The Complete Guide to Health Savings Accounts (HSA)

Health Savings Accounts (HSA) are one of the absolute best planning tools for retirement even though many people don't use them.

What is a health savings account? How does it work? Who is eligible for a health savings account? How can you implement a health savings account in your retirement plan strategy? If tax benefits and saving money for retirement are priorities for you, make sure to watch this video until the end.

Learn the tips & strategies to get the most life out of your money.

⏰ TIMESTAMPS
00:00 - Introduction to Health Savings Accounts
1:30 - Health Savings Account Explained
5:12 - Eligibility for a Health Savings Account
5:55 - Tax Benefits
8:47 - Health Savings Account Example
12:07 - Cash Flow for Health Savings Accounts
14:04 - Health Savings Account Rules

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[mikeatiger]

James, you mentioned the extra $1, 000 catchup to someone 55 and over. However, you didn't mention the way for the second spouse to contribute an additional catchup contribution of $1, 000. The second spouse over 55, just has to open a seperate HSA in their name to deposit the $1, 000. The total with this strategy, would be $9, 300. The $8, 300 for the family contribution and one 55 and over $1, 000 catchup contribution in one spouses name, and 55 and over $1, 000 catchup in the second spouses name HSA.

Thanks for the very informative videos you provide!!!

[davidfolts]

Thanks for the great content, James. Triple tax savings are not to be ignored!

[annap]

The most thorough explanation of HSA. Just great! Thank you.

[Andrea-vb]

This was very digestible, I’ve watched multiple videos and this explained it the best. Subscribed

[DuhIdiot]

13:48 Doing further reading, it appears that a non-spouse beneficiary can use the HSA funds tax-free to pay for medical bills the HSA holder racked up before he died. Someone correct me if I'm wrong.
Mr. Conole, with your competence, clarity, efficiency, looks, and nice set of guns, you are the Chris Evans Captain America of finance and retirement YouTube 🤣. Outstanding content!

[roderick.t]

Good info there James! Many thanks. We currently have one and realized its tax advantages for retirement. 🙌

[sarahsunsetpark]

Hi James, just a correction on your video. HSA from what I’ve read they do not allow you to use it to reimburse you on ACA premiums unless you are collecting unemployment and even then I think if you’re not yet 65 you may have a 20% penalty. so if anyone’s thinking of using their HSA to reimburse themselves for ACA premiums double check with the IRS. It seems you can reimburse yourself for cobra premiums, and Medicare premiums, but not ACA unless you are collecting unemployment

[kellymoore]

The CDHP and HSA have always seemed like a no-brainer to me, but I keep learning about more amazing benefits and ways to leverage this choice!

[johngill]

Great information, I learned something today

[outofstep]

Fantastic video. Very clear explanation of the mechanics of an HSA. Thank you!

[JJ-xvgs]

Great video, not a lot of videos out there on this kinda deep details. So much learned, thank you! Can you also do a video using Whole Life High Cash for infinite banking? And if you think this is a good strategy?

[stephenschulte]

Very fine and informative video on HSA’s!! HOWEVER I think 20 years with an annual 8% growth is VERY OPTIMISTIC! Could actually wind-up losing money! There are other places to do Las Vegas — not really in an HSA in my opinion. Steve on 7 May 2024

[OHDANB]

Thanks for the new video, James. I retired at 53 years old and took COBRA for the full 18-months after retirement and then enrolled in an HSA-eligible ACA plan. I was not ultimately happy with the ACA plan I selected, so I have been enrolled in a non-HSA eligible ACA plan since then. I am not able to use the funds in that HSA account to cover my monthly ACA premiums. I don't think that is an option for any HSA plan. I could use the funds to get reimbursed for eligible medical expenses. I was thinking about using the investment option and letting those invested dollars (hopefully) grow until I'm 65. The bank that manages the HSA charges a maintenance fee for the investment option, so I have not done anything with the funds as of yet as I'm not a fan of paying fees. Need to figure out something, though. Having $4, 500 sitting in limbo is not making me happy.

[ericgold]

I'm under the impression that only *some* HD health insurance plans are HSA eligible. Tread lightly. I took the cautious approach and sought out plans that said 'HSA eligible' in the plan name description.

[jomuellermo]

Your list of qualified medical expenses doesn't list premiums. Are you sure that's can be reimbursed with this HSA?

[NataliaLomnicky]

Finally, a clear explanation!! Thank #visuallearner 😅😊😍

[tinalewis]

Unlike a traditional IRA, there are no required minimum distributions with an HSA. Yep! No required minimum distributions!

[jallred]

Thanks James. Really enjoy your content. Quick question. Correct me if I'm wrong, but this plan is even better than a 401(k) in the worst case scenario that you don't need all the funds for medical. If you are contributing directly from payroll, then the contributions aren't subject to FICA taxes, unlike a Pre-tax IRA (401(k)). Correct?

[danlopez.]

It seems like it’s more than likely that we are going to be on a nationalized health plan anyway. What will all the HSA expenses be able to be used for in this situation?

[garybroughman]

Great Video! I just pulled $8750 from an IRA to fund out HSA. I assumed it would be a wash since I thought the HSA contribution was a top line deduction, Was I wrong? My concern is because of the once in a lifetime transfer you discussed.