EXPENSIVE HSA Mistakes To Avoid - Health Savings Account Warnings

***Lively has started charging $24 or forces you to hold a minimum of $3,000 in their HSA. Due to this change, I do NOT recommend them any longer. Please do not use this company. A Fidelity HSA is currently free at this time***

In this video, we'll go through some of the biggest HSA mistakes people make. A Health Savings Account is a great way to pay for medical expenses as well as invest for your future, but there are quite a few fine details you're going to need to be aware of to avoid any potential problems.

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Here are some of the topics we'll cover in this video:

- Importance of tracking receipts for your HSA and how to do it: To be able to cash in on any health savings account money in the future you're going to need to keep track of your medical receipts. This is especially important for the people who are investing their HSA money since they're not going to be withdrawing money until many years into the future.
- Withdraw expiration date: There is no time limit for when you can cash in a receipt. There is no expiration date. If you invest the money today and plan on withdrawing in 30 years then there will be no issue.
- Medical expense withdrawal rule for a health savings account: You can only withdraw money from your health savings account starting when you first enroll in a high deductible health plan.
- Will you use all of your HSA money on medical expenses?: We can't see into the future, but in this part of the video, we'll go through a report from Fidelity laying out how much they expect people to pay for medical in retirement.
- Much more including topics around health savings account studies, HSA stats by age group, 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. If you need help then contact a Certified Financial Fiduciary before trying anything that is mentioned in this video. I prefer a Fiduciary financial advisor that charges an hourly fee as opposed to an ongoing fee based on a % of your portfolio. Always remember that incentives determine the type of advice they give you so one that charges an hourly fee is less likely to be problematic.

[JarradMorrow]

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[RyChOr]

This information is gold. I've been putting off creating an HSA tracker for a few months now... this video is the perfect motivation to get it done. Thank you!

[carlosortega]

I'm 24 and I have a balance of $6300 in my HSA which is invested ! Im currently down about $400 in my investment so hopefully it will go up as the market corrects itself to put me further ahead!!! I legit left my mom's medical insurance so i can start building this account because i learned to true power of this account at an early age ! People need to know about this !

[Retiredmco]

Jarrad fantastic information! Over 55 maxing out my HSA every year. And Investing ALL of it into a very low cost S & P 500 index fund. Won't even think of touching it until after 65. I know you were time limited on amount of info you could give. At 13:44 there's a extra 1K you can put in once you're 55+. That's $ 5, 150 for 2024. Just subscribed to your channel. Keep up the great job.

[bpfeimst]

These videos have been helpful! Recently signed up for a high deductible plan with an HSA. Was skeptical at first bc of the idea of higher expenses. But your video explained the basics so well and how to ensure your preparing yourself for those potential higher expenses by having the deductible amount remain the HSA.

[tati.]

I'm so glad I did the right choice in getting this. I'm 24 and I did so much research and most mentioned if you are healthy and don't need much medical care this is great to have and can even help with other expenses when you retired. This is my first time obtaining health insurance and was so nervous about what to choose 😅

[jonrice]

Don't forget after age 65 that part B Medicare plans are qualified for HSA expenses. Most people currently pay $170 per month X 2 for a couple for Part B. That is about $4, 000 per year so I don't believe many folks will have problems finding qualified HSA expenses. My wife and I are both over age 55 so our annual HSA contribution for 2023 is $9, 300 which lowers our adjusted gross income to help with Roth IRA conversions and ACA subsidy income limits.

[catherinesanchez]

Jarrad, Thank you! Until this moment I didn't realize I could move the $$ around in the HSA and invest . DUH !!!! Sometimes, it's the obvious things that we miss isn't it??? Anyway, just came from my HSA home page, which I'm sorry to say I'd never visited until now and have moved 2/3rd of the money into some Vanguard accounts . We'll see what happens!!

[michaelandujar]

Thank you for another informative piece. I've been watching a lot of people and they smoke and or drink are overweight with a poor diet. I've been counting calories losing weight almost 70 lbs in 7 months I stopped drinking don't smoke exercise. I'm feeling great still eating the salads beans fish nuts oatmeal and such. I sleep better I have more energy I'm more upbeat. We have only one body might as well maximize it! Thank you again go team Molly 😆 man that 42 minute ad was killer 😂

[kerningandleading]

Thank you so much for going over how to track the HSA for withdraws in the future. I saw this months ago and now getting around to improving my tracking with some of the suggestions you have. The only thing that I think could be improved is using some sort of visual separator in the PDF name of the expense as the cost runs into the date and is a bit difficult to read at a glance. A simple - in between the cost and date should make it easier to skim

[Kylehoulihan]

What’s crazy is I have no idea what I’m doing and I really wish public school taught me how investing work and insurance. I’m definitely a deer in the headlights on this stuff and it’s giving me crippling anxiety.

[metalsmania]

I’ve been in love with the HSA since it’s inception but this is only the second job that has offered it. Three years & been maxing it out every year and will continue to. Trying to find out info about the investing side through my account with HSA Bank but no luck so far. Maybe I’ll just have to call them. Great video.

[gameplayer]

Lack of tracking was my biggest blunder. Just started to improve my process yesterday.

[uLLdgs]

I’m new to HSA and Thanks for clarifying the expiration date. I did not know that lol. I thought I’d have 60-90 days to get reimbursed.

[lilychiang]

My document naming convention is “Year-Month-Day_Business Name_Service or Item Purchased_Amount Paid”

[fironicalao]

Wanted to call out that the yearly IRS limit includes both the employee AND employer contributions. It makes sense that if there’s a employer contribution, the employee would put in less vs. those without a employer match.

[petereinert]

Protip: Don't use the debit card they send you. Use a rewards credit card instead, then pay it off at the end of the month.

[salvosscullstreet]

This is friggin great; thanks for your time and insights

[viviansprivatekitchen]

One of the best videos I have seen on this topic! Tell me, is there any reason to save the physical copies of receipts?

[amandaturner]

Hi Jarrad, I'm glad to see you putting out more content about this. I've been using your method of tracking HSA expenses from a previous video, but some of my receipts don't show how it was paid. For example, a hospital bill marked as paid in full but doesn't list the payment method. For all the IRS would know, it could have been my grandmother's cash, or a friend's credit card. In a situation like this, I have been also uploading my credit card statement pdf showing the corresponding charge amount. Do you have any suggestions for a better way to do this other than keep the receipt and save my credit card statement for each transaction?