Health Savings FAQs

Deeper Dive on Questions and Things to Know

In 2022, $3,650 for a single member per year or $7,300 for family coverage (2+ people). Contributions applicable to the previous calendar year must be made by April 15th.

Those with deductibles of at least $1,400 and otherwise meet the criteria of a high-deductible health plan (HDHP).

You can use HSA dollars to pay for qualified medical expenses. For example: prescription drugs, office visits, dental care, corrective lenses, hospital bills, Medicare premiums and more, for yourself, your spouse, or eligible dependents, all free from federal income tax. To dig deeper and see the full list click here to see IRS form 502.

You can still invest your legacy HSA and use it to pay for current or future expenses.

You can invest all your balance in anything you could buy in a Charles Schwab brokerage account. With Optum there are no fees once you have at least $3,000 in your account. We can help you invest and hedge your future healthcare costs.

According to Fidelity, close to $150,000. That number is problematic since it’s a future value number (includes depreciated future dollars). We think it’s better to think of typical annual OOP costs, and what that is as a percentage. The goal could be to quasi-annuitize it and only spend the interest.

You can be responsible for the tax savings claims plus fines.

No. The money is always yours and will follow you regardless of employment status or age.

There are many good choices, Lively and Optum are our current partners who work with Charles Schwab has no fees for balances over $3,000.

Very likely, over time. Most healthcare interventions are episodic, and the premiums paid of higher deductible plans allow for savings, especially over time for most people. The key questions are any differences in drug coverage between plan choices if that’s an issue, and financial fragility. How much would a X thousand dollar bill harm you? Premiums, however, are a big part to consider, and really the first deductible. Some studies show 80-90%+ of people are better off.

Whether spent now or in the future, the IRS requires you to keep your receipts. HSA providers have a portal with an option to upload images.

There is a self-service 3-min approach but we’re happy to help with any questions and to get you set up.

95% of HSA account holders don’t invest their HSA dollars, a key misstep for our future selves. One reason: HSA firms make the most money when dollars are parked in cash. We invest in a concentrated way, with an extra lens on future healthcare costs, and how we can maintain purchasing power in retirement. 

No, an HRA is a health reimbursement arrangement and is rarely portable and doesn’t allow investments. The money in an HRA is provided solely by the employer. HRAs are usually unfunded notional accounts, with no cash value. An HSA is a tax-advantaged account that can be used to pay for IRS-defined health care expenses, including long-term care and COBRA premiums.