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So, What About health Savings Accounts?

Ben Carson

Last week, Sean Hannity introduced us (well, me anyway) to a wonderful gentleman named Ben Carson. Ben is a pediatric neurosurgeon (!!!), a pretty smart fella, soft-spoken yet convincing, and apparently very conservative (although, upon reflection, I’m not quite sure if you can categorize some of his ideas as either left or right leaning).

Ben has also become quite famous for disrupting the recent White House prayer breakfast with… wait for it…. logic and reason. Although they started out sitting by each other at the main table, you could see the change in the president’s demeanor as Mr. Carson very gently and politely dismantled everything this current administration stands for. It was priceless. (Uh oh, watch out for the “black” conservative).

First, Ben looks to the Bible for inspiration about how to fix the current tax system – tithing. Or, in our case, a fair, flat tax. It is so simple and elegant – exempt the first $20,000 (or some number) of income to lessen the burden on the truly poor, and tax everyone at the same rate above that. No deductions, no questions, no bullshit. And, after it’s in place, nobody would be able to claim “the rich” aren’t doing their fair share because their effective rate is lower – because it won’t be. As Ben puts it – “everyone has skin in the game”.

Personally, I’ve long been a flat-tax advocate. When the income tax system was originally put into place, the highest rate (well, I guess THE rate) was a whopping one percent! Then, the socialists got involved and because they were slaves to their feeeeeelings decided a “progressive” (in reality regressive) tax rate was the most “fair”. Let’s fix that ASAP.

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Another great idea, the best as far as I’m concerned, is to create Health Savings Accounts for every man, woman, and child citizen of these United States; and to start redirecting some of the money wasted on Medicare, ‘Caid, and ObamaCare into these accounts. In other words, just as any child is automatically adopted into the Social Security system (which will never go away completely), he or she will also automatically be assigned an HSA to do with as he/she can for medical expenses. Certainly it won’t cover everything instantly, but with enough smart planning (Mr. Carson is all about personal responsibility), it could definitely work over the long haul without bankrupting the country.

Health Savings Accounts

Currently, this is how an HSA works. You can deposit money into a special non-taxed, interest-gaining savings account that must be used for medical expenses. The ideal situation for an HSA is to combine the account with a low-cost, high-deductible insurance plan (or catasrephic coverage insurance). The savings account is designed to allow you to cover the high deductible if you find the need to cover expensive medical costs while the insurance company will pick up the rest of the bill.

If you don’t have to use the funds, it rolls over every year. Once you reach age 65, you no longer are required to use it for medical expenses, although you certainly can; you can withdraw funds under the same conditions as a regular IRA. Although you will be penalized if you use the funds for non-medical expenses prior to age 65, you can use the money for vision care, alternative medicine or treatment and dental care.

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Under Mr. Carson’s plan, any money left in the HSA can be willed to whomever upon death. This removes the “use it or lose it” mentality from the plan.

So, why not an HSA plan? Sure beats anything socialized medicine has to offer.

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Comments

    • Charmedchicprue
    • December 8, 2013
    Reply

    We Have A Health Savings Account But Don’t Qualify For It? I opened a health savings account for my husband and I, but found out about a week later that our health insurance apparently isn’t a qualifying provider. It confused me, as our health costs are through the roof, but we have Tricare (he’s active duty army). My question is: what consequences are we looking at and how can we avoid them?

    View Comment
    1. Reply

      You must contact the plan custodian and close the account. Any contributions are ‘excess’ and you need to get them returned as they ware subject to a 6% excise tax.

      View Comment
    • Charmedchicprue
    • December 27, 2013
    Reply

    We Have A Health Savings Account But Don’t Qualify For It? I opened a health savings account for my husband and I, but found out about a week later that our health insurance apparently isn’t a qualifying provider. It confused me, as our health costs are through the roof, but we have Tricare (he’s active duty army). My question is: what consequences are we looking at and how can we avoid them?

    View Comment
      • Admin
      • December 27, 2013
      Reply

      You must contact the plan custodian and close the account. Any contributions are ‘excess’ and you need to get them returned as they ware subject to a 6% excise tax.

      View Comment
    • Charmedchicprue
    • December 28, 2013
    Reply

    We Have A Health Savings Account But Don’t Qualify For It? I opened a health savings account for my husband and I, but found out about a week later that our health insurance apparently isn’t a qualifying provider. It confused me, as our health costs are through the roof, but we have Tricare (he’s active duty army). My question is: what consequences are we looking at and how can we avoid them?

    View Comment
      • Admin
      • December 28, 2013
      Reply

      You must contact the plan custodian and close the account. Any contributions are ‘excess’ and you need to get them returned as they ware subject to a 6% excise tax.

      View Comment
    • Charmedchicprue
    • January 16, 2014
    Reply

    We Have A Health Savings Account But Don’t Qualify For It? I opened a health savings account for my husband and I, but found out about a week later that our health insurance apparently isn’t a qualifying provider. It confused me, as our health costs are through the roof, but we have Tricare (he’s active duty army). My question is: what consequences are we looking at and how can we avoid them?

    View Comment
    1. Reply

      You must contact the plan custodian and close the account. Any contributions are ‘excess’ and you need to get them returned as they ware subject to a 6% excise tax.

      View Comment
    • Bing B
    • January 30, 2014
    Reply

    Can I Use Health Savings Account For Latisse? I would like to purchase Latisse from a doctor. Does the doctor have to give me a prescription in order to purchase with my Health Savings Account money? Or does the charge simply need to come from the doctor’s office?

    View Comment
    1. Reply

      I do not believe any health savings account would pay for make-up and health insurance does not pay for cosmetic surgery. Latisse is a cosmetic product that enhances eyelashes, so it would not be a legitimate medical or pharmacy expense. I would cover all my bases and get the paid invoice and a prescription and hope your Health Savings Account pays it. If you have partial eye lash loss due to disease or injury and the doctor state that on the script, you would probably have better luck in getting reimbursed from your HSA.

      View Comment
    • Anonymous
    • February 4, 2014
    Reply

    Tell Me About Health Savings Accounts? I understand one must have a high deductible health insurance or you cant get the tax break. Is that right ?

    How much can one put in per year ? Does it have to be from earned income or can it be interest, dividends & capital gains ?

    View Comment
    1. Reply

      You need to have a QUALIFIED high deductible health insurance plan.

      In 2011, the maximum account for a single person is $3,050, and for a family is $6,150. It doesn’t have to be from earned income.

      View Comment
    • Guitar_girl1988
    • February 11, 2014
    Reply

    Is A Health Savings Account A Good Benefit? I have been employed at my job for over three years. within the last 6 months, they promised to get me insurance. But, the insurance amount that they agreed to pay is not even worth having. Therefore, I began looking into Health Savings Accounts and that sort of thing. I don’t know much about them. Does anyone else have one, are they beneficial, and how do they work?

    View Comment
      • Admin
      • February 11, 2014
      Reply

      Health savings accounts are welfare for the rich.

      View Comment
    • Emory
    • February 18, 2014
    Reply

    What Is The Best Institution To Open A Health Savings Account? My employer just started offering a high deductible health plan and it seems like a good idea – it is half the cost of the other offered plans (~$30 each pay period); I am relatively young and don’t get sick very often (knock on wood); I have a nice size savings to cover deductibles in case of emergency; and if something bad were to happen, after $2500 out-of-pocket (per year), everything is covered at 100%. This is, of course, if I understand it correctly. Anyway, with this plan I can also contribute pre-tax money to a Health Savings Account (HSA). The money can be used for health care related expenses and rolls over from year to year. Similar to an IRA? So, theoretically, if I start contributing now while I don’t have a lot of health related expenses, I will have money saved for the future… The only problem I have at this point is finding an bank or credit union that offers a HSA plan with reasonable rates and no restrictions. For example, a HSA account at Citibank charges a $15 opening fee, $2 monthly maintenance fees and a $25 closing fee – this seems a bit outrageous to me. I have found some credit unions that have no fees and also pay 5% interest – this sounds excellent except that to joining the credit unions requires that you work for a particular employer, live in a certain area or go to a specific church. So, my question is this – has anyone found a bank, credit union, brokerage, or insurance company that offers HSA-type accounts with no fees and pays a decent interest rate and delivers no restrictions on membership? Thanks for your help!

    View Comment
      • Admin
      • February 18, 2014
      Reply

      First I commend you on your decision. Simply from a practical matter you are saving $60/month on premiums you previously would have been throwing out the window. In ten years this would amount to $7,200 you would have donated to the insurance company, instead you will be able to spend it on your own needs.
      Most plans work exactly as you have described with the $2500 deductible being the worst case out of pocket exposure for the plan year and then everything else covered at 100%. Plans also typically have some first dollar benefits (without having to meet the deductible) for preventitive services such as annual exam, related lab services, child immunizations, etc.
      I personally have my HSA account at American Chartered Bank. They offer a no fee HSA account with debit card and online bill pay. They also offer a CD and mutual fund investing account (small fee)to earn high returns as you grow the balance in your HSA.
      There are many other benefits to building a large balance in your health savings account over your lifetime such as greater flexibility in choosing insurance plans in the future and negotiating significant discounts on high dollar services. You also are able to use the balance in your HSA for retirement after the age of 65 and to purchase long term care insurance tax free to name a few. An HSA is the only truely tax gree account you will ever own.

      View Comment
    • Scorpiomaj27
    • February 18, 2014
    Reply

    What’s Up With Health Savings Accounts? I’ve read the wikipedia, IRS site, etc and still have questions. An answer to even just part would be greatly appreciated:

    1. I’ve read the yearly limit is around $2900, is that CONTRIBUTION limit or a BALANCE limit?

    2. What is my (essentially) lifetime limit? In other words, if during year 1 I spend $0, then by the end of year 2, I could theoretically (if nothing changes) have a balance of $5,800, correct?

    3. If I have some kind of emergency and need to tap into that money, HOW do I pay the tax/penalty on it?

    3b. How much of a penalty are we talking about?

    4. Considering my HDHP has a $3000 yearly out of pocket maximum. Can the Health Insurance carrier ‘see’ my other costs (that it will not pay anything for), such as lasik, and can that be subtracted for my out of pocket maximum purposes?

    4b. So this must mean that my insurance company somehow can see my HSA balance and transactions? That doesn’t seem to make sense.

    5. How closely does the IRS watch?

    View Comment
      • Admin
      • February 18, 2014
      Reply

      1. Contribution limit. The balance is unlimited.

      2. No limit (until the rules change, that is).

      3. There is a line item on tax forms for these types of withdrawals. Same as with withdrawals from retirement accounts (401(k), IRA).

      3b. Regular income tax +10% penalty.

      4. They will only see what goes through them, and for this reason, you’re supposed to channel some stuff through them even if they’re not going to pay it. Everything that they would count into the out-of-pocket expenses should go through them (but not everything that goes through them is counted — see your plan literature).

      4b. Nope, the insurance company doesn’t have access to that, and doesn’t even know if or where you have the HSA account.

      5. HSA is a relatively new thing, I’m not sure anyone knows.

      A couple of additional points that you may not be aware of:

      a) After age 65, you can withdraw money from HSA for non-medical purposes and pay no penalty (income tax will still need to be paid — similar to an IRA).

      b) If you become ineligible for HSA (e.g. you go to an insurance plan with regular, not high, deductible), you’ll lose the ability to contribute to the HSA, but you can still take money from it for medical expenses tax-free and pentalty-free, until you spend it all.

      View Comment
    • Kristy
    • February 21, 2014
    Reply

    Health Savings Account Over Traditional Health Insurance?? Are the benefits greater for HSAs than regular health insurance? I know there are some tax benefits but are there any downfalls except the high deductible??

    View Comment
      • Admin
      • February 21, 2014
      Reply

      I’m amazed of how many people don’t understand HSAs (or qualfied high deductible plans). First to be clear the health plan itself is a QHDP (Qualified High Deductible Plan) which by having one allows you to open an HSA (Health Savings Account). We all call the plan the HSA which is technically not correct, but that’s ok. It’s important to know that you can’t have an HSA without a QHDP, but you can have a QHDP without the HSA.

      I have a blog on my site titled “What’s the Total Monthly Cost of Your Health Plan” which goes into this (below) a little bit.

      Of course for my example that follows state to state and company to company it’ll be different. But let’s assume that as a family you could get (for easy math) a $3600 deductible QHDP and after the $3600 everything (drugs, hospital, doctors, etc…) was covered 100%. And let’s assume that this plan cost $250/month. So, if you paid for the qualified health plan at $250/month and then turned around and put $300/month into your HSA (or stuck $3600 in up front) your total monthly cost is $550. If you think about it even if you could get an HMO which has no dedeductibles for the same $550 per month it wouldn’t make any sense to do so. With the HMO if you go to the doctor you’re going to have to come out of pocket OVER AND ABOVE the $550 for the copays, etc… BUT with the HSA you won’t come out of pocket in addition to the $550. When you go to the doctor you’ll pull it from the savings account.

      So if you go to the doctor a bunch you could eat through the account and hit the insurance and if you don’t use it much at all your money in the savings account stays there.

      So, these notions of it’s not good if you use it a lot or it’s not good if you hardly ever go to the doctor make absolutely no sense. What make sense is doing the math to figure out which plan makes more sense if over the course of a year you A) don’t get sick at all, B) rack up moderate to low bills of $1,000, C) $10,000 of bills and D) $250,000 in bills. In my state for scenarios A, B, C, AND D it makes sense to do the HSA every time because your MEDICAL expenses will be lower. It’s also the case in my state that the HSA plans actually have richer benefits than the non-HSA plans. For example the same PPO plan from Blue Cross covers up to $3,000,000 in prescriptions, but the regular non-hsa PPO only covers $1,500 per year. That’s a huge benefit and the total cost when analyzing both plans is lower for the HSA.

      So do the math and figure it out. Because I will say that around 1999/2000 when HSAs were still MSAs they made no sense here because the cost of a $5000 deductible MSA was the same price as a $500 deductible plan.

      For the most part, unless you’re choosing a stripped down HSA plan, the ONLY downside to the HSA is if you get the plan this week and fall down the stairs next week and haven’t put a single dime into the plan yet. SO, yes that is a risk getting out of the gate, but I’ll also say that I had surgery 3 (THREE) months ago and I haven’t written a single check yet. I haven’t even seen the anesthesiologist’s bill yet. I like to wait until I get all my bills before I write checks to make sure they’re right and match the EOBs (explanation of benefits). The point being is that risk is no big deal, because even now if I was faced with large bills I could pay them in payments or put it on a credit card. The HSA tax savings would more than make up for any interest if I used a credit card.

      Anyway, just do the math and see what makes sense to you. I think HSAs are phenomenal ways to pay for health care and I wish HR departments would get on the ball and make them more readily available to their employees.

      Good luck and I hope that helped,

      Jeff

      View Comment
    • Near
    • February 24, 2014
    Reply

    Is There Such Thing As A Health-care Savings Account? Say your job comes with health-care benefits…instead of that, you could get the extra cash to put directly into your health-care savings account.

    That way, if anything happens, the money stacks up, and you could pay for your own health-care directly.

    Is there anything like that, and should there be anything like that around?

    View Comment
      • Admin
      • February 24, 2014
      Reply

      The way it normally works is you put money into the savings account to cover non-reimbursed expenses. I seem to recall that the time I looked into it, you put the money in and if you didn’t spend it, it didn’t roll over. Hopefully they have changed them, but at that time it made no sense. ??)

      View Comment
    • Jaypez77
    • February 26, 2014
    Reply

    Should I Enroll In A Health Savings Account? Right now at work I’m enrolled in an HMO Plan as well as a dental plan. I am a 30 year old single male with no health problems at the moment. I only go to the doctor for a yearly physical, and I go to the dentist twice a year for a cleaning (I’m not sure if the dentist part is relevant). I’m paying almost $1,000 in medical and dental premiums combined, plus co-payments of $20 when I go for a physical.

    Would the HSA offered by my employer make sense for someone like me? I figured that even if the total yearly cost ends up being the same, at least that money will be mine and not lost to the insurance companies, plus I will get contributions from my employer. Am I thinking about this in the right way, or should I be considering other factors as well?

    View Comment
      • Admin
      • February 26, 2014
      Reply

      Do the math but almost always if you plan on sticking with the HSA long term (more than 3 years) and you max out your annual contributions to the account then you will be better off with the HSA.

      The HSA also becomes more and more valuable as a tax benefit with the more money that you make as well.

      Here is some more information on Health Savings Accounts:

      View Comment
    • Guitar_girl1988
    • March 15, 2014
    Reply

    Is A Health Savings Account A Good Benefit? I have been employed at my job for over three years. within the last 6 months, they promised to get me insurance. But, the insurance amount that they agreed to pay is not even worth having. Therefore, I began looking into Health Savings Accounts and that sort of thing. I don’t know much about them. Does anyone else have one, are they beneficial, and how do they work?

    View Comment
    1. Reply

      Health savings accounts are welfare for the rich.

      View Comment
    • Near
    • April 12, 2014
    Reply

    Is There Such Thing As A Health-care Savings Account? Say your job comes with health-care benefits…instead of that, you could get the extra cash to put directly into your health-care savings account.

    That way, if anything happens, the money stacks up, and you could pay for your own health-care directly.

    Is there anything like that, and should there be anything like that around?

    View Comment
    1. Reply

      The way it normally works is you put money into the savings account to cover non-reimbursed expenses. I seem to recall that the time I looked into it, you put the money in and if you didn’t spend it, it didn’t roll over. Hopefully they have changed them, but at that time it made no sense. ??)

      View Comment
    • Pat S
    • April 13, 2014
    Reply

    What Is The Health Savings Account? I chose an insurance plan at work that is a high deductible plan. I have been sent a letter if I want a health savings account? What is this? Help me please.

    View Comment
    1. Reply

      A Health Savings Account does not replace insurance–you must have a certain insurance policy in place (with a high deductible) in addition to the Health Savings Account which is your money deposited into a special bank account used to pay deductibles. You get tax savings on the money deposited into this account but there are restrictions of the withdrawal and high penalties if you withdraw outside the guidelines for the account.

      I’ve listed below the link for Wickipedia article on Health Savings Accounts and another source as well. I’ve also listed a couple links to discussions of the pros and cons of the HSA, which are also excellent.

      Wickipedia says:
      A health savings account (HSA), is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP). The funds contributed to the account are not subject to federal income tax at the time of deposit. Unlike a flexible spending account (FSA), funds roll over and accumulate year to year if not spent. HSAs are owned by the individual, which differentiates them from the company-owned Health Reimbursement Arrangement (HRA) that is an alternate tax-deductible source of funds paired with HDHPs. Funds may be used to pay for qualified medical expenses at any time without federal tax liability. Withdrawals for non-medical expenses are treated very similarly to those in an IRA in that they may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier. These accounts are a component of consumer driven health care.

      Proponents of HSAs believe that they are an important reform that will help reduce the growth of health care costs and increase the efficiency of the health care system. According to proponents, HSAs encourage saving for future health care expenses, allow the patient to receive needed care without a gate keeper to determine what benefits are allowed and make consumers more responsible for their own health care choices through the required High-Deductible Health Plan.

      Opponents of HSAs say they worsen, rather than improve, the U.S. health system’s problems because people who are healthy will leave insurance plans while people who have health problems will avoid HSAs. There is also debate about consumer satisfaction with these plans.

      View Comment
    • Elinq
    • May 9, 2014
    Reply

    High Deductible Plan With Health Savings Account Questions.? I am starting a new job where I will have a $2200 deductible plan, but the company that I will be working for will be putting $2200 in the health savings account. Does this money in the account go towards dentist visit, perscriptions, etc? Once the $2200 is exhausted, then the normal health insurance kicks in, correct? I know it doesn’t cover dental, but with all of this money in the account, is it worth getting additional dental insurance? Thanks for any help.

    View Comment
    1. Reply

      The money they put in the health savings account is yours for whatever you want to do with it, healthwise, that’s not covered by your plan. So yes, you can use it for dentist, prescriptions, co-pays, etc.

      Yes, once the deductible’s met then your health insurance kicks in.

      And finally, dental plans are one of those things you want to compare price of how much it’d cost to go to the dentist twice a year, versus how much it’d cost to have the additional coverage. Unless you anticipate a lot of dental work this year, a couple cleanings a year normally isn’t offset by the additional premiums. Check around and make sure though.

      View Comment
    • Scorpiomaj27
    • May 10, 2014
    Reply

    What’s Up With Health Savings Accounts? I’ve read the wikipedia, IRS site, etc and still have questions. An answer to even just part would be greatly appreciated:

    1. I’ve read the yearly limit is around $2900, is that CONTRIBUTION limit or a BALANCE limit?

    2. What is my (essentially) lifetime limit? In other words, if during year 1 I spend $0, then by the end of year 2, I could theoretically (if nothing changes) have a balance of $5,800, correct?

    3. If I have some kind of emergency and need to tap into that money, HOW do I pay the tax/penalty on it?

    3b. How much of a penalty are we talking about?

    4. Considering my HDHP has a $3000 yearly out of pocket maximum. Can the Health Insurance carrier ‘see’ my other costs (that it will not pay anything for), such as lasik, and can that be subtracted for my out of pocket maximum purposes?

    4b. So this must mean that my insurance company somehow can see my HSA balance and transactions? That doesn’t seem to make sense.

    5. How closely does the IRS watch?

    View Comment
    1. Reply

      1. Contribution limit. The balance is unlimited.

      2. No limit (until the rules change, that is).

      3. There is a line item on tax forms for these types of withdrawals. Same as with withdrawals from retirement accounts (401(k), IRA).

      3b. Regular income tax +10% penalty.

      4. They will only see what goes through them, and for this reason, you’re supposed to channel some stuff through them even if they’re not going to pay it. Everything that they would count into the out-of-pocket expenses should go through them (but not everything that goes through them is counted — see your plan literature).

      4b. Nope, the insurance company doesn’t have access to that, and doesn’t even know if or where you have the HSA account.

      5. HSA is a relatively new thing, I’m not sure anyone knows.

      A couple of additional points that you may not be aware of:

      a) After age 65, you can withdraw money from HSA for non-medical purposes and pay no penalty (income tax will still need to be paid — similar to an IRA).

      b) If you become ineligible for HSA (e.g. you go to an insurance plan with regular, not high, deductible), you’ll lose the ability to contribute to the HSA, but you can still take money from it for medical expenses tax-free and pentalty-free, until you spend it all.

      View Comment
    • Sunanda D
    • May 26, 2014
    Reply

    What Is A Health Savings Account?

    View Comment
    1. Reply

      A Health Savings Account is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for their health care. HSAs enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.

      You must be covered by a High Deductible Health Plan (HDHP) to be able to take advantage of HSAs. An HDHP generally costs less than what traditional health care coverage costs, so the money that you save on insurance can therefore be put into the Health Savings Account.

      You own and you control the money in your HSA. Decisions on how to spend the money are made by you without relying on a third party or a health insurer. You will also decide what types of investments to make with the money in the account in order to make it grow.

      ^ TOP

      What Is a "High Deductible Health Plan" (HDHP)?
      You must have an HDHP if you want to open an HSA. Sometimes referred to as a "catastrophic" health insurance plan, an HDHP is an inexpensive health insurance plan that generally doesn't pay for the first several thousand dollars of health care expenses (i.e., your "deductible") but will generally cover you after that . Of course, your HSA is available to help you pay for the expenses your plan does not cover.

      For 2005, in order to qualify to open an HSA, your HDHP minimum deductible must be at least $1,000 (self-only coverage) or $2,000 (family coverage). For 2006, the amounts increase to $1,050 and $2,100, respectively. The annual out-of-pocket (including deductibles and co-pays) for 2005 cannot exceed $5,100 (self-only coverage) or $10,200 (family coverage). For 2006, these amounts increase to $5,250 and $10,500, respectively. HDHPs can have first dollar coverage (no deductible) for preventive care and apply higher out-of-pocket limits (and co pays & coinsurance) for non-network services.
      ^ TOP

      How can I get a Health Savings Account?
      Consumers can sign up for HSAs with banks, credit unions, insurance companies and other approved companies. Your employer may also set up a plan for employees as well.

      How much does an HSA cost?
      An HSA is not something you purchase; it's a savings account into which you can deposit money on a tax-preferred basis. The only product you purchase with an HSA is a High Deductible Health Plan, an inexpensive plan that will cover you should your medical expenses exceed the funds you have in your HSA.

      View Comment
    • Anonymous
    • May 28, 2014
    Reply

    Are Flexible Spending Accounts Different From Health Savings Accounts? I know health savings accounts expire- which I think is insane.
    But do Flexible Spending accounts do?

    Are they just the same thing?
    Am I really that confused?
    Thank you for your answers.

    View Comment
    1. Reply

      They are not the same.

      Flexible Spending Account is your employer hold it for you. But you have to use it by the end of the year( some let you use it until April 15 of next year). But you have to use or lose it. FSA is expired

      HSA is the account you can roll over to next year. You manage your own HSA account(through bank or brokerage firm). The employer deposit certain amount of money for HSA account. IRS let you contribute pre-tax money to HSA too. If you young and healthy, your HSA grow like 401k and keeping the money grow until you use it for health purposes. So HSA is never expire as long as you keep your health plan rolling.
      I hope I answer your question clearly

      View Comment

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