The Shocking Truth About An HSA (Health Savings Account)

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8 ай бұрын

A Health Savings Account is one of the best financial accounts out there. It's so great I have dreams about it. So in this video, I'm going to break down what's so special about an HSA and how you can maximize it.
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A Health Savings Account has been around for 20 years, but not a lot of people are aware of what they are and how they work. It's more than just a way to save for medical expenses, it can also be turned into another retirement account with more benefits than something like a 401k, 403b, 457, and Roth IRA.
We'll be cover topics like what an HSA is, the contribution limits for an HSA, how to supercharge your health savings account, how to make sure you're choosing the correct health insurance plan (high deductible health insurance plan), how to invest money within your HSA, a comparison of what it looks like if you invest your money vs. not investing your money, triple tax savings, tips and tricks to maximize a health savings account, mistakes to avoid with an HSA, and much more!
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Disclaimer: This video is for entertainment purposes only. Everyone's situation is different so do your own research before making any decisions with your money.

Пікірлер: 666

@JarradMorrow 7 ай бұрын

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@juliandaza82 6 ай бұрын

What is the system you use to keep track of the receipts digitally? Appreciate any info. Thx

@willmallory9085 6 ай бұрын

I'm told military people (Tricare) can't have these. Any truth to this?

@shibajichatterjee3190 5 ай бұрын

Can you suggest where to save medical receipts for free ..so that I can claim those later from HSA ?

@nameloC 8 ай бұрын

New Jersey has apparently invaded and conquered the state of South Carolina.

@JarradMorrow 8 ай бұрын

😂 11:14

@o0usf0o 8 ай бұрын

I didn’t want to be that guy but glad someone said it lol

@KCInferno 8 ай бұрын

I wanted to be that guy, but you beat me to it. 😢

@jonc1375 8 ай бұрын

I think he meant New, New Jersey

@Sufi_Annoor 8 ай бұрын

lol I was just gonna say the same thing

@stt5v2002 8 ай бұрын

I have been using an HSA in this fashion for almost 20 years. It really does work. My HSA account has nearly $250k in it. One additional tip. There are many allowable health care expenses that you might not think about but need to track. Things like band aids, over the counter Tylenol, a thermometer, home Covid tests, neosporiin ointment for scrapes, hand sanitizer, etc are all allowed expenses. But you need receipts / documentation. There are also a few other clever maneuvers you can use if you plan well. For example, say that your doctor were to recommend that you work out at the gym 4 times per week to treat your weight, diabetes, blood pressure, depression, or back pain. You could then get your gym membership reimbursed from your HSA funds. Documentation required, but legal.

@JarradMorrow 8 ай бұрын

Great points. Thanks for sharing your personal experience

@MisterKelisi 8 ай бұрын

Why would I have to get my expense reimbursed if Jarrad says that it’s better to pay the expense out of pocket instead of through the HSA account? Confusing .. @jarradmorrow

@ronlewis8398 8 ай бұрын

Thanks for the info. As a point of clarification, is the main strategy to fund the HSA, let it multiply, pay out of pocket for medical expenses and then use receipts like 20-30 yrs later to be reimbursed for all the out of pocket costs once the principal amount has multiplied without being used? Is that part of the strategy being proposed? Or just keep receipts forever when you spend from the hsa account incase you're audited 30 yrs late to see if you added a candy bar?

@thebestSteven 8 ай бұрын

@@MisterKelisi Because you can remove the money at any time. So you can keep the receipts for years and pay after you've gotten the gains from doing what this video talks about.

@wrenchguy2937 8 ай бұрын

smart life hack right here

@mckinleyp13 8 ай бұрын

Opened up an HSA last year and I’m kicking myself for not having had started earlier. If you’re young, don’t have dependents, and can cover the minimum deductible, OPEN up an HSA. It’s another great vehicle for building wealth.

@justinh.2778 8 ай бұрын

I opened mine before I turned 31. Wish I had done it sooner, but at least I’ll have my 401k and my HSA retirement in 35+ years!

@fredster021 4 ай бұрын

Any recommended HSA?

@NateSmith 8 ай бұрын

Wow this showed up at the perfect time as my company is in the open enrollment period. I’m in my early 20s, and you may have just gained me thousands of dollars for the future with this video.

@JarradMorrow 8 ай бұрын

That is awesome!

@cristinabolanos47 29 күн бұрын

That’s great!!! I wish I knew on my 20s. Been maximizing it for almost 7years

@JeffTeeples 8 ай бұрын

I love the power of HSAs. Always trying to explain it's value to people. Well done sir!

@JarradMorrow 8 ай бұрын

Much appreciated!

@michaelb.8953 8 ай бұрын

I'm with you 100% on your comment. A couple of years ago a coworker was complaining to me that our employer based premiums coming out of his check biweekly check on a monthly basis was more than his monthly rent payment. I explained the process of an HDHP coupled with an HSA and placing the cost savings of his lower premium HDHP into his HSA. He thought it was a bad idea and kept telling me that he doesn't want to get any medical bills, but in the meantime he felt better about spending $600 a month month in and month out regardless if he used $600 in medical services that month or not, essentially blowing hundreds of dollars a month for no reason. I went through the whole process again with him again trying to get him to understand, but he wanted no part of it. To be fair though this guy was completely horrible at handling his money as he was always in stupid car debt with having to buy at car lots that only sell cars with those ignition shutoff systems in case you're a day late with the car payment or insurance payment and was always having his cell phone shutoff on him for non payment. Needless to say I couldn't get through to him and he switched jobs some time later and lost touch with him.

@amcreaken 8 ай бұрын

Intrigued by HSA, but... that was definitely not New Jersey on a map.

@JarradMorrow 8 ай бұрын

It identifies as NJ

@jakeholland3491 2 ай бұрын

😂😂😂@@JarradMorrow

@mallardcutter7209 8 ай бұрын

I’ve had an HSA since they came out. I have not spent a dime of it. Restrictions prohibited me from investing for several years but since that was lifted I now have $125,000 in it and I continue to max out my contributions for just a single and no dependents.

@vax31j 8 ай бұрын

Thank you! Your video is a must for anyone financially minded.

@BadPhD777 8 ай бұрын

I'm one of the few (like you) letting my HSA pile up until I retire. It's all invested at Fidelity!!

@j-s2526 5 ай бұрын

I just started mine with them. Do I have to pick where I want to place the money to get a good return on it or does it do that itself like a saving account? New to all this and wish I would have started when I was 21 ..dumbass me

@hastycontemplation 3 ай бұрын

@@j-s2526Yes you have to pick, the nice thing about Fidelity is you have many more investments to choose from.

@Erock181 8 ай бұрын

Great video! I’ve been working in the employee benefits space, with a focus on HSAs, for 8+ years. This is the type of content needed in open enrollment meetings!!! I’ve had multiple financial advisors tell me an HSA is the most powerful retirement vehicle out there. Take advantage of the tax benefits…especially the tax free growth!

@laurabartel7240 7 ай бұрын

This video was a lightbulb moment for me. Thank you thank you for this well explained video. Seriously!

@Sylvan_dB 8 ай бұрын

True that. I first became eligible for an HSA in 2015. Wife and kids on my high deductible plan. I spent nearly all my HSA contribution in 2015 and most of contribution in 2016 then I figured out the "health retirement" approach. So much better! But I need to get better about tracking medical expenses for later.

@darauy1195 5 ай бұрын

Answered all my questions, thank you. Time to supercharge my HSA!!!

@JarradMorrow 5 ай бұрын

Glad I could help!

@rv-ollie 8 ай бұрын

Okay, youre redeemed with the NJ map. Good B-roll half way thru the video. Lol. Love your content. Keep it up.

@JarradMorrow 8 ай бұрын

Had to make sure you were paying attention 😂

@randolphh8005 8 ай бұрын

There are additional “medical” expenses which are HSA eligible BUT not reimbursed by insurance. These include many Over The Counter products, and some insurance premiums like Medicare part B and D, and long term care insurance. The IRS publishes a long list of eligible expenses. It is worth reading so you save all the receipts. Also as stated, for the healthy the HDHP is usually cheaper than the regular health plan so you are also saving money on premiums, including if you have to make a partial premium payment as many employers require. We are entering retirement with over $130k in HSA money!

@quicknickucf 7 ай бұрын

Thanks for the info. I didn't know I could keep my receipts for future withdraws with no expiration. Great video

@alleneverhart4141 8 ай бұрын

FYI: For peeps on medicare - you can claim Part B payments and IRMA against your HSA account. In 2023 PART B is $165 per month.

@JarradMorrow 8 ай бұрын

Great tip. Thanks for sharing!

@HRCfan17 8 ай бұрын

Glad I watched this video. My employer just started offering an HSA. Just enrolled and not sure how it all worked.

@JZeez96 6 ай бұрын

Thank you so much for this video Jarrad, this was extremely helpful!

@Thatsotaguy 8 ай бұрын

Just in time for open enrollment! Thanks for everything you do Jared!

@JarradMorrow 8 ай бұрын

My pleasure!

@abern30 8 ай бұрын

Great video. Was the “New Jersey” part a joke where it was actually South Carolina on the map? I took it as a joke. That subtle humor is the best.

@JarradMorrow 8 ай бұрын

Thanks! Wait, isn't NJ right below NC?

@abern30 8 ай бұрын

Your videos are tremendously helpful! Thank you for taking the deep dives into these important topics I was never taught about in school@@JarradMorrow

@R5123 8 ай бұрын

Love it, nice video! I find it impressive that even though there are experts / professionals at companies that work in this area, many cant explain it half as well as you!

@JarradMorrow 8 ай бұрын

Appreciate it!

@JohnJohn-wr1jo 4 ай бұрын

Your overestimating your company representatives knowledge on HSAs. In my experience since the HSA was legislated in 2003 most company representatives/HR people know little more than the accounts have to be spent on medical. Before retirement I would sit in on an annual employee benefits meeting and our Corporate Benefits specialist admitted that less than 10% of employees utilized the accounts and that she hadn't as of yet either. UFB.

@jhl33t 7 ай бұрын

Thank you Jarrad for this enlightening video! Life changing information here everybody! Watch the entire video. 👍👍🙏🙏

@justthebrttrk 8 ай бұрын

The HSA improvement act (maybe coming soon?) makes HSAs even better! Might be something to cover in a future video. Excellent content, thank you! Definitely sharing this one with friends. I've been doing everything you talk about here since 2020 and am so excited to see what happens with my HSA in 20, 30, 40 years from now.

@headlibrarian1996 8 ай бұрын

That bill (passed committee but not yet law) doesn’t seem to do much. It doesn’t increase contribution limits to at least your max out of pocket or make the catch-up inflation-adjusted (hopefully in a meaningful way), which are the two biggest flaws in HSAs in my opinion.

@justthebrttrk 8 ай бұрын

@@headlibrarian1996 the new contribution limit of 7,500 for individuals sure as heck beats my out of pocket maximum!

@toddhatch6826 8 ай бұрын

Fantastic info!! Totally agree! Great additional way to save for retirement!! As a side note my current employer doesn't allow HSA funds to be invested, so I roll them over to my Fidelity HSA every 4 to 5 months or so to invest them and watch them grow!!!

@JarradMorrow 8 ай бұрын

Smart move! Thanks for sharing how you're working around that issue! Which HSA provider isn't allowing you to invest your funds?

@toddhatch6826 8 ай бұрын

@@JarradMorrow it's my employer, a community bank.

@JarradMorrow 8 ай бұрын

Ah, okay that makes sense.

@toddhatch6826 8 ай бұрын

@@JarradMorrow the funds just sit in a checking account earning almost nothing.

@NaturalDrAmanda 8 ай бұрын

😮 Can you possibly automate the transfers monthly? My guess is that you’d ultimately earn more interest by making more contributions like people who invest twice a month into the market. Consistency and frequency make money grow faster it seems.

@randy1234344 7 ай бұрын

Thanks! This was a very thorough, well-thought out educational resource! Many thanks Jarrad!!!

@JarradMorrow 7 ай бұрын

Wow, thank you!!

@jordanvanderheyden6346 3 ай бұрын

This video inspired me to max out my HSA and I can not wait to see it grow with my investments! BOOM!

@chickenchaser6284 4 ай бұрын

I'm glad you took some extra time to reinforce the importance of the high-deductible requirement. I am younger and switched to an HSA option this year as I thought it was a great option to do as you are describing, NO TOUCHY! Some considerations I went back and forth on was the difference in deductibles ($500 vs $1500) and my company contributing $500 (yay free money). I am not any good at math unfortunately, but the main concern for me switching was the deductible vs the potential to invest since I have a prescription at $112 every month, which is $4 after the deductible is met. Obviously, that means half the year I'd only be paying $4 on my low deductible plan and $112 wasn't the number I saw in the calculator I used based on the plan. *Shrugs* My plan is to be ready for next year's open enrollment with as much info as possible! Thanks for the video

@Distortic 8 ай бұрын

My issue isnt the HSA, its the price fixing involved in my high deductible plan. Its cheaper to not use my high deductible plan. Multiple doctors have quoted me almost double to use my insurance vs paying cash. I still used the HSA money, but when healthcare is made more expensive it eliminates the savings. Id rather pay taxes than pay inflated medical prices that only benefit big insurance companies.

@pwade4061 8 ай бұрын

That's a fair point

@jacobhinsey 8 ай бұрын

Same. I had this happen as recently as this morning

@raiden031 6 ай бұрын

I've never heard of cash being cheaper than using insurance

@antoniotula262 Ай бұрын

@raiden031 I've been looking into this since late last year since I went to check-in for a regular Doctor appointment and the site asked if I wanted to use my insurance or pay cash...hmmm. Well I started googling a bunch of info. The bombshell for me was when my own Doctor told me doesn't have insurance!!!... he just pays cash for blood screening panel 3 times a year for around $150 each time. Here I am paying $530/month for the past 4yrs for insurance and all I've done was get a yearly blood screening!!! Google any procedure for your zip code and you'll see (colonoscopy, mammogram etc).

@CharlieVN 23 күн бұрын

Bro, pay cash, get receipt, boom hsa eligible, not a real problem

@ph5915 8 ай бұрын

I've had my Fidelity HSA via my former employer and have everything invested in the FAIX ( The Fidelity S&P500 index fund) for the past 8 years or so. I was living off of savings until this year from 2019 (I turned 59.5 earlier) so I didn't invest for 4 yrs but now that I'm pulling from my IRA I am maxing out the HSA again! I have 5 yrs to go before Medicare age, and researched it extensively. For me, the Medigap/Supplement Plan that makes sense is the Plan G-HD (high deductible) which the MOOP is less than half of my retiree medical plan's! I am hoping I could still contribute to my HSA at that point, when in Medicare, as long as I would be in the Plan G-HD? That should qualify in my opinion, I think there is something in Congress to that effect (not passed yet of of course).

@607AAG 7 ай бұрын

Amazing video!

@_Renee2 8 ай бұрын

I opened one last year and need to learn more. FSA had too many limitations and the “use or you lose” was not worth it.

@DadinWA 7 ай бұрын

Huge fan of HSA. Triple tax advantages. I’m doing exactly what you stated in this video. Contribute yearly, invest, and hold long term. Thx for sharing

@ROLOGamingOfficial 8 ай бұрын

New Jersey, proceeds to highlight South Carolina in the map.

@superman1251 8 ай бұрын

Great video!

@JarradMorrow 8 ай бұрын

Thanks!

@Czarchasm121 8 ай бұрын

first infographic when you mentioned NJ and CA as exceptions actually highlighted south carolina

@The_Draque 8 ай бұрын

Ive been trying to do this back and forth for the last 6 years. Always end up spending the HSA funds because medical bills are insane on a high deductible plan..like $600-$900 for routine bloodwork insane

@Kibatsume1 8 ай бұрын

I would recommend finding another doctor. I have found a lot of doctors offices up charge when you have insurance. Fine example my father's boss has good insurance. A medical procedure his wife went through the doctors office wanted $2,000 for his co pay He lied told the doctor's office he didn't have insurance anymore and was paying cash total cost as a cash payer??? $800!!!!! People wonder why insurance is so expensive because hospitals and doctors offices get away with this bs!

@camasu100 8 ай бұрын

Don't ever have blood tests done in office or at a hospital, use Quest or LabCorp or another independent lab. You have to be a savvy consumer when you have an HSA.

@Firewireman1 7 ай бұрын

If it is being done as part of your annual physical, it should be covered. It's different than if you walk in the door with an issue and say, "diagnose me." I've gone around and around with provider and insurance, but that is how many insurance plans are worded, including mine. Have almost always been able to get it taken care of as part of my annual physical since it should be classified as "preventive."

@raiden031 6 ай бұрын

@@Kibatsume1i would say it's almost always more expensive if you don't have insurance or are out of network. It's because they charge retail prices whereas insurance negotiates a discount

@edgonzalez186 Ай бұрын

You're the first one speaking in reality. How do numbers work for you? Let's say if you're regular medical insurance was $300 monthly... how much do you pay for your hight deductible health insurance? And... what is the difference in copay for each one? If a cancer diagnosis occur my plan would cover 80%. How was that situation presented in yours.

@CodyBMcGuire 8 ай бұрын

My company seeds 500 into the HSA at the beginning of the year. On my 3rd year of maxing. I set up automatic deposits that come out before taxes, so I don't even notice. Pay yourself first.

@justinbrtek4801 8 ай бұрын

Optum Bank HSA (United Healthcare subsidiary) has a nominal $2 monthly fee, a cash holding requirement, and a percentage based investment fee (separate from fund expense ratios). I would not be with them if it wasn't through my employer.

@JarradMorrow 8 ай бұрын

This is helpful. Thanks for sharing with us!

@wanderlust7020 8 ай бұрын

You can have more than one HSA account. My employer also uses Optum, but I’d also opened a Fidelity HSA last year and have Fidelity initiate a transfer from Optum to Fidelity when I have excess in the Optum account. I just need to keep at least $500 in Optum to avoid any fees and don’t bother with the Optum Brokerage portion anymore. (Fidelity pulls it from Optum for free, which is better than the $25 transfer fee to have Optum push it to Fidelity !!!)

@bgoode652 8 ай бұрын

@@wanderlust7020 This is what I do as well. I have to keep the Optum account open to get the payroll deduction and company match benefits but all but about $1,000 of my HSA is housed with Fidelity.

@robertwheat1864 7 ай бұрын

@@wanderlust7020 This is the way, use your work account and then transfer to a better provider. But keep checking fees on both sides.

@TheMatadore 8 ай бұрын

The best HSA contribution is a total payroll deduction. Pay zero taxes of any kind.

@DaveDivesIn 7 ай бұрын

Excellent advise

@JMo268 6 ай бұрын

I'm convinced. Thanks.

@JarradMorrow 6 ай бұрын

👍🏻

@KishanPatel-cn5ls 8 ай бұрын

Hi Jarrad! I really appreciate all your videos. I had a quick question. My company has an ESOP plan so I’m getting this in my portfolio. Is it worth it to keep those shares or trade them for an index fund? Thanks!

@frankymoore3344 8 ай бұрын

Great info @Jarrad. I wish you would mention another fantastic aspect of HSA - some of the HDHP plans offer a broader in-network coverage, which allows patients to “shop around” before choosing a provider, procedure, or medications. For instance, a pelvic CT scan with contrast at a major California hospital could cost you $1600 or more. However, if you explore options like community hospitals or smaller facilities that specialize in radiology scanning, you can instantly lower the cost to the $450-$700 range. This might involve working with your primary physician’s office to fax an order to another facility or provider, but it’s well worth the savings (please note: this isn’t advisable in critical conditions where time is of the essence). The same principle applies to various types of lab work as well. Some insurances (if not all) provides the option to Quote procedure by its #/name and list available in-network facilities with approx price. Hope it helps. Stay healthy comrads!

@StormWarningMom 7 ай бұрын

This is called running a test claim. Be sure you have both diagnosis and procedure codes in hand when you call.

@pnowikow 8 ай бұрын

I love my HSA. It's life changing

@633ohioc 2 ай бұрын

Wow....thanks for the video...i knew nothing about hsa.

@patrickleitgeb 7 ай бұрын

My employer offers a traditional Blue Shield HMO where the monthly premium is about $76 vs a newly offered HDHC for $186. They also will contribute $1750 per year for that. I’m on the fence about paying the higher premium of the HDHC. I’m in my early 50’s. I visit the doctor once or twice a year for checkups and my prescriptions are very inexpensive. I’m not sure if it makes sense for me to switch to the HDHC only because this is very new to me.

@rdarrett3635 8 ай бұрын

Good stuff.

@curtiswfranks 8 ай бұрын

It should be noted that not 𝘢𝘭𝘭 of the medical expenses have to be paid out of pocket up front, usually. That is the worst-case scenario. But an HDHP 𝘪𝘴 health insurance, even if it is not the best health insurance which exists, so it should cover some positive amount of one's medical expenses.

@chrisb1809 8 ай бұрын

I like how New Jersey relocated south and doubled in size.

@JarradMorrow 7 ай бұрын

😂 11:14

@michaelschlager2808 4 ай бұрын

I think of mine as a savings account. If things get skinny, I can pull out some medical expenses I paid previously out of pocket, and use the money pulled out to make ends meet. I haven't had to do this yet, and hopefully this can grow for 30+ years. But if not, it's there when I need it.

@lukewilliams4160 8 ай бұрын

Hey Jarrod, great video! I've had an HSA for a while because of yours and other finfluencers videos and it's nice to see these updates. One quick question for you. You mention if you have a self-directed HSA you won't get the tax adjustments for SSI and Medicare. I have HSA contributions selected through my employer and they money is sent to my HSA account before my paycheck hits my checking account, but I also am self-directed in that I choose my own investments for my HSA funds... is this not the type of self-directed you are talking about? Am I getting the tax adjustments like o should be? I would assume that I am since my employer is taking it out of my paycheck beforehand but I wanted to double check. Thanks again!

@JarradMorrow 8 ай бұрын

Appreciate the feedback. Happy to hear it’s working well for you so far 👍🏻. The “self directed” HSA I’m referring to is for people who don’t get their HSA through their employer so you’re not a part of that group of people. Sounds like you’re doing everything you need to maximize the account so just keep up the good work.

@AZsmoothrider 6 ай бұрын

This is a great gig for a young healthy person- even if you only did it for 15 or 20 years. For me I'm content maxing my Roth 403b and IRA

@josephabramson9395 7 ай бұрын

You can open a limited FSA for vision or dental, and then once you hit your hdhp deductible you can then use your FSA for medical. But this depends on company

@pythonxz 8 ай бұрын

I'm glad I didn't come here for geography.

@JarradMorrow 8 ай бұрын

Sir. I have a masters degree in geography from Harvard.

@juliewillson3378 8 ай бұрын

@@JarradMorrowyou might want to look at your map again and find New Jersey.

@intrepid_rain 8 ай бұрын

i’M gLaD i DiDn’T CoMe HeRe FoR GeOgRaPHy derp

@intrepid_rain 8 ай бұрын

@@juliewillson3378 that’s great and all Julie but it was a fucking joke. Are you seriously this dense? Wow…how embarrassing for you.

@mariesmith8064 8 ай бұрын

😂😂😂

@johnnym2814 7 ай бұрын

RMD age is 73 now and going up to 75 in a few years but loved the video great content

@JarradMorrow 7 ай бұрын

Thanks for correcting me 👍🏻

@a32tl 8 ай бұрын

I love my HSA! I’ve had mine about 5 or 6 years now and have approximately $18k in the account. I’ve been maxing it for the last 2 years and invest it in a growth fund and an S&P 500 index fund. I pay for medical expenses out of pocket and save my receipts. It’s one of my favorite accounts. Amazingly, I’ve not been able to convince others of how awesome an HSA actually is. All my coworkers spend their HSA money and don’t invest it.

@jnordman86 8 ай бұрын

Have you seen your investment grow?

@JarradMorrow 8 ай бұрын

Thanks for sharing your personal experience with an HSA 👍🏻

@a32tl 8 ай бұрын

@@jnordman86 I have seen it up and down. But just like any other investing account, I keep buying and dollar cost averaging. Over time, I fully believe it will pay off.

@biglemon7764 8 ай бұрын

Funny thing is, even if it doesn’t grow one dollar, you still have MONEY there, you’ve saved in taxes and compare that to your coworkers who have NOTHING.

@a32tl 8 ай бұрын

@@biglemon7764 Absolutely correct!

@Joenzinator 4 ай бұрын

Great info Jarrad. I will say, if you start maxing out your HSA early enough, I think it's fine to use some of it on current medical expenses. I'm 37 with $50k already in my HSA, so without any more contributions, it should be ~$350,000 when I retire. I'm still maxing it out, but I've started using ~$3000/yr on my family's current medical bills. That should yield around $520k by age 55, if I choose to retire then. At that point I could probably count on a sub 4% withdrawal rate and not even touch the principle. I believe HSAs are taxed upon death, so that's not really the goal, but it might be what happens unless we incur a lot of medical expenses.

@JohnJohn-wr1jo 4 ай бұрын

I started contributing the family max to my hsa when they were first available and invested 100% allowable from day 1. Had already maxed out my Roth and regular 401k. Retired in Jan 2020 with 134K in the hsa and it's well over 200k to date. I look at all of my medical expenses annually and can submit for reimbursement but haven't so far. I never intended or expected to grow this account as such but decided several years ago to use this in place of a long term care policy that everyone was trying to sell me. I do the math on it once a year and this is by far the best utilization for this account as I get older for too many reasons to list. My CPA wasn't on board initially but now agrees that this plan is aging quite well and makes more sense every year vs the LTC policy costs and reductions in benefits. I look at my HSA as an insurance account primarily for all things medical including long or short term care.

@adjhunts811 8 ай бұрын

Nice. I have one, but didn't think about saving receipts for 30 years and then submitting for reimbursement.

@heidikamrath1951 8 ай бұрын

Same

@indishanoh8240 8 ай бұрын

The company normally has an excel form for you to track your expenses , and you can upload your receipt.

@FreakyLynx 4 ай бұрын

Currently 46 and only just started to contribute to an HSA this year, hopefully didn’t lose too much time by not getting one sooner.

@tannerhughes6274 8 ай бұрын

I just started working as a new aircraft mechanic with a large airline company and they offer an HSA program I opted into. I’m about to put in 6,000 annually, and I think it was showing the company will put in &1,500 a month (I might be wrong but that’s how I ready/understood it). I try talking to other mechanic guys I’m starting with or other guys who are here but no one seems to get what it is and shy away from it, thinking it’s a scam or seem afraid of it.

@BuildItFixItDIY 8 ай бұрын

0:45 I didn’t realize there had been a sudden and major tectonic event that caused New Jersey to migrate southward.

@JarradMorrow 8 ай бұрын

😂😂

@zackgallinger-long4459 2 ай бұрын

Thanks!

@JarradMorrow 2 ай бұрын

Wow, thank you. That's very generous of you 👍

@mikemush9741 7 ай бұрын

Love your videos Jarrad. I started watching them a couple of years ago and I'm well on my way with HSA's thanks to you. My question that I can't seem to get answered.....For 2023 my wife maxed out her HSA by contributing $3,850. I maxed out mine at $7,750 as the kids are on my insurance. I feel like we have overcontributed, but I'm having a hard time confirming that. Can you advise please? If we did overcontribute, is there anything we can do about it before tax time? Thanks so much!

@blsr3771 8 ай бұрын

FYI: You must stop contributing to your HSA when you enroll in Medicare. Once you file for social security you are automatically enrolled in Medicare part A and it may be retroactive for 6 months. Your HSA is there for paying medical bills but you can’t contribute more. Thanks Wayne. You are only enrolled in Medicare part A if you are past Medicare age. I waited till after FRA to enroll in social security and I am on my employers insurance (credible & over 20 employees) instead of Medicare. SSA automatically enrolled me in PartA 6 months before the begin of my social security. Luckily I had already read about this and stopped my HSA early.

@waynemiller6070 8 ай бұрын

At 63, I've been collecting Social Security for a year. But I also have a high deductible insurance plan with an HSA that I continue to contribute to. I won't enroll in Medicare until I'm 65. But that's what I plan to stop contributing to the HSA.

@themeowcasa 4 ай бұрын

Just crossed 10k mark 🎉 29 years old!

@philipphanslovsky5101 8 ай бұрын

Ironically, I have had various health plan options for which there was no scenario where a high deductible plan would have been more expensive, even when reaching max deductible and without considering an HSA.

@tomlull5204 8 ай бұрын

@Jared at 17:53 you mention the digital system you use for tracking receipts. Please share.

@JarradMorrow 8 ай бұрын

There’s a link in the description of the video to get it

@zgdafzgdaf4264 8 ай бұрын

Great advice. It took me two years to figure out I should be saving this money instead of spending it on current health expenses.

@savanah1407 7 ай бұрын

Same

@lmelior 8 ай бұрын

Great video! Don't sleep on that secret FOURTH tax advantage described around 16:20... if your HSA contributions go through payroll, it ALSO reduces your FICA withholding, meaning you save 7.65% in taxes on your contributions. That's a savings of over $50/month for families who max it out. Perhaps that's not exactly life-changing but it's nothing to sneeze at either! My HSA is at Fidelity and I love it. My company used to have our 401k there as well, but although that has been moved, fortunately the HSA is still there. The only other warning I'd have is that, while HSAs are incredibly awesome, if you're likely to hit your out-of-pocket maximum in the next year (e.g. if you're having a baby), it might make more sense to take the non-HSA eligible option during open enrollment. HDHPs can have sky high OOP maximums (e.g. mine is $10k), so take into account how much of a hardship it would be to pay that much out of pocket. Definitely highlights the importance of having an emergency fund!

@JarradMorrow 8 ай бұрын

Great points. Thanks for sharing!

@minsubsong5578 8 ай бұрын

I spent about $1000 in physical therapy this year but didn’t think to keep the receipt. So I should keep the receipt for forever and that expenses refunded when I’m ready to pull the money out of my HSA. 😮

@joshsmith7692 8 ай бұрын

I have an HSA and its getting moved to Fidelity starting next year. My plan was to feed it while i am "young" so when i start going to the doctor i have the money for expenses. But im not going to double pay for medical expenses just to have more money later. So my kids braces and oral surgery has been paid for by my HSA and im fine with it.

@JarradMorrow 8 ай бұрын

Sounds like a great idea to me. Keep up the good work 👍🏻

@yourcalpal 4 ай бұрын

This makes sense if you dont have issues. Even issues like acne on HDHP mean even prescriptions are not even covered so to get that topical ointment, it cost 300$ because insurance will not cover until i meet my 5k deductible. This is on top of the doctor visit to get the prescription which was 250$. This makes some monthly check ups or procedures not possible until i change my next election vs plans with a small copay of like 20$ for a doc visit.

@sethlikesgreen 6 ай бұрын

0:46 I believe you meant to highlight NJ, but it's actually highlighting SC.

@hipernet 3 ай бұрын

2:50 , you says catch up and it shows a quick picture of Ketchup lol

@nessapalmer5316 8 ай бұрын

Just remember these accounts are subject to unclaimed property rules so be sure to complete a transaction, call or login to your account to keep your account active. There can be inactive fees too so find out these time-frame to avoid losing your money.

@chantzmoore781 8 ай бұрын

Can you explain more

@nessapalmer5316 8 ай бұрын

@chantzmoore781 sure depending on your State laws an account can become dormant if you do not make positive contact, meaning logging into your account, calling or completing a transaction. After usually 3 years of no activity the institution has to send your funds to the state you live in as unclaimed property. You can then get it back from state but it would no longer be in your account.

@oldporkchops 6 ай бұрын

@@nessapalmer5316Do annual/monthly contributions count as activity?

@RealSamHailu 6 ай бұрын

well made video

@kgal1298 8 ай бұрын

Aye I've had my HSA for awhile. I liked my last employers HSA more which was through BofA, my current one uses Healthequity and I dislike the fee structure, but at least it can be invested. I'm also lucky my employer covers all my copays on medication which you don't always get when you have a plan with an HSA. I didn't have it at my last place, but this one I have a prescription for a 1200 medication and they pay the entire thing. Hopefully, they won't change that anytime soon. I love it since I really only need medical costs for when I have an emergency.

@DavidVillaTorre 8 ай бұрын

Im not sure. I love the idea of opening an hsa but as someone who goes to the doctor semi regularly the idea of switching out of my ppo plan makes me cringe

@Sudovest8 8 ай бұрын

I’ve been using HSAs for years and keeping track of receipts in Evernote while allowing my investments to grow. Could tax law change in the future and then we lose all of the benefits of the triple tax benefit?

@nicolebarnes7002 7 ай бұрын

Great video! Thank you. I have comments/questions. You said you must have a HDHP to have an HSA. I live in Hawaii (my company is based in West VA) and in 2022 my company began offering HDHP with accompanying HSA. Half way through the year they found out HDHP violated Hawaii law and I was forced to change to a regular Kaiser Permanente health plan, which disqualified me from contributing pre-tax to my HSA. In 2023, I moved my HSA funds to a Fidelity HSA and began to contribute post-tax dollars for which I should receive tax refund! This is my first year doing the after tax contributions. Any insight on how this will work at tax time? Next question is in 2023, since I was no longer eligible to contribute pre-tax to my HSA, I utilize my companies FSA benefit. I use my FSA to pay for all my immediate out of pocket medical expenses (avoiding touching my HSA). My question is whether the annual maximum allowed contributions would include both my HSA and FSA contributions for 2023. I’m concerned that I will exceed the max because I didn’t anticipate them both contributing to the same annual max. Does this make sense? Thanks in advance!

@johnjohn40100 5 ай бұрын

Holy cow, i thought think hsa reimbursement that way like an expense rather than an investment. Thanks!

@oldporkchops 6 ай бұрын

Hi Jarrad, can self directed HSAs be used to pay for medical cost sharing expenses? These are "high deductible" health plans, but do not function like traditional insurance. Most of the time, you'd pay for expenses out of pocket.

@alexv3344 8 ай бұрын

Since CA does not give residents the full access to the benefits of HSA where, does it still worth contributing. Where does the HSA rank among other retirement investment accounts in CA?

@Usatorok 5 ай бұрын

This is gold. At my age I'm now learning about this; not that I'd lived/saved differently at a younger age. Now I'm looking forward to open enrollment to change to an HDHP. Thank you Jarrad.

@cuzzourt35 7 ай бұрын

Im always broke but when i had an HSA I still maxed it everyyear and withdrew the money becayse we always max our deductible. Essentially allowed us to deduct our medical expenses since our AGI is still to high to get any benefit from itemizing.

@MuscleMan500 2 ай бұрын

Correct me if I'm wrong but, you can use an FSA (non taxed) for qualifying medical expenses instead of paying out of pocket cash (taxed) and still get the benefit of reimbursing yourself from your HSA (non taxed)

@bmxrider925 8 ай бұрын

What are some ways to keep track of your receipts other than through your provider?

@altaccount8749 8 ай бұрын

I had an HSA and was using it as an investment vehicle but my new job pays all premiums on a non HDHP. I just put more money in IRA now.

@davida6299 8 ай бұрын

That's South Carolina, not New Jersey. Attention to detail matters even more in money than it does in geography.

@JarradMorrow 8 ай бұрын

Pretty sure NJ moved there sometime back in 2021 when everyone else was. I’ll have to double check

@cherylrobinson1096 7 ай бұрын

Hi. Great job on your return rate. Saw your vlog a yr ago & did the same. Wonder what stocks you invested in? I'm did VOO.

@j-s2526 5 ай бұрын

I just started investing in a fidelity hsa. I’m trying to learn all of this, but I’m getting confused on certain things. Do u offer a one on one session or anything or is this something my accountant can assist me with?

@kilgary 6 ай бұрын

I’ve been contributing pre-tax to my HSA in CA for 2 years. I have a High Deductible plan with Anthem. They make me keep about $1k in cash but allow me to invest in just about anything. I’m putting it all in BRK.B. My employer is matching $2k for the HSA account next year to incentivize more employees to choose the plan over the more pricey PPO plan they offer.

@joe62845 8 ай бұрын

That's interesting that the money that the company adds in counts toward your full amount. I didn't know that.

@CaedenV 8 ай бұрын

Yeah... My company just started doing that, and I'm annoyed by it. I guess technically it doesn't matter because I maxed out my HSA anyways, so if they give it to me as income, or as a benefit it is still an untaxed gain and comes out in the wash. But if I were tight on cash, I would prefer to have the option to have the cash rather than have to take any kind of penalty to access the funds from the HSA acct. The reality of the situation is that most employees take the high deductible plan as a way to keep a couple hundred dollars a month to spend on lifestyle, and never contribute to their HSA. Then they get in an awful accident, have a massive health bill, and come begging to the company for a paycheck advance for a paycheck that frankly might not exist if the person can't ever work again, or will need to find different work because of limitations due to injury. So HR would rather prevent those awkward conversations by ensuring that everyone has some cash in their acct for emergencies. Also,i suspect that HSA companies offer different rates and benefits based on the composite or average acct balance of related employee accounts. So if I'm getting a better rate and lower fees because I'm not the only person adding to my acct, then I guess I'm OK with that... But I'd also just as rather have the option to deposit into my own low cost HSA acct than the company approved one. All of this really benefits the company, and irresponsible coworkers more than myself😅.

@jicalzad 7 ай бұрын

Not sure how it varies state-to-state, but where i live there aren't very many HSA-eligible healthcare plans.

@adama4455 7 ай бұрын

Wish I would've watched this before open enrollment ended. I only put $400+$800 employee contribution = $1200 per year into mine at the moment. Would absolutely be a good idea to work closer to $4000/yr

@gmo709 7 ай бұрын

Do the state rules apply to the state you work in or live in? And if you work remotely for a company that is in another state, which state makes the rules?