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Where is everyone opening their HSAs these days?

Home Retirement Accounts Where is everyone opening their HSAs these days?

  • Miss Bonnie MD Miss Bonnie MD 
    Participant
    Status: Physician
    Posts: 497
    Joined: 02/14/2017
    Earnest refinancing bonus

    I’ve heard HSA bank and Optum are good choices. I want the usual – low fees, at least some decent investment choices (using as Stealth IRA).

    Thanks!

    "Being rich is having money; being wealthy is having time."

    Miss Bonnie MD --> Wealthy Mom MD @ http://wealthymommd.com

    #104323 Reply
    Avatar adventure 
    Participant
    Status: Spouse
    Posts: 1207
    Joined: 10/24/2016

    HSA bank, maybe a year ago?

    #104324 Reply
    Lithium Lithium 
    Participant
    Status: Physician
    Posts: 1237
    Joined: 02/15/2016

    Saturna.  WCI says he has a post coming out on this and recommends Lively first.

    #104330 Reply
    Avatar hightower 
    Participant
    Status: Physician
    Posts: 1501
    Joined: 12/07/2016

    I just opened a new one for my wife this year with Health Equity. Good so far. They offer a bunch of Vanguard options for the investments and their fees are fairly low

    #104333 Reply
    Avatar spiritrider 
    Participant
    Status: Small Business Owner
    Posts: 1980
    Joined: 02/01/2016

    I’ve heard HSA bank and Optum are good choices. I want the usual – low fees, at least some decent investment choices (using as Stealth IRA).

    Thanks!

    Click to expand…

    Sorry to go on a an off topic rant, but this term is a personal pet peeve of mine and whoever coined this term should be drawn and quartered. Yes, there is a provision in the tax code that after age 65, you can take non-qualified distributions penalty-free, but still subject to ordinary income tax. So in this manner its tax treatment is similar to a traditional IRA. However to do so unless you have no other financial means would probably be among the worst financial mistakes you could ever make in retirement.

    The deferral of current medical expenses is to allow the HSA to grow as large as possible is to create a retirement Health Savings Account. Nothing stealth about it or the need  A 65-year-old couple retiring in 2017 will need an average of $275,000 (2017 dollars) to cover medical expenses throughout retirement and up to another 50% more for LTC insurance and/or care.

    People grossly underestimate their medical expenses in retirement. The following are likely HSA qualified medical expenses in retirement. Medicare Part B/D premiums including IRMAA, deductible, co-insurance, co-pay and other OOP costs for (prescriptions and health, dental, vision, hearing care and products), Long term care and insurance, etc… Medicare Supplement plan premiums are not HSA qualified medical expenses, but if you have a large HSA you can elect a high deductible plan and transfer much of that cost from premiums to OOP costs which are.

    With such a potential and likelihood that you can take tax-free HSA distributions to pay the qualified medical costs in retirement. It would be your own financial malpractice to take taxable non-qualified distributions.

    #104400 Reply
    Avatar HandFellow 
    Participant
    Status: Physician
    Posts: 222
    Joined: 01/18/2016

    I use health equity.  They assess a monthly fee for their vanguard funds.

    #104461 Reply
    Miss Bonnie MD Miss Bonnie MD 
    Participant
    Status: Physician
    Posts: 497
    Joined: 02/14/2017

    I’ve heard HSA bank and Optum are good choices. I want the usual – low fees, at least some decent investment choices (using as Stealth IRA).

    Thanks!

    Click to expand…

    Sorry to go on a an off topic rant, but this term is a personal pet peeve of mine and whoever coined this term should be drawn and quartered. Yes, there is a provision in the tax code that after age 65, you can take non-qualified distributions penalty-free, but still subject to ordinary income tax. So in this manner its tax treatment is similar to a traditional IRA. However to do so unless you have no other financial means would probably be among the worst financial mistakes you could ever make in retirement.

    The deferral of current medical expenses is to allow the HSA to grow as large as possible is to create a retirement Health Savings Account. Nothing stealth about it or the need  A 65-year-old couple retiring in 2017 will need an average of $275,000 (2017 dollars) to cover medical expenses throughout retirement and up to another 50% more for LTC insurance and/or care.

    People grossly underestimate their medical expenses in retirement. The following are likely HSA qualified medical expenses in retirement. Medicare Part B/D premiums including IRMAA, deductible, co-insurance, co-pay and other OOP costs for (prescriptions and health, dental, vision, hearing care and products), Long term care and insurance, etc… Medicare Supplement plan premiums are not HSA qualified medical expenses, but if you have a large HSA you can elect a high deductible plan and transfer much of that cost from premiums to OOP costs which are.

    With such a potential and likelihood that you can take tax-free HSA distributions to pay the qualified medical costs in retirement. It would be your own financial malpractice to take taxable non-qualified distributions.

    Click to expand…

    I think WCI coined the term or at least uses it a lot. I kinda lump stealth IRA/future medical expenses into one. I do expect it will be used for future medical expenses mostly but hey we might get lucky and not need to depending on what insurance choices I will have then. Either way, I am not using it now….

    "Being rich is having money; being wealthy is having time."

    Miss Bonnie MD --> Wealthy Mom MD @ http://wealthymommd.com

    #104495 Reply
    Miss Bonnie MD Miss Bonnie MD 
    Participant
    Status: Physician
    Posts: 497
    Joined: 02/14/2017
    Lively

    Click to expand…

    LivelyMe looks great – slick and modern interface and low fees – $30/yr to invest and uses TDA. As long as you stick with the commission free ETFs…

     

     

    "Being rich is having money; being wealthy is having time."

    Miss Bonnie MD --> Wealthy Mom MD @ http://wealthymommd.com

    #104500 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 8366
    Joined: 01/09/2016
    Sorry to go on a an off topic rant, but this term is a personal pet peeve of mine and whoever coined this term should be drawn and quartered.

    Click to expand…

    Allow me be the first to step up and say it wasn’t me.

    Johanna Fox Turner, CPA, CFP: I am not your financial advisor; any responses are for general purposes only
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #104501 Reply
    Lithium Lithium 
    Participant
    Status: Physician
    Posts: 1237
    Joined: 02/15/2016

    So anything wrong with calling it a Stealth Roth IRA?

    #104514 Reply
    Avatar RetiredERdoc 
    Participant
    Status: Physician
    Posts: 136
    Joined: 01/08/2016

    That would be a misnomer as a Roth has no deduction. Since it has the features of a traditional Ira (tax deduction) and a Roth IRA (never taxed if records kept and money spent on health care) how about calling it a stealth hybrid IRA?

    #105431 Reply
    Avatar spiritrider 
    Participant
    Status: Small Business Owner
    Posts: 1980
    Joined: 02/01/2016

    How about not using the misleading term IRA in any shape or form, because nobody should be thinking about it in that manner.  It almost always should to be used as Health Savinngs Account.

    You are either prioritizing current distributions for qualified expenses, I.e. Present-day HSA. Or you are prioritizing for maximum future distributions, I.e Retirement HSA

    Of course that is not as sexy as a “Stealth” label

    #105471 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4637
    Joined: 05/13/2011

    Got a post coming rating all the available HSAs as stealth IRAs. Lively came in at the top of my list. My current provider, HSA Bank, was 2nd. Don’t know if I can overcome the inertia to move.

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #105480 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4637
    Joined: 05/13/2011

    I’ve heard HSA bank and Optum are good choices. I want the usual – low fees, at least some decent investment choices (using as Stealth IRA).

    Thanks!

    Click to expand…

    Sorry to go on a an off topic rant, but this term is a personal pet peeve of mine and whoever coined this term should be drawn and quartered.

    Click to expand…

    I’ll take credit for it. I may or may not be the one who came up with it (probably not, but I can’t really remember) but I was certainly a major factor in spreading the word about it.

    Sure, it’s not EXACTLY an IRA (for example you can’t stretch it) and it is best used for health care expenses, but at its worst, it functions mostly like an IRA in that you can pull money out of it during retirement and spend it on anything you like while paying taxes but no penalties.

    Using the term in this manner allows me to motivate those who think it’s more similar to an FSA than what it actually is- your most tax-advantaged investing account, to actually fund it and use it. So I plan to continue to do so. And if you try to draw and quarter me,  you’ll find my house is surrounded by sandbagged bunkers filled with vikings and pirates armed to the teeth. So bring your posse!

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #105481 Reply
    Liked by Snag75, RocDoc
    Avatar spiritrider 
    Participant
    Status: Small Business Owner
    Posts: 1980
    Joined: 02/01/2016

    I still think the term does the WCI community and everyone else a tremendous disservice. An HSA account owner should almost never make non-qualified distributions if they have any other financial resources available. I wouldn’t be the one storming the Bastille because I know better than to treat it as an IRA. It would be the misinformed enraged peasants who squandered their tax free opportunities needlessly.

    #105501 Reply

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