Personal Finance Advice and Education! (3 Viewers)

[Desert_Power]

What's a "sweep account"?

It is basically investment options on your uninvested cash. With Merrill, you have to actively put it into an option like SHV but Fidelity will automatically move it over. The Preferred Rewards program is pretty good in a lot of other ways (credit card multipliers and foreign currency).

 

[The Z Machine]

Thanks, collective brain trust of FBGs

 

[BeTheMatch]

Anyone use Monarch? Considering it and wondering if anyone has feelings on whether it's worth the fee or not.

 

[shuke]

Open enrollment time at work. I've never done a high deductible plan because we spend a lot on medical expenses. How does the option of having an HSA change this?

 

[-OZ-]

Open enrollment time at work. I've never done a high deductible plan because we spend a lot on medical expenses. How does the option of having an HSA change this?

If you actually have a lot medical expenses it doesn’t change that you’re spending the money.
HDHP and the HSA work best for people with low current expenses.

 

[matttyl]

Open enrollment time at work. I've never done a high deductible plan because we spend a lot on medical expenses. How does the option of having an HSA change this?

How much time do you have? I’m a life/health insurance agent and would be happy to chat with you directly to discuss anything specific…

However it really comes down to a math problem. Look at the options you have and your expected medical expenses. See how much each plan will cost (over a year) for each plan, then add in the medical expenses for each (first part towards deductible, then rest to coinsurance percentage potentially up to the max out of pocket). You’ll more than likely save premium dollars going with the High Deductible (HSA) option, but more out of pocket expenses - see how much one offsets the other. Then take into account the tax benefits of the HSA if you plan on taking advantage of it (huge tax benefits!!). It definitely makes sense for my family as the tax breaks more than offset the additional out of pocket we have (we don’t typically have large medical expenses each year, but in those we do we blow past the deductible all the way up to the max OOP).

As an example for the above - I have a family member on a very, very expensive Rx. She knows she’ll not only hit her deductible, she’ll hit her max OOP each year by April or May. She adds her 12 months of premium and her max OOP together for each option, and for her the high deductible (low premium) plan always has the lowest total cost as the difference in max OOP is more than offset by the premium savings and HSA tax benefits .

 

[-OZ-]

Open enrollment time at work. I've never done a high deductible plan because we spend a lot on medical expenses. How does the option of having an HSA change this?

How much time do you have? I’m a life/health insurance agent and would be happy to chat with you directly to discuss anything specific…

However it really comes down to a math problem. Look at the options you have and your expected medical expenses. See how much each plan will cost (over a year) for each plan, then add in the medical expenses for each (first part towards deductible, then rest to coinsurance percentage potentially up to the max out of pocket). You’ll more than likely save premium dollars going with the High Deductible (HSA) option, but more out of pocket expenses - see how much one offsets the other. Then take into account the tax benefits of the HSA if you plan on taking advantage of it (huge tax benefits!!). It definitely makes sense for my family as the tax breaks more than offset the additional out of pocket we have (we don’t typically have large medical expenses each year, but in those we do we blow past the deductible all the way up to the max OOP).

As an example for the above - I have a family member on a very, very expensive Rx. She knows she’ll not only hit her deductible, she’ll hit her max OOP each year by April or May. She adds her 12 months of premium and her max OOP together for each option, and for her the high deductible (low premium) plan always has the lowest total cost as the difference in max OOP is more than offset by the premium savings and HSA tax benefits .

Interesting. So those who benefit tend to fall on either end on the spectrum? I guess it depends on the max OOP vs expenses.

 

[Sand]

As an example for the above - I have a family member on a very, very expensive Rx. She knows she’ll not only hit her deductible, she’ll hit her max OOP each year by April or May. She adds her 12 months of premium and her max OOP together for each option, and for her the high deductible (low premium) plan always has the lowest total cost as the difference in max OOP is more than offset by the premium savings and HSA tax benefits .

This is the way. In my case my company also chips in a bit to the HSA account, making it even more compelling. Been maxing it since it was available.

 

[Sand]

Open enrollment time at work. I've never done a high deductible plan because we spend a lot on medical expenses. How does the option of having an HSA change this?

How much time do you have? I’m a life/health insurance agent and would be happy to chat with you directly to discuss anything specific…

However it really comes down to a math problem. Look at the options you have and your expected medical expenses. See how much each plan will cost (over a year) for each plan, then add in the medical expenses for each (first part towards deductible, then rest to coinsurance percentage potentially up to the max out of pocket). You’ll more than likely save premium dollars going with the High Deductible (HSA) option, but more out of pocket expenses - see how much one offsets the other. Then take into account the tax benefits of the HSA if you plan on taking advantage of it (huge tax benefits!!). It definitely makes sense for my family as the tax breaks more than offset the additional out of pocket we have (we don’t typically have large medical expenses each year, but in those we do we blow past the deductible all the way up to the max OOP).

As an example for the above - I have a family member on a very, very expensive Rx. She knows she’ll not only hit her deductible, she’ll hit her max OOP each year by April or May. She adds her 12 months of premium and her max OOP together for each option, and for her the high deductible (low premium) plan always has the lowest total cost as the difference in max OOP is more than offset by the premium savings and HSA tax benefits .

Interesting. So those who benefit tend to fall on either end on the spectrum? I guess it depends on the max OOP vs expenses.

I've seen HSAs with humongous OOPs, so it must just be an artifact of the exact plans Matttyl has available.

 

[matttyl]

Open enrollment time at work. I've never done a high deductible plan because we spend a lot on medical expenses. How does the option of having an HSA change this?

How much time do you have? I’m a life/health insurance agent and would be happy to chat with you directly to discuss anything specific…

However it really comes down to a math problem. Look at the options you have and your expected medical expenses. See how much each plan will cost (over a year) for each plan, then add in the medical expenses for each (first part towards deductible, then rest to coinsurance percentage potentially up to the max out of pocket). You’ll more than likely save premium dollars going with the High Deductible (HSA) option, but more out of pocket expenses - see how much one offsets the other. Then take into account the tax benefits of the HSA if you plan on taking advantage of it (huge tax benefits!!). It definitely makes sense for my family as the tax breaks more than offset the additional out of pocket we have (we don’t typically have large medical expenses each year, but in those we do we blow past the deductible all the way up to the max OOP).

As an example for the above - I have a family member on a very, very expensive Rx. She knows she’ll not only hit her deductible, she’ll hit her max OOP each year by April or May. She adds her 12 months of premium and her max OOP together for each option, and for her the high deductible (low premium) plan always has the lowest total cost as the difference in max OOP is more than offset by the premium savings and HSA tax benefits .

Interesting. So those who benefit tend to fall on either end on the spectrum? I guess it depends on the max OOP vs expenses.

It really comes down to case by case examples. It also comes down to if you’re actually going to participate in the HSA, and to what amount, and what your tax bracket/benefit would be.

I just mean to say too often folks shop policies based on deductible alone, and really they need to look at the max OOP.

 

[matttyl]

Open enrollment time at work. I've never done a high deductible plan because we spend a lot on medical expenses. How does the option of having an HSA change this?

How much time do you have? I’m a life/health insurance agent and would be happy to chat with you directly to discuss anything specific…

However it really comes down to a math problem. Look at the options you have and your expected medical expenses. See how much each plan will cost (over a year) for each plan, then add in the medical expenses for each (first part towards deductible, then rest to coinsurance percentage potentially up to the max out of pocket). You’ll more than likely save premium dollars going with the High Deductible (HSA) option, but more out of pocket expenses - see how much one offsets the other. Then take into account the tax benefits of the HSA if you plan on taking advantage of it (huge tax benefits!!). It definitely makes sense for my family as the tax breaks more than offset the additional out of pocket we have (we don’t typically have large medical expenses each year, but in those we do we blow past the deductible all the way up to the max OOP).

As an example for the above - I have a family member on a very, very expensive Rx. She knows she’ll not only hit her deductible, she’ll hit her max OOP each year by April or May. She adds her 12 months of premium and her max OOP together for each option, and for her the high deductible (low premium) plan always has the lowest total cost as the difference in max OOP is more than offset by the premium savings and HSA tax benefits .

Interesting. So those who benefit tend to fall on either end on the spectrum? I guess it depends on the max OOP vs expenses.

I've seen HSAs with humongous OOPs, so it must just be an artifact of the exact plans Matttyl has available.

Like I said, it’s situation specific. Anthem here in Virginia has HDHP plans available with OOPs as low as 4,250 per person and as high as 8k per person. All depends on what plans your employer have. also, people often don’t realize how much they are paying over a year for their coverage with an employer as it could be done per paycheck. When you multiple that amount by 26 (if paid bi-weekly), they’re shocked at their annual expense, especially when covering dependents.

 

[NutterButter]

I thought the high deductible decision would be an easy one, but now I'm not quite sure. I was really expecting the premium difference would be higher. Its only 1680 between the high deductible plan and the plan I had this year which has no deductible and no coinsurance. For any year where you know you'll need a procedure like a colonoscopy, it probably doesn't make sense. Mine cost 3200; would have been higher if they found any polyps. So my deductible is 2500 with 70% coinsurance after that thus a total cost of 2650. On the flip side, if you put in the entire max of 4300 into the hsa you save 1032 (24% marginal rate) instead of just putting that in a roth. So assuming no other medical expenses, best you can do is roughly break even in that case.

On a related note, I love reading EOBs. The doctor be like I'm going to charge 1500. Insurance be like we will pay you 200 and you'll like it. ha.

 

[matttyl]

I thought the high deductible decision would be an easy one, but now I'm not quite sure. I was really expecting the premium difference would be higher. Its only 1680 between the high deductible plan and the plan I had this year which has no deductible and no coinsurance. For any year where you know you'll need a procedure like a colonoscopy, it probably doesn't make sense. Mine cost 3200; would have been higher if they found any polyps. So my deductible is 2500 with 70% coinsurance after that thus a total cost of 2650. On the flip side, if you put in the entire max of 4300 into the hsa you save 1032 (24% marginal rate) instead of just putting that in a roth. So assuming no other medical expenses, best you can do is roughly break even in that case.

On a related note, I love reading EOBs. The doctor be like I'm going to charge 1500. Insurance be like we will pay you 200 and you'll like it. ha.

Also a state tax break (5.25% here).

That 1,680 difference - if that for just you without any dependents? Would expect it to be higher for “employee plus family”.

And you say “instead of putting g in a Roth”? Why not both? You can contribute to a Roth and to the HSA and have ~$11k of tax free growth going forward forever with a $1k tax break today.

 

[NutterButter]

I thought the high deductible decision would be an easy one, but now I'm not quite sure. I was really expecting the premium difference would be higher. Its only 1680 between the high deductible plan and the plan I had this year which has no deductible and no coinsurance. For any year where you know you'll need a procedure like a colonoscopy, it probably doesn't make sense. Mine cost 3200; would have been higher if they found any polyps. So my deductible is 2500 with 70% coinsurance after that thus a total cost of 2650. On the flip side, if you put in the entire max of 4300 into the hsa you save 1032 (24% marginal rate) instead of just putting that in a roth. So assuming no other medical expenses, best you can do is roughly break even in that case.

On a related note, I love reading EOBs. The doctor be like I'm going to charge 1500. Insurance be like we will pay you 200 and you'll like it. ha.

Also a state tax break (5.25% here).

That 1,680 difference - if that for just you without any dependents? Would expect it to be higher for “employee plus family”.

And you say “instead of putting g in a Roth”? Why not both? You can contribute to a Roth and to the HSA and have ~$11k of tax free growth going forward forever with a $1k tax break today.

No tax break in NJ :( That premium difference is just for individual. Yeah, if you had the money, then the Roth IRA, hsa and hell the Roth 401k as well. The way I see it for me in any given year, with a max OOP of 8k, worse case, I could lose 5k (8k-3k (premium savings and tax bennies)) or make 3k if I had no medical issues. So the big question is am I feeling healthy in 2025.

 

[coopersdad]

I thought the high deductible decision would be an easy one, but now I'm not quite sure. I was really expecting the premium difference would be higher. Its only 1680 between the high deductible plan and the plan I had this year which has no deductible and no coinsurance. For any year where you know you'll need a procedure like a colonoscopy, it probably doesn't make sense. Mine cost 3200; would have been higher if they found any polyps. So my deductible is 2500 with 70% coinsurance after that thus a total cost of 2650. On the flip side, if you put in the entire max of 4300 into the hsa you save 1032 (24% marginal rate) instead of just putting that in a roth. So assuming no other medical expenses, best you can do is roughly break even in that case.

On a related note, I love reading EOBs. The doctor be like I'm going to charge 1500. Insurance be like we will pay you 200 and you'll like it. ha.

colonoscopies are usually considered screening and are usually covered at 100% if I'm not mistaken, especially if you are over 45 and do not have a history.

 

[NutterButter]

I thought the high deductible decision would be an easy one, but now I'm not quite sure. I was really expecting the premium difference would be higher. Its only 1680 between the high deductible plan and the plan I had this year which has no deductible and no coinsurance. For any year where you know you'll need a procedure like a colonoscopy, it probably doesn't make sense. Mine cost 3200; would have been higher if they found any polyps. So my deductible is 2500 with 70% coinsurance after that thus a total cost of 2650. On the flip side, if you put in the entire max of 4300 into the hsa you save 1032 (24% marginal rate) instead of just putting that in a roth. So assuming no other medical expenses, best you can do is roughly break even in that case.

On a related note, I love reading EOBs. The doctor be like I'm going to charge 1500. Insurance be like we will pay you 200 and you'll like it. ha.

colonoscopies are usually considered screening and are usually covered at 100% if I'm not mistaken, especially if you are over 45 and do not have a history.

Here I am thinking I got a great deal with my expensive insurance and now you're telling me any tom, **** and harry gets the same coverage. Let's hope this day turns around for me.

 

[Chemical X]

i came here with the hdhp vs ppo question and am seeking logic or a calculator for this. my premium difference seems severe, 353 x 24 vs 151 x 24, yielding a 4800- annual difference. i have to post my deductibles and oop max, but i am thinking logically that the hdhp is the obvious choice. is it all about the oop max here and tax avoidance?

 

[Sand]

i came here with the hdhp vs ppo question and am seeking logic or a calculator for this. my premium difference seems severe, 353 x 24 vs 151 x 24, yielding a 4800- annual difference. i have to post my deductibles and oop max, but i am thinking logically that the hdhp is the obvious choice. is it all about the oop max here and tax avoidance?

It's about taking into account your typical case and your worst case. If you get hit in a crosswalk and are in the hospital for a while what's your max OOP, including the savings from premiums for each? Also, if you're relatively healthy what's your typical outlay for healthcare per year? Are you ok with hitting max OOP if you tend to save most every year with the cheaper plan?

It's all a tradeoff and risk tolerance question.

 

[matttyl]

i came here with the hdhp vs ppo question and am seeking logic or a calculator for this. my premium difference seems severe, 353 x 24 vs 151 x 24, yielding a 4800- annual difference. i have to post my deductibles and oop max, but i am thinking logically that the hdhp is the obvious choice. is it all about the oop max here and tax avoidance?

Sounds to be that the high deductible is the obvious choice here. I doubt the OOP difference is 4,800 should you ever hit it. Moreover you’d have to account for the tax savings of the HSA.

 

[Chemical X]

i came here with the hdhp vs ppo question and am seeking logic or a calculator for this. my premium difference seems severe, 353 x 24 vs 151 x 24, yielding a 4800- annual difference. i have to post my deductibles and oop max, but i am thinking logically that the hdhp is the obvious choice. is it all about the oop max here and tax avoidance?

Sounds to be that the high deductible is the obvious choice here. I doubt the OOP difference is 4,800 should you ever hit it. Moreover you’d have to account for the tax savings of the HSA.

i am going to post my oop and deductibles tomorrow. only thing certain is that the PPO costs 30- per primary care visit or 40- for specialist, but many times x-rays and blood work are excluded and go towards deductible and my oop. what i am not mentioning is that i am likely out of country at least 6 months.

 

[matttyl]

i came here with the hdhp vs ppo question and am seeking logic or a calculator for this. my premium difference seems severe, 353 x 24 vs 151 x 24, yielding a 4800- annual difference. i have to post my deductibles and oop max, but i am thinking logically that the hdhp is the obvious choice. is it all about the oop max here and tax avoidance?

Sounds to be that the high deductible is the obvious choice here. I doubt the OOP difference is 4,800 should you ever hit it. Moreover you’d have to account for the tax savings of the HSA.

i am going to post my oop and deductibles tomorrow. only thing certain is that the PPO costs 30- per primary care visit or 40- for specialist, but many times x-rays and blood work are excluded and go towards deductible and my oop. what i am not mentioning is that i am likely out of country at least 6 months.

X-rays and blood work are never counted in the dr visit or specialist copay, they are always billed separately. The copay is just for the office visit.

 

[NutterButter]

My employer doesn't support hsa providers besides the one they've partnered with which is hsa bank. Does anyone that has an hsa regularly transfer out of their employers' hsa provider into another provider? If so anything I should be aware of like fees or limitations? Do you just do a transfer or a rollover or something else? Not certain I'll want/need to do this, but just in case. Thank you, thank you.

 

[SFBayDuck]

My employer doesn't support hsa providers besides the one they've partnered with which is hsa bank. Does anyone that has an hsa regularly transfer out of their employers' hsa provider into another provider? If so anything I should be aware of like fees or limitations? Do you just do a transfer or a rollover or something else? Not certain I'll want/need to do this, but just in case. Thank you, thank you.

I rolled over a former HSA to Fidelity, but that was a couple of years ago. I don't remember any real issues or fees or anything.

I'm considering moving most of my current HSA to Fidelity as well, just for the increased investment options. I'll probably look to do that this month, but haven't really looked into it yet.

 

[NutterButter]

My employer doesn't support hsa providers besides the one they've partnered with which is hsa bank. Does anyone that has an hsa regularly transfer out of their employers' hsa provider into another provider? If so anything I should be aware of like fees or limitations? Do you just do a transfer or a rollover or something else? Not certain I'll want/need to do this, but just in case. Thank you, thank you.

I rolled over a former HSA to Fidelity, but that was a couple of years ago. I don't remember any real issues or fees or anything.

I'm considering moving most of my current HSA to Fidelity as well, just for the increased investment options. I'll probably look to do that this month, but haven't really looked into it yet.

I see there's a transfer option (money moved directly from one provider to another) vs a rollover option (money sent to you which you must then deposit with provider) but not seeing an explanation of why you'd choose rollover when transferring seems a lot more streamlined. I do see there's potentially a transfer fee; not seeing anything about that when it comes to rollovers.

 

[dino259]

My employer doesn't support hsa providers besides the one they've partnered with which is hsa bank. Does anyone that has an hsa regularly transfer out of their employers' hsa provider into another provider? If so anything I should be aware of like fees or limitations? Do you just do a transfer or a rollover or something else? Not certain I'll want/need to do this, but just in case. Thank you, thank you.

I rolled over a former HSA to Fidelity, but that was a couple of years ago. I don't remember any real issues or fees or anything.

I'm considering moving most of my current HSA to Fidelity as well, just for the increased investment options. I'll probably look to do that this month, but haven't really looked into it yet.

I see there's a transfer option (money moved directly from one provider to another) vs a rollover option (money sent to you which you must then deposit with provider) but not seeing an explanation of why you'd choose rollover when transferring seems a lot more streamlined. I do see there's potentially a transfer fee; not seeing anything about that when it comes to rollovers.

I am in the process of transfering the bulk of mine from UMB to Fidelity. UMB is pretty pricy to move from a super low interest savings to their investment product. From my research, I believe you can only transfer once in a 12 month period. I believe HSA bank was above average as a provider but I think Fidelity was really good. I started the transfer 10/28 and UMB still has it in process.

 

[matttyl]

Interesting HSA question I’ve not come across yet. My buddy is divorced, 3 kids. Each year he gets to claim either 1 or 2 kids as his tax dependents, with his ex doing the same. He, though, carries all 3 on his company health insurance. We know for sure he can deposit up to the full family amount into the HSA each year, but can he pay eligible medical expenses for the kids that aren’t technically his tax dependents?

 

[Chadstroma]

Interesting HSA question I’ve not come across yet. My buddy is divorced, 3 kids. Each year he gets to claim either 1 or 2 kids as his tax dependents, with his ex doing the same. He, though, carries all 3 on his company health insurance. We know for sure he can deposit up to the full family amount into the HSA each year, but can he pay eligible medical expenses for the kids that aren’t technically his tax dependents?

I am confused... I thought you said he was claiming them? Or am I reading that wrong.

 

[matttyl]

Interesting HSA question I’ve not come across yet. My buddy is divorced, 3 kids. Each year he gets to claim either 1 or 2 kids as his tax dependents, with his ex doing the same. He, though, carries all 3 on his company health insurance. We know for sure he can deposit up to the full family amount into the HSA each year, but can he pay eligible medical expenses for the kids that aren’t technically his tax dependents?

I am confused... I thought you said he was claiming them? Or am I reading that wrong.

He claims either 1 or 2 of the three kids each year, and his ex wife claims the other one or two. So he doesn’t claim all three each year. He does, though, have all three on his insurance. So can he use his HSA funds for a child that isn’t a tax dependent of his?

 

[Chadstroma]

Interesting HSA question I’ve not come across yet. My buddy is divorced, 3 kids. Each year he gets to claim either 1 or 2 kids as his tax dependents, with his ex doing the same. He, though, carries all 3 on his company health insurance. We know for sure he can deposit up to the full family amount into the HSA each year, but can he pay eligible medical expenses for the kids that aren’t technically his tax dependents?

I am confused... I thought you said he was claiming them? Or am I reading that wrong.

He claims either 1 or 2 of the three kids each year, and his ex wife claims the other one or two. So he doesn’t claim all three each year. He does, though, have all three on his insurance. So can he use his HSA funds for a child that isn’t a tax dependent of his?

I do not believe so, I believe they must be a dependant im general... I am checking with my HSA guy (he sells/administrators HSA's to companies for the bank he works at) to double check for you though to see what he says.

 

[matttyl]

Interesting HSA question I’ve not come across yet. My buddy is divorced, 3 kids. Each year he gets to claim either 1 or 2 kids as his tax dependents, with his ex doing the same. He, though, carries all 3 on his company health insurance. We know for sure he can deposit up to the full family amount into the HSA each year, but can he pay eligible medical expenses for the kids that aren’t technically his tax dependents?

I am confused... I thought you said he was claiming them? Or am I reading that wrong.

He claims either 1 or 2 of the three kids each year, and his ex wife claims the other one or two. So he doesn’t claim all three each year. He does, though, have all three on his insurance. So can he use his HSA funds for a child that isn’t a tax dependent of his?

I do not believe so, I believe they must be a dependant im general... I am checking with my HSA guy (he sells/administrators HSA's to companies for the bank he works at) to double check for you though to see what he says.

Not that it really matters to the initial question - however he has remarried and now also carries his new wife’s 2 kids on his plan as well as her. As they now file jointly, those kids (who aren’t biological his) are his tax dependents, so if imagine he could use his HSA funds for their expenses?

 

[Chadstroma]

Interesting HSA question I’ve not come across yet. My buddy is divorced, 3 kids. Each year he gets to claim either 1 or 2 kids as his tax dependents, with his ex doing the same. He, though, carries all 3 on his company health insurance. We know for sure he can deposit up to the full family amount into the HSA each year, but can he pay eligible medical expenses for the kids that aren’t technically his tax dependents?

I am confused... I thought you said he was claiming them? Or am I reading that wrong.

He claims either 1 or 2 of the three kids each year, and his ex wife claims the other one or two. So he doesn’t claim all three each year. He does, though, have all three on his insurance. So can he use his HSA funds for a child that isn’t a tax dependent of his?

I do not believe so, I believe they must be a dependant im general... I am checking with my HSA guy (he sells/administrators HSA's to companies for the bank he works at) to double check for you though to see what he says.

Not that it really matters to the initial question - however he has remarried and now also carries his new wife’s 2 kids on his plan as well as her. As they now file jointly, those kids (who aren’t biological his) are his tax dependents, so if imagine he could use his HSA funds for their expenses?

Yes, to my understanding (not an expert here) it is based on tax status and not insurance or related status. Think of it this way... HSA is a tax vehicle. The benefits are all tax related. But I will let you know what my HSA expert says when he gets back to me.

 

[Chadstroma]

Interesting HSA question I’ve not come across yet. My buddy is divorced, 3 kids. Each year he gets to claim either 1 or 2 kids as his tax dependents, with his ex doing the same. He, though, carries all 3 on his company health insurance. We know for sure he can deposit up to the full family amount into the HSA each year, but can he pay eligible medical expenses for the kids that aren’t technically his tax dependents?

I am confused... I thought you said he was claiming them? Or am I reading that wrong.

He claims either 1 or 2 of the three kids each year, and his ex wife claims the other one or two. So he doesn’t claim all three each year. He does, though, have all three on his insurance. So can he use his HSA funds for a child that isn’t a tax dependent of his?

I do not believe so, I believe they must be a dependant im general... I am checking with my HSA guy (he sells/administrators HSA's to companies for the bank he works at) to double check for you though to see what he says.

Not that it really matters to the initial question - however he has remarried and now also carries his new wife’s 2 kids on his plan as well as her. As they now file jointly, those kids (who aren’t biological his) are his tax dependents, so if imagine he could use his HSA funds for their expenses?

Yes, to my understanding (not an expert here) it is based on tax status and not insurance or related status. Think of it this way... HSA is a tax vehicle. The benefits are all tax related. But I will let you know what my HSA expert says when he gets back to me.

Confirmed... his reply (I so smart!):

hsa coverage is tax dependent. e.g. divorced couple. if you do not claim them on your taxes means no hsa coverage. if you do then yes. it can alternate year to year as well.

 

[McBokonon]

My employer doesn't support hsa providers besides the one they've partnered with which is hsa bank. Does anyone that has an hsa regularly transfer out of their employers' hsa provider into another provider? If so anything I should be aware of like fees or limitations? Do you just do a transfer or a rollover or something else? Not certain I'll want/need to do this, but just in case. Thank you, thank you.

I transfer money from my employer-sponsored HSA (Optum) to my Fidelity HSA whenever I have about $1000 or so in the Optum HSA (completely arbitrary dollar choice). I initiate at Fidelity online. No other issues to consider other than I make sure I tell Fidelity I am not transferring the entire account over whenever that choice in the process comes up.

 

[SFBayDuck]

My employer doesn't support hsa providers besides the one they've partnered with which is hsa bank. Does anyone that has an hsa regularly transfer out of their employers' hsa provider into another provider? If so anything I should be aware of like fees or limitations? Do you just do a transfer or a rollover or something else? Not certain I'll want/need to do this, but just in case. Thank you, thank you.

I transfer money from my employer-sponsored HSA (Optum) to my Fidelity HSA whenever I have about $1000 or so in the Optum HSA (completely arbitrary dollar choice). I initiate at Fidelity online. No other issues to consider other than I make sure I tell Fidelity I am not transferring the entire account over whenever that choice in the process comes up.

I assume the money is not invested at Optum, just sitting in cash?

ETA: I poked around, and yes I have to have it in cash in Navia (my HSA provider), and then it looks like I can trigger directly from Fidelity. So I just set up a transfer from my Navia investment account back to the core account of a little of my total to see how it all goes down.

 

[matttyl]

Interesting HSA question I’ve not come across yet. My buddy is divorced, 3 kids. Each year he gets to claim either 1 or 2 kids as his tax dependents, with his ex doing the same. He, though, carries all 3 on his company health insurance. We know for sure he can deposit up to the full family amount into the HSA each year, but can he pay eligible medical expenses for the kids that aren’t technically his tax dependents?

I am confused... I thought you said he was claiming them? Or am I reading that wrong.

He claims either 1 or 2 of the three kids each year, and his ex wife claims the other one or two. So he doesn’t claim all three each year. He does, though, have all three on his insurance. So can he use his HSA funds for a child that isn’t a tax dependent of his?

I do not believe so, I believe they must be a dependant im general... I am checking with my HSA guy (he sells/administrators HSA's to companies for the bank he works at) to double check for you though to see what he says.

Not that it really matters to the initial question - however he has remarried and now also carries his new wife’s 2 kids on his plan as well as her. As they now file jointly, those kids (who aren’t biological his) are his tax dependents, so if imagine he could use his HSA funds for their expenses?

Yes, to my understanding (not an expert here) it is based on tax status and not insurance or related status. Think of it this way... HSA is a tax vehicle. The benefits are all tax related. But I will let you know what my HSA expert says when he gets back to me.

Confirmed... his reply (I so smart!):

hsa coverage is tax dependent. e.g. divorced couple. if you do not claim them on your taxes means no hsa coverage. if you do then yes. it can alternate year to year as well.

He had a followup question given your answer, and it might just be cheat code….”does this mean I could open (and fund) an HSA for each child who isn’t my tax dependent but is my insurance dependent?” I guess that assumes his ex wife (the kids mom) doesn’t have an HSA herself.

 

[Chadstroma]

He had a followup question given your answer, and it might just be cheat code….”does this mean I could open (and fund) an HSA for each child who isn’t my tax dependent but is my insurance dependent?” I guess that assumes his ex wife (the kids mom) doesn’t have an HSA herself.

I believe not. If they are claimed by someone else then he would not be able to but if he then claims them he can. I would assume that would be for contributions as well. There is a family maximum though and of course they must all be under a HDHP. I can ask my buddy to double check my work though.

ETA:

Actually, no, I re-read that.... there is no ''insurance dependent". The HSA is a tax vehicle so everything about it is about taxes. You must qualify for the tax benefits by being covered by a HDHP but the dependent is all about being a tax dependent.

 

[McBokonon]

My employer doesn't support hsa providers besides the one they've partnered with which is hsa bank. Does anyone that has an hsa regularly transfer out of their employers' hsa provider into another provider? If so anything I should be aware of like fees or limitations? Do you just do a transfer or a rollover or something else? Not certain I'll want/need to do this, but just in case. Thank you, thank you.

I transfer money from my employer-sponsored HSA (Optum) to my Fidelity HSA whenever I have about $1000 or so in the Optum HSA (completely arbitrary dollar choice). I initiate at Fidelity online. No other issues to consider other than I make sure I tell Fidelity I am not transferring the entire account over whenever that choice in the process comes up.

I assume the money is not invested at Optum, just sitting in cash?

ETA: I poked around, and yes I have to have it in cash in Navia (my HSA provider), and then it looks like I can trigger directly from Fidelity. So I just set up a transfer from my Navia investment account back to the core account of a little of my total to see how it all goes down.

Yes, it’s cash. That sounds good. It does usually take several weeks.

 

[SFBayDuck]

My employer doesn't support hsa providers besides the one they've partnered with which is hsa bank. Does anyone that has an hsa regularly transfer out of their employers' hsa provider into another provider? If so anything I should be aware of like fees or limitations? Do you just do a transfer or a rollover or something else? Not certain I'll want/need to do this, but just in case. Thank you, thank you.

I transfer money from my employer-sponsored HSA (Optum) to my Fidelity HSA whenever I have about $1000 or so in the Optum HSA (completely arbitrary dollar choice). I initiate at Fidelity online. No other issues to consider other than I make sure I tell Fidelity I am not transferring the entire account over whenever that choice in the process comes up.

I assume the money is not invested at Optum, just sitting in cash?

ETA: I poked around, and yes I have to have it in cash in Navia (my HSA provider), and then it looks like I can trigger directly from Fidelity. So I just set up a transfer from my Navia investment account back to the core account of a little of my total to see how it all goes down.

Yes, it’s cash. That sounds good. It does usually take several weeks.

Why do we still have these delays (and doesn't blockchain fix this???). I submitted a request on Tuesday to transfer just within Navia from the investment account back to cash in the HSA so that I can transfer it to Fidelity. It's still a "Hold" status so it's not invested, I can't transfer it to get it invested. It's just sitting there, stuck. That's why I just did like 10% of my account to see what the experience is like. I mean I guess I get why they make it hard to get money out, but this would be the same poor experience if I needed it for a medical bill.

 

[jm192]

More IVF goodness.

The clinic kind of goofed. The financials lady told us we didn't have time to bill insurance because we were starting a cycle in a day or 2. Then she turned around and billed insurance. Insurance covered it all except for 400$.

We've been going back and forth with the clinic for 3 months trying to get the refund. We got over 10,000$ back yesterday.

 

[jamny]

I invest about 80% of our HSA in ETF's. I'm considering using some more cash.
In looking at my allocation, it seems I'm light on Energy, Basic Materials, and Utilities. Any recommended ETF's to look at in those sectors?
or
I'm also considering going with AVUV for some small cap exposure instead. Would that be a better option?

 

[SFBayDuck]

I invest about 80% of our HSA in ETF's. I'm considering using some more cash.
In looking at my allocation, it seems I'm light on Energy, Basic Materials, and Utilities. Any recommended ETF's to look at in those sectors?
or
I'm also considering going with AVUV for some small cap exposure instead. Would that be a better option?

I love me some AVUV. It is actively managed, but costs are still relatively low and with their focus on profitability, size (smaller), and value (more value-y) as opposed to just following an index they seem likely to continue to outperform. IMHO.

 

[Sand]

In looking at my allocation, it seems I'm light on Energy, Basic Materials, and Utilities. Any recommended ETF's to look at in those sectors?

XLE, XLB, XLU

 

[ConstruxBoy]

Interesting article on Morningstar today: Link

 

[Sand]

Interesting article on Morningstar today: Link

I laugh at this one - we're talking about a Congress that can't even put in Daylight Savings Time. They aren't going to upend the tax system.

• Finally, and perhaps most importantly, the potential tax benefits for Roth accounts only work out if the US maintains its tax system in the future. If we shift to a broader-based sales tax, raising more money through tariffs, or dozens of other plausible changes in how federal, state, and local governments raise revenue, the Roth benefits might be worth much less in the future.

 

[-OZ-]

I invest about 80% of our HSA in ETF's. I'm considering using some more cash.
In looking at my allocation, it seems I'm light on Energy, Basic Materials, and Utilities. Any recommended ETF's to look at in those sectors?
or
I'm also considering going with AVUV for some small cap exposure instead. Would that be a better option?

I love me some AVUV. It is actively managed, but costs are still relatively low and with their focus on profitability, size (smaller), and value (more value-y) as opposed to just following an index they seem likely to continue to outperform. IMHO.

Sure hope so. It’s my largest holding, with about 12% of our investments. We have more US large cap than small but that’s split mostly between C fund, VOO and VUG, along with smaller amounts in RPV, AVUS, and VTV.

 

[steelerfan1]

So, we are mostly in VTSAX (total us market) and VBTLX (total bond) Index funds. I now see that Vangaurd allows auto ETF investments. I see that VTI is .03 ER compared to the .04 of VTSAX, but is there any benefit of us switching to ETF's from Index?

 

[Sand]

So, we are mostly in VTSAX (total us market) and VBTLX (total bond) Index funds. I now see that Vangaurd allows auto ETF investments. I see that VTI is .03 ER compared to the .04 of VTSAX, but is there any benefit of us switching to ETF's from Index?

Is this taxable or tax deferred?

 

[Nugget]

So, we are mostly in VTSAX (total us market) and VBTLX (total bond) Index funds. I now see that Vangaurd allows auto ETF investments. I see that VTI is .03 ER compared to the .04 of VTSAX, but is there any benefit of us switching to ETF's from Index?

I would not pay cap gains to swap from one to the other. If it is in an IRA, I guess it is personal preference. If starting out now, I'd likely go ETF - especially if they can auto invest and allow partial share purchases. ETFs are also more transportable should you leave Vanguard in the future - although I think they added an account closing fee in 2024.

 

[ConstruxBoy]

What is the current thinking on I Bonds? Anyone buying?

 

[steelerfan1]

So, we are mostly in VTSAX (total us market) and VBTLX (total bond) Index funds. I now see that Vangaurd allows auto ETF investments. I see that VTI is .03 ER compared to the .04 of VTSAX, but is there any benefit of us switching to ETF's from Index?

Is this taxable or tax deferred?

Tax deferred