13 total.

exactly, 25% is not that great.

FWIW my company matches 150% up to 6% of my salary, more than 2X better than the 25% match

That is a nice amount. Mine does 5%.

My company is the U.S. government, they do 5% also. No complaints here, the tsp match could be the same as my annual Christmas bonus in theory.

for you they do.

TSP is a pretty good deal.

 

[Balco]

Stupid question. Can anyone open an hsa? Or does it have to be offered by work? My work only offers an fsa.

 

[fourd]

Stupid question. Can anyone open an hsa? Or does it have to be offered by work? My work only offers an fsa.

No, in order to open a HSA you need to have a qualified high deductible health plan. If you are on your employer plan and they use the FSA you most likely can't open a HSA.

Edit: Though I should add it isn't something that has to be offered by your work. The HSA is owned by you, even if it's done through your employer.

 

[Random]

So after a little research on using the HSA as a retirement account, it turns out it not just save until 65 then pull it out tax free. Sounds like you have to pay medical expenses with after tax dollars, shoebox the receipts, then pay yourself back for all those expenses from your HSA in retirement. Is this correct?

I guess the good thing is that you can do this anytime, you don't have to wait until a certain age.

Thoughts?

 

[Binky The Doormat]

So after a little research on using the HSA as a retirement account, it turns out it not just save until 65 then pull it out tax free. Sounds like you have to pay medical expenses with after tax dollars, shoebox the receipts, then pay yourself back for all those expenses from your HSA in retirement. Is this correct?

I guess the good thing is that you can do this anytime, you don't have to wait until a certain age.

Thoughts?

Not an issue, you'll have plenty of health care premium to eat it up quickly - even if you aren't sick.

 

[Doctor Detroit]

Anyone have a gold ETF? Seems like a good time to buy a 10% stake in gold IMO as bonds seem like a terrible intermediate term hedge bet.

Problem is where I need it is in my 401k, but the TSP doesn't have such an animal. Just a short-term Treasury bill fund but with interest rates the way they are, that thing is barely gonna be better than a savings account.

 

[Dentist]

Anyone have a gold ETF? Seems like a good time to buy a 10% stake in gold IMO as bonds seem like a terrible intermediate term hedge bet.

Problem is where I need it is in my 401k, but the TSP doesn't have such an animal. Just a short-term Treasury bill fund but with interest rates the way they are, that thing is barely gonna be better than a savings account.

iau or gld

 

[inca911]

So after a little research on using the HSA as a retirement account, it turns out it not just save until 65 then pull it out tax free. Sounds like you have to pay medical expenses with after tax dollars, shoebox the receipts, then pay yourself back for all those expenses from your HSA in retirement. Is this correct?

I guess the good thing is that you can do this anytime, you don't have to wait until a certain age.

Thoughts?

No. HSA is funded by pre-tax dollars, not post-tax. You can use it to pay medical expenses at any time. My HSA is just a credit card that I can use to pay medical bills, so it's incredibly simple. No forms, no receipts, no paying myself. As pointed out by others, your medical coverage premiums will eventually be paid from this account after you retire, and no longer have coverage though an employer. The HSA is the ONLY vehicle that avoids ALL tax on your money, including all returns that you get from your HSA investments (note that HSA investment options are dependent on your HSA provider).

 

[rascal]

Tsp thoughts? Do traditional 401(k) or do Roth 401 (k)?

 

[FUBAR]

Anyone have a gold ETF? Seems like a good time to buy a 10% stake in gold IMO as bonds seem like a terrible intermediate term hedge bet.

Problem is where I need it is in my 401k, but the TSP doesn't have such an animal. Just a short-term Treasury bill fund but with interest rates the way they are, that thing is barely gonna be better than a savings account.

Same problem here but I could make some moves in my other Roth or house fund.

 

[FUBAR]

Tsp thoughts? Do traditional 401(k) or do Roth 401 (k)?

I'm doing both.

 

[Doctor Detroit]

Tsp thoughts? Do traditional 401(k) or do Roth 401 (k)?

If you are under 30 I'd do the Roth for sure. If you aren't then you have to consider what your tax rate might be in retirement, if you think it'll be higher than it is now, Roth might be best. Also factor in the difference in take home pay as you're paying taxes on the Roth now, not later, hence less take home cash.

I had been putting a few percentages into the Roth but now I'm back 100% into the traditional. Here is a video which might explain more to help you make your decision.