If You Have an HSA, DON’T Do THIS! - Health Savings Account For Financial Independence

**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, I'll go through the 6 HSA mistakes to avoid.
An HSA (Health Savings Account) is one of the best investment accounts available to someone pursuing Financial Independence or Early Retirement. Although the name has "health savings" in it you should treat it like a "health investment" account to get the full benefits they offer.
Someone who isn't pursuing FIRE can still take advantage of the benefits as well. When you use an HSA account you get access to triple tax savings. Not only do you avoid paying taxes when the money goes into the account, but you also skip out on paying taxes on the growth of your investments and when money is withdrawn from the account.
The fact that you're able to invest money within an HSA is another added bonus as well. If you instead use this account as an additional retirement account by investing the money then you could grow your account to over $300,000 as a single person or over $680,000 as a family.
Check out this HSA video where I go through even more tips to maximize a Health Savings Account: • The Real TRUTH About A...
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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.
#HealthSavingsAccount #HSAAccounts

[@JarradMorrow]

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[@wmmarquez]

Can you share your spreadsheet?

[@narkmrsou9522]

Great insights. Is it okay to pay the medical bill from a credit card and reimburse myself the funds into my account to pay those credit card transactions? Will this risk an audit ?

[@JohnJohn-wr1jo]

HSA's are one of the best all around investment vehicles going that few utilize. I retired 3 years ago. Had maxed my HSA out for over 15 years. Invested 90 % in growth stocks. Retired with over 130k and have yet to touch it.

[@JarradMorrow]

👍🏻

[@smpoinde]

I consider myself rather informed as an investor. However, this video helped me change my tune! I invest in my HSA but I’m going to follow your strategy. I plan to just let it grow without spending it, and shift it over to where there’s not a $1k min (I had no idea this was an option out there). Simple and yet, brilliant. Thank you!

[@JarradMorrow]

👍

[@DontBother_YT]

As an employee for a HSA/FSA custodian, You missed a crucial part of your FSA description. While you were accurate on the use-it-or-lose-it aspect, the funds that are contributed are actually funded by the employer through the payroll deductions, not directly from the consumer. FSA users have the ability to elect how much they think they will need in a given year, up to the IRS regulatory maximum. But the reason that it is use-or-lose, is because those funds would go back to the employer that provided them the FSA in the first place. Also, there is a disclaimer that you either didn't know about or you simply forgot to mention, but most HSA institutions will charge a fee for transferring those funds out from your primary HSA to the "investment HSA." So remember to read your fee schedules and your T&C's!

[@JarradMorrow]

👍

[@KatieLibby1315]

We were funding my wife's HSA directly, rather than by payroll deduction. Then we learned she would save 7 1/2 % in taxes by using payroll deduction.

[@NYCisland]

Glad you figuired that out. HSA and FSA are always pretax funded.

[@goopcat]

Can’t you just count your HSA contribution as tax deductible at the end of the year?

[@shawnebeal6863]

You will save federal and state income taxes as well as social security taxes Average savings is 24%

[@zanesanchez9801]

Yeah you get a tax deduction at end of year… I suppose you can get a small amount by investing what you save through the year vs YE, but can’t see how you get to 7.5%???

[@Simon-vo7gi]

@@goopcat HSA contributions are still subject to SS and Medicare taxes. Payroll deductions are exempt.

[@eboniesimone]

Thank you for sharing all this HSA knowledge! I just switched over to an HDHP and signed up for the HSA with financial independence in mind so this series of information is great!! I wish I knew this sooner, but better later than never! So again thank you so much! :)

[@JarradMorrow]

Glad it was helpful! Let me know if you have any more questions.

[@waltermitty7452]

@@JarradMorrow Great video. Maybe mentioned in your other HSA video, but at age 65 I think you can make withdrawals for any reason, and use the money however you choose, and the withdrawal is just treated as income for that year. I'm not sure, but I think this still allows you to dodge tax on the gains, but your just paying take on the withdrawal amount.

[@243wayne1]

@@waltermitty7452 Correct sir.

[@rereAL205]

Didn't know you could move your employer money. I will be doing that, as they are forcing me to keep 3k uninvested. Thanks for this video!

[@JarradMorrow]

$3k?!?! Whaat? Which company is making you do that?

[@rereAL205]

@@JarradMorrow HSA bank 😩

[@JarradMorrow]

Ouch! Thanks for sharing.

[@rue3706]

A protip is HSA/FSA funds can be used for a surprisingly wide range of skincare products if you dont just want to by medicine and medical supplies with it

[@fepethepenguin8287]

And massages and chiropractor

[@danielmckenzie4227]

Did not know I could use a different HSA other than the one my employer selected! Great info

[@mrw417]

This is great advice, but It's important to let people know that the high deductible health plan available to them may be way less scary than they (or you) think. Many employers have tuned the coverage in their HDHP offerings to make them more desireable to employees. My employer, for example, excludes mental health, a huge list of medicines they call "preventative", and my first ER visit from the deductible and coinsurance requirements.

[@Techreux]

Interesting about the fee charge, was wondering why HealthEquity was going to start charging us $3.95/ mo AND require a ridiculous $2500 min balance. Thanks for that tip. I'm not able to contribute anymore, I'm retired.. but will definitely find another fund that doesn't have the "high cost" associated with it.. I just checked with both Fidelity and Lively.. and they are not free. There is a monthly service charge as well on other HSA's I looked at. Lively was not totally free.

[@JarradMorrow]

I have an HSA with Fidelity AND Lively and can confirm that neither of them have ever charged me a fee. Not sure where you're getting that info, but it's incorrect.

[@marknoda9887]

@@JarradMorrow hey jarrad, he may have it into a professionally managed account called “HSA Go” which charges a 0.35% yearly fee for balance above $25k!

[@DON-CLOS]

I’ve always used HSA , I figured I rather put the money away and use it when needed , instead paying for an insurance I don’t use all year long and the money is gone the hsa money will be in the account when needed

[@justingold9845]

Great video! I had no idea I could do a transfer to another HSA provider. I will be switching to fully invest out my cash balances. Thank you. J. Gold

[@amberlyflorio-schiavulli4610]

My fiancé has an HSA. He is very healthy. He has two children from a previous marriage and she provides insurance for them( he has primary residential custody) The oldest was born with a heart condition. I have been a bit concerned about health insurance when we get married. I have an autoimmune disease and some chronic issues as well as pregnant with our 2nd child. I currently have insurance for myself and our son and know I will lose it when we get married. We are trying to figure out what insurance plan would be best and if we should get one that covers all the kids instead of getting the older kids through his ex. This topic is very confusing to us. Thanks for making it easier to understand.

[@johnsonajayi7846]

Let the children stayed on the ex plan.

[@mikebarnes2294]

I also agree with not relying on your HSA provider to track expenses for future reimbursement. Even if you don't really want to you can end up with different providers over the years based on job changes and your employer changing providers (and also providers getting acquired by other providers).

[@earlwilliams5473]

my thoughts: only use it for the primary bills and not the miscellaneous stuff. lets not forget how senility can screw it all up too...

[@JarradMorrow]

Thanks for sharing

[@BobFosterMedia]

I do use my HSA funds for spending. So I just thought I'd mention re: the candy bar example, when I swipe my fidelity debit card at a store, it only covers eligible expenses and asks for another payment method for the rest. Honestly, sometimes I swipe my HSA card first even if I'm not sure I have eligible expenses in my cart, because it will only cover those items. Yes, still keep all receipts. I'm trying to transition to more of an investment strategy, so thanks for this video. The first 2 years of my HSA I met my deductible and out of pocket due to ER trips and surgery. I chose HSA because the premium difference is so much with my employer's plans that it's very unlikely I will save money with a low deductible plan and the premiums are a huge % of my base pay.

[@DNVlogsLife]

Remember ink from receipts can fade 😢

[@JarradMorrow]

Yep, which is why I recommend keeping a digital copy

[@aarontheblackfox]

As a diabetic, it sucks to have HSAs forever out of reach. I heavily use my low deductable plan and get my money's worth though.

[@charlesroulette5296]

The idea that a HSA is not compatibly to someone with current medical bills is just not accurate. Our Current HSA insurance is $28.00 Bi weekly where as the regular insurance is $280. bi weekly (employer provider). That's over $6,500 we would have to pay on regular insurance and still pay deductibles and co pays. where un limit is around $,4,500 deductible kicks in whereas in the HSA we still pay the co pays and deductibles only.

[@nmernst]

The whole thing about investing in an HSA is brilliant. I do keep some cash in the event I have to cover my deductible all at once but otherwise the rest goes to invest :)

[@JarradMorrow]

Well said!

[@Dpaq13]

It you can afford to pay the deductible from another account you’ll have more compound growth in the future

[@artgressick]

I use fidelity HSA and invest near 100%

[@JarradMorrow]

Glad it's working for you! Keep it up!

[@vonnnner]

Great video Jarrad 🤙

[@JarradMorrow]

Glad you enjoyed it

[@dinayerex1646]

Just use Quicken to track expenses and attach receipts to each transaction. Save yourself some time!

[@moblsv]

Good luck getting your money from Health Equity to Lively. I'm coming up on 4 months of run around with no end in sight, all while the money sits in limbo.

[@JarradMorrow]

I've done it 20+ times with zero issues. Sounds like this might be a "you" problem. Ya might want to reach out to someone to figure out what the problem is 😂

[@jonnylinford]

There's some really awesome information here. I actually use a Google form to give all the information about expenses and upload my receipt

[@JarradMorrow]

Good idea!

[@Justin-cv3ck]

This video was extremely helpful. Thanks so much for posting these. I have a few questions about this because I just recently (today) enrolled in an HDHP & HSA starting in 2023 and my employer uses Health Equity. 1. When I move / transfer money from Health Equity to Fidelity does Health Equity charge any fees? 2. What is the best method in moving the funds? Contact Health Equity to get them to move it to Fidelity or contact Fidelity to get them to get the funds from Health Equity? 3. Does Health Equity have minimum balance requirements? If so, is there any way around that? 4. Do I have to always initiate moving funds from Health Equity to Fidelity or is it automatically done?

[@JarradMorrow]

Great questions. 1. In 2021 I completed at least 8 transfers and 1 final transfer in 2022 out of HE. I was never charged a fee. Not sure if they've changed their policy since then so double check. 2. You'll want to initiate the transfer with the HSA provider you're sending the money to. If you're going from HE to Fidelity then you'll do it through Fidelity. 3. There is usually a minimum cash balance required in your HE account. It's different for everyone depending on your employer. There is no way around this while your employer is still contributing to the account on your behalf. I tried to "game" the system by transferring out more than the minimum and they sent me a warning that my account would be closed if I did this 😂. Not a good idea since you need it to stay opened so your employer can continue to contribute for you. 4. As far as I know you'll have to manually initiate it every time. Double check in case they've made this option available.

[@Rickloo-bl3qd]

Problem I have is my HSA custodian UMB Bank, charges $25 per transfer out of the account. Negating any savings of a monthly investment fee. So I am stuck with them, I am not going to pay $25 / mo to send to fidelity

[@pfrancescutto]

Quadruple tax free if contributions are being deducted from payroll. No FICA taxes.

[@JarradMorrow]

👍

[@markym998]

One thing I don't think I heard mentioned in the video -- some employers will also contribute funds toward an employee's HSA if they sign up for the HDHP + HSA. This is a common benefit at least among some large U.S. employers. So, for those who work for such an employer, that can be another significant component to that HSA growth.

[@johnsonajayi7846]

Yes, my employer contributes about $120 monthly to my HSA, this is in addition to the money paid on my behalf.

[@g.t.richardson6311]

My wife’s employer puts a 2800 lump sum into her account every January She contributes another 100 per pay ,, then we max out with our own lump sum at end of year. That system works for us

[@cabomix]

I use lively they answer the phone and they are super nice. Fidelity has never answered the phone or called me back, ever!

[@Ryan-fy8bx]

I work in finance and have seen some HSA accounts worth a few hundred thousand. Not sure how that happens. HSAs are relatively new products….

[@dwp138]

It was all simple and straightforward until the part where you want to pull out 100k, so you need 100k in receipts

[@Omego2K]

I am sick and always hit my out of pocket max. If you can withstand the immediate financial burden then an HSA is still the financially a better choice. It's many times better than an fsa with non-qualified insurance over say 20 years.

[@JarradMorrow]

👍🏻

[@garyb711]

Love the tips on tracking expenses. What qualifies as a receipt? When I pay medical bills online, I don’t get a traditional receipt. I have the bill, hand written notes that I paid it, and I can see my account has no outstanding balance- but what will the IRS want to see?

[@DontBother_YT]

It may differ between different HSA providers, but the minimum requirements for substantiation of appropriate fund usage that my employer requires are: Date of service, Description of service or products purchased, Name of practicing business and/or the physician's name, and the total expense of the service to be paid by the consumer/patient.

[@corinnehernandez4549]

When I pay medical bills online once the payment is processed it reads accepted and shows confirmation number, I print that as proof of payment.

[@jaimerios7920]

I started an HSA almost 10 years ago - since retired. I even ran a comparison between my wife's regular health insurance cost and my HSA and, even including the deductible, the HSA cost was less. The HSA premiums were about half the standard insurance premiums. We both worked for the federal government. Not sure if it's the same for non-government employer's insurance programs.

[@Highley1958]

HSA premiums? What the hell are you talking about? There's no such thing.

[@waynet5975]

What? HSA premium?

[@g.t.richardson6311]

@@waynet5975 he’s talking about paying reduced insurance premiums since he was on a high deductible plan vs his wife’s higher premiums on a traditional plan. I’ve experienced both

[@pompunpopularpodcast]

With the faith in banks plummeting, for good reason, is it still advised to invest your money with your HSA?

[@JarradMorrow]

This is relevant to the investing side of an HSA as well: kzbin.info/www/bejne/bKXLhoSAqtyBaLc

[@sharonphillips114]

Great info! Thanks

[@JarradMorrow]

No problem. Thanks for the feedback!

[@scotth5503]

Are you aware of a way to automate the transfer to Lively? Paylocity in my case. Rather than filing a form every month.

[@JarradMorrow]

I'm not aware of a way to automate it at this time

[@joshelbahrawy]

Isn't even still worth tracking your various receipts and expenses and such if you use an HSA debit card? Everything is auto logged then, no?

[@tinotendasora3971]

Great tips,especially the reciept tracking. I have the same process and providers as you but i was leveraging the Lively expenses tracker.

[@JarradMorrow]

Thanks for sharing!

[@csun83]

Thanks for the useful information, Jared. If I start with a qualified high deductible Health plan, invested money using my HSA account, but then later I switch health plans that no longer qualifies as a high deductible plan, do I need to cancel my HSA account? Or can I keep it so long as I don't make any further contributions to it? And are my gains from the initial investment still tax free? Can I still use that initial contribution for qualified medical expenses even if I don't have a high deductible plan?

[@strangergranger10]

Hello! I have a question? I left my job that I sugned up for the HSA account. I haven't reach the $2000 mark to be able to invest it on the market. Also, the fees is eating my money every month. I am charged at $3.95/month and the broker called Health Equity, and if anyone know this company, please feel free to share some ideas. My new company offers FSA instead. Will my HSA be able roll it over to FSA? Or am I still able to contribute on my HSA this year and to the following years to come? If yes, how can I contribute?

[@JarradMorrow]

You can move your Health Equity HSA to a Fidelity HSA which is free. You'll initiate the transfer through your Fidelity account. Your HSA will not be rolled into an FSA because they're completely different things. You cannot actively contribute to an HSA if you're not enrolled in a high deductible health plan.

[@amyx231]

I wish I’d known about HSAs when I first started working! I’d put in $500 and use it all every year. 😅

[@dida0824]

My employer has a Health Savings Plan instead of an HSA. Basically its an HSA you can't use till your retire or leave employment.

[@respinoza89]

Please forgive my ignorance as I am new to HSA. This is my first year having one, and originally I thought it was just a savings account and I selected my auto deposits from my check. I received paperwork for it and just put it in my drawer. At work they told me I had to re-enroll by the week so I finally registered online and started reading into it. The problem is that this whole year I’ve had my healthcare marketplace insurance and was using it all year. So I just learned I cannot have both, at least I think so. What can I expect come tax season?

[@JarradMorrow]

I'm not an accountant so I can't answer that

[@humbertolopezfranco7296]

Ok but $1k as cash out of the tens of thousands you'll add is not too big of an issue

[@JarradMorrow]

👍

[@LexTomKy]

When my company was bought by another company, my HSA did not roll over

[@JarradMorrow]

You have to do that on your own

[@LexTomKy]

@@JarradMorrow then let ppl know this on your channel and my employer said "it doesn't rollover" and didn't state that i could do it myself. I didn't lose a lot, but who got that money?

[@JakeHaugen]

How long do you wait to cash out of the HSA? Is it something that you’re planning on waiting 20+ years for and just eat your deductible and medical expenses or do you do it more regularly such as quarterly or just when the expenses come up?

[@JarradMorrow]

My plan is to hold off on using the money for as long as possible. 20+ years is the target right now

[@kona6451]

Yes think of it as tax free investment. I plan on using mine for actual medical expenses when I get old. Advice. starting now save every medical receipt now and you can cash out whenever you want. Even years down the road.

[@MrFunkadeIic]

Why don't you create a column in the Excel sheet right next to "Receipt Uploaded" and actually insert the PDF file of the receipt?

[@JarradMorrow]

You could do that if you’d like 👍🏻

[@siriusjones956]

I had an employer funded HSA. When I left the company. I did not have the option to cash out or transfer. Optum. Oh well.

[@Milwaukee307]

I just opened my first hsa with fidelity. They offer an hsa debit card. Wouldn’t that be easier than keeping receipts because there will be records of debit card purchases?

[@allisoncornell5823]

A new puppy!? Congrats!

[@JarradMorrow]

No no no, he was my first dog before I got Molly. I should have clarified. Sorry!

[@allisoncornell5823]

@@JarradMorrow Oh really? I've never heard him mentioned, so I had assumed you'd only had the one dog! 🐕

[@allisoncornell5823]

Or is it just that Cooper is the rich one and you and Molly have to work for your money? Lol

[@JarradMorrow]

😂 Cooper is the king and we're just little peasants

[@dwalker6868]

Thank you

[@JarradMorrow]

👍🏻

[@bhnai]

I'm no longer with my employer and don't have a free HSA account. There is a monthly admin fee. The money that is in HSA. Can I transfer that over to my checking account? Is a tax-free money

[@JarradMorrow]

If you want to avoid paying penalties then you'll have to transfer to another HSA provider.

[@bhnai]

@@JarradMorrow So, does that mean we can only transfer from one HSA to the other but cannot close the HSA and transfer the funds to a Bank savings account?

[@boonezavik]

12:29 just a heads up I saw two videos where you mentioned baby sitting services are allowed in a HSA and that is not true. I don't know if it used to be allowed or not, but it is not allowed as of 2021.

[@JarradMorrow]

Thanks for the heads up. I pulled that info directly from Health Equity’s (HSA provider) website so I’ll have to look more into it 👍🏻

[@dylanshabtai4554]

Daycamp? Isn't that for FSA daycare?

[@janellelevesque2170]

You transfer out of health equity every month? How do you get around the $25 transfer fee to Lively?

[@JarradMorrow]

There was never a transfer fee to do this. You might be mixing it up with the $25 fee they charge to transfer money out of HE to close the account. I just closed my HE account and they charged me that $25 to do so

[@blankprivatecompany9296]

What if your job doesn’t offer that can u get a hsa without the job offering that

[@JarradMorrow]

All that matters is that you’re enrolled in a HDHP when you contribute

[@tejas7827]

Can't we use HSA credit card statements as a proof of payment for medical expenses? Collecting receipts for many years not viable option in my opinion.

[@JarradMorrow]

Not sure. You’ll have to confirm. I’m keeping receipts either way just in case

[@nailsofinterest]

Mine has the option to take a picture and upload to my account. I like that! Plus I store it on Google too

[@donnamaepate7704]

Wow they pay for those retreats?! I didn't know that.

[@jasminepeeler4968]

Soooo… what if you used money from your HSA for a non medical expense. 😬

[@JarradMorrow]

Haha uhhh I don't have an answer for that other than don't do it again :)

[@dddmmm21]

But here is the problem (or question): What is the point of ending life with all this money, if you cant touch it for other general expenses? Can I later withdraw part of it for non-medical expenses? What kind of taxes will I pay then? And finally, what happens to this after when I am done, will may kids end up with the tax bill? Tks

[@jenboisvert2171]

Thanks for the great information! Do vitamins and heath club fees count as eligible?

[@JarradMorrow]

I don’t believe they are at this time

[@JBadalamente30]

Ok so here's what I'm not understanding about all of this. I have an HSA through my employer (HealthEquity). I was told that, rather than spending the money in the HSA account on any health-related expenses, that I should pay for these out-of-pocket but still track these expenses in my HSA account. Why would I reimburse myself if the HSA money that I am withdrawing from is currently being invested (I have a $2,000 cash reserve that I can't invest but other than that the rest of the money is being invested)?

[@Jonathan-gz6tu]

Awesome video that I've shared with a few Co workers. I was wondering are there limitations to the purchase locations? For example, I want to buy some otc allergy pills from Costco. Is that an issue? I'd also like to buy some cpap supplies from eBay. Would that be an issue? Thanks for all of the info!

[@JarradMorrow]

Your purchase at Costco should be fine, but I’m not 100% on the eBay purchase since the items might be considered “used”. Don’t know the rules around that to be honest. You should be able to give your HSA provider a quick call to ask

[@Jonathan-gz6tu]

@@JarradMorrow awesome. Thanks for the quick response and the valuable videos!

[@JarradMorrow]

Absolutely! Let me know if you have more questions

[@ManiacFitness]

What do I do i had a hsa thru my employer that I didn't even kno about until I did my taxes earlier this year and had no clue what it was bc I never recieved any info or paperwork on it. When I brought it up to them they claim to have no clue where the money is and when I called the insurance company they ssid its not with them and gave me a few places to try and none of them had my info or an account on file for me. I've since canceled the insurance bc it was just way too expensive for what I make a week and now have $5k sitting in an hsa somewhere that I def could have used a few times while my hours got cut. I have no clue what to do or why I don't have access to it or where to even start?

[@JarradMorrow]

If your employer was deducting money from your paycheck every month to contribute to an HSA on your behalf then they definitely know where they sent the money. Double check your pay stubs to confirm that money was deducted, every pay period, from your paycheck and sent to an HSA provider.

[@Robert256]

I Don't understand why you're going through all the hassle of tracking the receipts... When at the end of the video you say if you need $1000 then you just find receipts that add up to $1000...and then what? You now have $1000 for a new vacation? It doesn't make sense to me whole part about 'cashing out'. The money is to pay medical expenses. How do you 'cash out' without just paying for doctor visits and things?

[@Simon-vo7gi]

Since lively uses TD Ameritrade? Won’t that eventually be managed by Charles Schwab?

[@jeremyh3445]

Hey Jarrad thank you for the information. I’ve recently caught on to the benefits of an HSA and am contributing. I Didn’t know I could move the money so thank you! I have a question that bugs me. Isn’t it doing yourself a disservice to reimburse many years later? To take it to an extreme if you spent $1000 today then reimbursed yourself 30 years later at retirement it’d be worth way less. But the money will have grown at 5-10% (hopefully) so that factors in too. Still inflation would hurt you right? Seems to be beneficial to pay the expenses now with untaxed income.

[@gregshirk6176]

If you invest in a standard S&P500 index fund that averages around 7% returns over 30 years, that 1000 dollars will be $7,600+ in retirement. This is far more than inflation and better still, the money will still be tax free if used for a medical expense. This is the triple tax benefit. Use time to your advantage and let the money grow before paying off medical expenses.

[@acefr8816]

If you use the pre-tax $1000 for medical expense now, you avoid the inflation factor, but lose the benefit of compound interest. Even in 15 years, with 7% grow annually, $1000 will turn into $2759, so if inflation does not grow 276% in 15 years, you will come out ahead.

[@golddividends]

Question about HSAs and what you can spend it on. My wife uses her HSA to cover her monthly visit to a massage clinic. It’s therapeutic for her and saves her receipts and the business accepts HSA money, but is this technically a medical expense? She is under the assumption that it’s an approved expense because it’s a stress reducer and helps her mental health and overall mood. Is this okay to use or does she need a doctors note saying she needs the massages to help her mental health? Thanks.

[@svetoslavdimov1928]

Hello Jarrad Currently I’m investing my HSA in Vanguard target fund 2040 . Is this a good option

[@isaacyoung1868]

just save the receipt? no need to save bills or health insurance EOB's?

[@JarradMorrow]

Correct

[@darrinmc]

I have an HSA but I'm not sure about what I should be saving for reimbursement later. I usually get a bill in the mail from the doctor which I then pay by credit card or online banking payment. Is the bill from the doctor enough for receipt purposes? Or does it have to show the payment applied?

[@JarradMorrow]

The bill from the doctor is what you need to keep a record of

[@ishapurandare5685]

Thank you for the video! Question - Can I save bills, or do they have to be receipts? If I don't withdraw from my HSA account, would be obvious and accepted that I made those payments out of pocket?

[@JarradMorrow]

A bill will work just as well as a receipt. As long as it has the important details like date, $ amount, the business name, and what the medical expense is then you should be good.

[@ishapurandare5685]

@@JarradMorrow Thank you, really appreciate it!

[@ugamez89]

You said you transfer the money from health equity to lively every month. Does that mean you have to keep both account open? you can't just rollover into Lively and get rid of Health Equity?

[@JarradMorrow]

Can’t get rid of HE completely because my employer has chosen them so that’s where money from my paycheck gets deposited. Now that I’ve left that employer my plan is to close the HE account

[@mrmovieprop]

Its looks like you had treatment for a baby yoda bite. It was your most expensive treatment so what was the treatment like?

[@hexfly2795]

I might be more interested in what brand t-shirt you are wearing…

[@JarradMorrow]

😂 you’re the 3rd person this week that’s asked me that. All of the shirts I wear in my videos are American Apparel. They’re cheap and I like the fit so it’s a win win.

[@hexfly2795]

@@JarradMorrow Now if I can just fit them into my budget... LOL! Thanks for your videos!

[@JarradMorrow]

😂 hopefully you're setting aside a little bit of $ every month for clothes.

[@dougmarthaler3066]

Is any advantage / disadvantage to paying the other medical expense immediately with the HSA vs “saving up” expenses paid out to be reimbursed later…?

[@MinakoW99]

I have the same question... if I can afford it to pay out of pocket and leave my hsa alone. And if I need money in the future I can use receipts from years ago to take out money???

[@Jonathan-gz6tu]

Thats the whole purpose of the video. To explain that leaving that money alone, and allowing it to be invested, is better than just using the hsa card to pay for it immediately.

[@Ryan-fy8bx]

Fair video but don’t appreciate the clickbaitish title.

[@JarradMorrow]

👍🏻

[@Svkgowda]

How do we transfer money from HealthEquity to Fidelity every month? Won’t it be considered a distribution?

[@JarradMorrow]

You start the transfer process through Fidelity if that's where the money is going. It won't be considered a distribution as long as the money makes it into your Fidelity HSA and you don't keep it. I've done this process at least 20 times over the years between HE and Lively as well as HE and Fidelity. I've never run into an issue.

[@Neukids]

I was told that the explanation of benefit EOB is enough. Do you need to keep both the receipt and the EOB, and if only one which one is more important

[@michaelauskings1352]

If you are trying to claim expenses retroactively, are you subject to the "approved" items at the time of the claim or at the time of the expense? For example, if eye drops and cough medicine are currently considered "HSA Approved" and I spend $5000 on these items over the next 19 years, and in year 20 the rules change and these items removed from the eligibility list, does that mean I can no longer claim these past expenses?

[@BenBrand]

That would be my worry, seems like when I retire there will be enough medical expenses from having to pay for insurance without employer help to draw down the funds without needing to save 20 years of receipts.

[@feliciafelicia6965]

Am I hearing this correctly that you just stockpile receipts and submit/cash out from your HSA as needed?

[@JarradMorrow]

Yes, that’s correct. Except I haven’t cashed any in and don’t plan on it for many years so my money can stay invested within the account to grow.

[@yanivpete]

There's no time limit for when the expense is incurred and repayment initiated? I thought both had to be in the same year.

[@MrRandyp01]

@@yanivpete I thought that too. Basically thought you had to spend the money on medical expenses the same year or lose the tax advantage of the deduction from payroll.

[@rnt45t1]

I swear low deductible health plans don't exist anymore. I work FOR AN INSURANCE COMPANY and the BEST plan they offer has a $3000 deductible.

[@JarradMorrow]

Depends which provider and plan you’re using

[@jaremy511]

Do you have to fill out a transfer form every month from Fidelity? Or is there an automatic transfer option?

[@azaria8825]

@Jarrad Marrow Does it cost to roll your HSA to Fidelity or Lively? Are there special benefits? Wait, so I can hold a receipt for 30 years and pull it out after 65 with no tax or penalty (assuming it's on their list)?

[@JarradMorrow]

It's free with both of those providers. I can't 100% speak for other HSA companies, but I'd imagine most of them won't charge a fee. There is no "expiration" for when you can withdraw money from your HSA, tax-free, as long as you have a record of the receipt.

[@azaria8825]

@@JarradMorrow Thank you Jarrad. I appreciate your sound and detailed videos.

[@davidczarco]

Don't you have to pay taxes on hsa money not used on medical bills?

[@JarradMorrow]

Yes. The account basically turns into a Traditional IRA from that standpoint at age 65. If you withdraw for non medical before that then you'll pay taxes and a penalty.

[@sangoamolo3093]

I just set up my hsa with my employer. It’s with health equity but I also have fidelity. How do I switch it to fidelity? Is there a video or is it in the link you mentioned in the video?

[@premkilaru]

Great video! How do I know my insurance is eligible for HSA account? I have In-network $8000/Family and out-of-pocket maximum $13,200/Family

[@genejones7983]

I know what medical items qualify but what if I buy it on Facebook market place or craigslist are new but have to state used items HSA Qualified. I could not find this on the IRS page.

[@gulab3483]

I would imagine as long as you don’t use cash and use some tracking app like Venmo you should be able to deduct it as expense. Since hsa provider want you to upload a receipt so as long as you have some sort of receipt you should be golden.

[@JarradMorrow]

Good question that I’m not 100% sure what the answer is. I’d personally only purchase from a original seller as opposed to the secondary market.

[@howjoec2638]

I diddnt invest my hsa and and it got forfitted can i get it back

[@JarradMorrow]

HSA money doesn't get forfeited if you don't use it. Sounds like you're describing an FSA which is completely different from an HSA

[@howjoec2638]

Ahh yes your correct thanks sir

[@johnnycircus7463]

Jarrad, how long can you sit on a receipt before submitting it? If I open an HSA in 2023, and keep track of all my receipts, can I submit them for reimbursement in as far along as 20 years so to maximize invetment returns?

[@JarradMorrow]

There's no expiration date for when you can cash in old receipts

[@Jonathan-gz6tu]

@@JarradMorrow when doing this 20 years from now when I cash it all (or a lot) out, do we just expect an irs audit? Is it possible they never even ask us for these receipts?

[@johnsonajayi7846]

@@Jonathan-gz6tu : IRS will always ask for receipt, there is no statute of limitation on that.

[@Jonathan-gz6tu]

@@johnsonajayi7846 everytime some pulls money from hsa, the irs will ask for a receipt? How?

[@jeannettedrown7687]

Just found your channel and subscribed. Solid information. I didn't know you can move your HSA money from your employer's company to Fidelity or the other one you mentioned. That's wonderful- I'm going to check that out. Do you know if there's an option like that for traditional 401Ks? My employer's 401K has high fees and poor fund options.

[@KatieLibby1315]

You can but money your employer puts into the HSA they sponsor does not have FICA removed , which saves some dough.

[@ELYinc]

Question regarding proof of receipt - what would you recommend in an example if you purchase HSA-approved items like eye drops, cold medicine, and feminine hygiene products at a store like Walmart, but the receipt also shows line items for other items like a vacuum cleaner and groceries/household items? Is the receipt eligible if you're only requesting reimbursement for the HSA-approved items? Would it be better to have it separated? And would you get imbursed for the sales tax charged?

[@HarperPolo]

Purposely shop for HSA things on one receipt.

[@tumblruser23]

Do you still have to pay any fees on the HSA your employer uses? I think I'll still be assessed a $1/month fee? But having the extra $1000 to invest will be well worth a transfer I think - just bummed about not being able to avoid all fees

[@coleaceret]

Yessir, I'm all about those 4 pillars! My mom is trying to get me to pay for health insurance but I'm trying to find a smarter way to pay for my medical expenses. I'm 20 years old in good shape, and I focus on all 4 of those pillars every day. I was thinking of trying to get an HSA and a CareCredit card instead of paying for monthly insurance. Let me know if you think this is a good idea, but if you don't reply it's cool. Thanks for making the videos!

[@corinnehernandez4549]

My understanding is you can't just apply for an HSA as stand alone insurance. You have to be enrolled in a HDHP health plan. I agree with your mom, you should be enrolled in a health insurance plan through your employer. Right now you are young and health but it's important to keep up with health maintenance.

[@johnsonajayi7846]

If you are 20 years old and you are working, if your mum is employed, you can stay on her plan until you are 26 years old. You can help her with $200 per month or whatever amount she needs.

[@raymondlachica8966]

HSA is better than FSA

[@JarradMorrow]

👍

[@jasonfennema5576]

Great video! I also have Health Equity through my employer and move it to Fidelity. Is there a way in health equity to move it quickly every month? Fidelity says I have to go through them and it takes about a month to move money.

[@JarradMorrow]

No, there isn't a way to make it move faster. Once the transfer request is submitted to HE you might be able to call them to move the process along, but that would get annoying if you have to call them every single time.

[@skunjibe]

Is moving the money from Health Equity to Fidelity free of any charges??

[@JarradMorrow]

Not unless you’re closing the HE account. I just closed my HE account and was only charged $25

[@wwjd8172]

When moving money from Health Equity to another HSA provider, am I allowed to move with it, the portion my employer matches as well?

[@JarradMorrow]

Yes you should be able to. I’ve never had an issue moving the amount my employer matches