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Old 12-07-2017, 08:53 AM   #6
chrisinhouston
Professor
 
Join Date: Sep 2001
Location: Houston TX
Posts: 1,857
Quote:
Originally Posted by Beest View Post
Interesting you can pre load your HSA like that as starters, in subsequent years your limited on Monthly contributions, the total is about $6500 this year.

I don't think you can have an HSA and FSA, double dipping on tax deduction.

Those plans seem weird to me, ones I have encounterd have a deductible where you pay everything ($1800 to qulaify for HSA), then you pay 20% up to a maximum ( $6500 ish to qulaify for HSA), then you are covered 100%

$1000 a month premium !, also company pays and no premium also!
>>>>>>>>>>>>>>>>>>>>>>>

The IRS has a special rule called "the 12th month rule", leave it to my wife to do the research and find this kind of stuff, even the insurance agent and our financial advisior were unaware that if the plan begins in the 12th month as ours does you can fully fund it for the year in that month. For most that is $6750 this year but if you are over 55 you can deposit an extra $1000 which we will do. Then in January we just fund the year in monthly amouts. For us there is the tax break we can claim for this year which we really need and then we start the year with the max in the account should we have some major medical up at the front of the year and whatever we don't use carries over. There is also a provision when we are retired that we can roll over the HSA to a higher earning investment account like an IRA. Luckily she brings home enough in each month that we can live with 2 tiny paychecks and use money in savings.

They are allowing those on the Silver Plan to have an HSA which the company will match a $500 donation once we put in the first $1000 which is nice. They also offer the FSA. The HSA can be used for all health costs including dental and vision but the FSA can only be used for Dental and Vision and nothing else, and we can only carry over $500. And The FSA works differently that the HSA. You set up what yo want to contribute to each plan and it is taken out of your paychecks. The HSA will grow during the year each month so other than this 12 month rule allowing us to fund we will fund month by month starting in Jaunary. As I said we get the benefit of the tax write off and having a full account to start the year. The FSA works differently, you estimate how much you will spend in a year for dental and vision and set up a paycheck deductions. But the FSA is fully funded on January 1st and you are just paying into it and the company handling the FSA is reimbursed. Carrying over $500 is nice as or you could do some last minute dental or vision as the year draws to an end.

Sarah and I are at the point in life were we have decent teeth but probably have a few that should have crowns in lo of the old fillings. I sill have some old amalgam ones as well as a 4 tooth lower front bridge I had put in 44 years ago when I was in a bike accident at age 17 and is showing some wear We want to get as much done on dental and vision while we still have the coverage through work. I know there are some after retirement plans but they are not always as good.
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