Why HSA is better than a 401K Explained by a CFP®

5 GREAT REASONS TO LOVE HSA'S!
2022 contributions -$3,650/individual , $7,300 Couple and $1,000 catch up if over age 55
Qualifying High Deductible Health Plan (HDHP) annual out-of-pocket cannot exceed $6,900 for self coverage and $13,800 for family.

Link to Deeper Dive into HSA video -

How much can you contribute?
Who Can Use HSA’s?
What about the burden of having a high medical insurance deductible?
How does the money grow in a Health Saving Account?

[hsapay]

Thanks Brad~ You're right, like a Super IRA - we have also referred to them as better than a triple-tax-free 401k - If you get a chance we have invented a Venmo for HSAs called HSAPAY - we were recently featured on LoupFunds (VC company) investment blog detailing what we are doing to help people save into their HSA. Thanks Brad for holding it down in HSAs! ~Craig

[MadShenans]

Absolutely nuts. Thank you YouTube’s recommended algorithm for suggesting this video. Great work on being short, to the point, and real.

[CMBeee]

Really good advice!!! I’ve been saving into my hsa for over 10 years. Then I had a catastrophic and gruesome accident while hiking in Hawaii. 2 years of continuous medical expenses and now I have my health and I’m building up that account again. I would have been in financial ruins if I hadn’t had a well funded hsa account.

[av]

I think it is great for young people. Max it for 10 years while you are young and use the interest to pay for your deductibles on a PPO/EPO plan in year 11-xxx

[mikeng]

And if you use a FSA, Flexible Spending Account, use can use that to pay medical expenses making them all tax deductible. If you exceed the FSA you can pay medical bills with a points based or refund credit card.

[dBro]

1:27 Correct me if I'm wrong, but if you're transferring from your bank account then you're making contributions that have already been taxed. To take full advantage of an HSA you'll want it deducted straight from your payroll. I guess if you're desperate to put your money somewhere this makes sense, but I just can't quite make sense of the logic. I appreciate the video though! I'm excited to start my HSA next year.

[a.d.b]

The only time I've ever heard of a health savings account is when taking it through an employer where if you don't use the money in a year that you take it out then you lose it or if you leave the job then you forfeit the balance of the money. Your explanation left more questions for me than answers.

[AlianzaSur]

I think HSA is the best account ever for its tax benefit but here would be my priority, assuming I have employer match contribution benefit
1.- contribute to your 401k up to the amount of your employer contribution.
2.- the move your contribution to HSA up to the limit amount.
3.- go back contribute to your 401k plan

[shanejohnson]

Brad would like to talk with you about working together. Have an HSA product specific to self employed individuals.

[teeh]

I have one through my job. Can I still do these things with that?

[YungassPadawan]

Is this only for people who are healthy? Hdhp plans of course have high deductibles on top of only about a 30% monthly savings when compared to a low deductible plan (at least for me).

[Melissa-sox]

wow you are good looking. Anyhow the only bad thing about HSA is something I encountered helping a neighbor. The HSA, despite it being designated for certain medical expenses, disqualified her for medicaid to pay for her part b each month thru a medicare savings program. If she had used that money towards a traditional 401k, this wouldn't be an issue. Probably a very narrow population of folks

[DanielGennaro]

I'm about to open an HSA through my job at 31yrs old- never heard of this before. Couple questions. 1. Do you ALWAYS need to be enrolled in a HighDed.Plan. to contribute to an HSA every year- or just to start one, 2. Does anyone know how to connect money from HSA into brokerage account, take $ from brokerage account and invest in stock market? Mine will be through HealthEquity. Wish it was Fidelity, but I think its my employers choice. Thanks yall

[debramoreschini]

I am working on building my HSA. I have it coming from my pay check so the savings are even greater. Can you move your HSA to another custodian

[ianfurqueron]

This amuses me... I've been maxing out my HSA contribution for over ten years. Automatically deducted from my paycheck. Of course, I also max-out my 401k contribution as well.

[antonshadyrya]

My wife and I both have the same HDHP with an HSA option. Is it better to open one account for the both of us or two seprate accounts? It looks to be cheaper per monthly premiums to go separate and the deductible is half of what getting one together would be.

[williamkazenas]

The only downside is the preliminary requirement to have a high deductible insurance plan. If you already have superior benefits from your employer it would heavily cut into that tax free savings to switch over into a tax free harbor. Its definitely a unique option for someone paying for their own medical insurance who intends to use it as added tax savings but idk if the net benefit would work for others with above avg employer benefits

[bobstuth]

Is it true that you can save receipts from qualifying medical expenses, that you paid out of pocket, and withdraw funds from your HSA years later to cover those expense with no tax or penalties?

[Manatti]

Just to understand this correctly...You cannot take this money out prior to 65 unless it is for medical expenses? And, after 65 you can take it out for "whatever you want"?

[shadricosuave]

I'm with a reimbursement plan that fulfills the old ACA mandate but is not technically insurance... it's l
Liberty Health Share with a 1700 deductible. How could I qualify for this type of has. I'm a sole proprietor.