The Shocking Truth About An HSA (Health Savings Account)

[@JarradMorrow]

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[@juliandaza82]

What is the system you use to keep track of the receipts digitally? Appreciate any info. Thx

[@willmallory9085]

I'm told military people (Tricare) can't have these. Any truth to this?

[@shibajichatterjee3190]

Can you suggest where to save medical receipts for free ..so that I can claim those later from HSA ?

[@nameloC]

New Jersey has apparently invaded and conquered the state of South Carolina.

[@JarradMorrow]

😂 11:14

[@o0usf0o]

I didn’t want to be that guy but glad someone said it lol

[@KCInferno]

I wanted to be that guy, but you beat me to it. 😢

[@jonc1375]

I think he meant New, New Jersey

[@Sufi_Annoor]

lol I was just gonna say the same thing

[@stt5v2002]

I have been using an HSA in this fashion for almost 20 years. It really does work. My HSA account has nearly $250k in it. One additional tip. There are many allowable health care expenses that you might not think about but need to track. Things like band aids, over the counter Tylenol, a thermometer, home Covid tests, neosporiin ointment for scrapes, hand sanitizer, etc are all allowed expenses. But you need receipts / documentation. There are also a few other clever maneuvers you can use if you plan well. For example, say that your doctor were to recommend that you work out at the gym 4 times per week to treat your weight, diabetes, blood pressure, depression, or back pain. You could then get your gym membership reimbursed from your HSA funds. Documentation required, but legal.

[@JarradMorrow]

Great points. Thanks for sharing your personal experience

[@MisterKelisi]

Why would I have to get my expense reimbursed if Jarrad says that it’s better to pay the expense out of pocket instead of through the HSA account? Confusing .. @jarradmorrow

[@ronlewis8398]

Thanks for the info. As a point of clarification, is the main strategy to fund the HSA, let it multiply, pay out of pocket for medical expenses and then use receipts like 20-30 yrs later to be reimbursed for all the out of pocket costs once the principal amount has multiplied without being used? Is that part of the strategy being proposed? Or just keep receipts forever when you spend from the hsa account incase you're audited 30 yrs late to see if you added a candy bar?

[@thebestSteven]

@@MisterKelisi Because you can remove the money at any time. So you can keep the receipts for years and pay after you've gotten the gains from doing what this video talks about.

[@wrenchguy2937]

smart life hack right here

[@JeffTeeples]

I love the power of HSAs. Always trying to explain it's value to people. Well done sir!

[@JarradMorrow]

Much appreciated!

[@michaelb.8953]

I'm with you 100% on your comment. A couple of years ago a coworker was complaining to me that our employer based premiums coming out of his check biweekly check on a monthly basis was more than his monthly rent payment. I explained the process of an HDHP coupled with an HSA and placing the cost savings of his lower premium HDHP into his HSA. He thought it was a bad idea and kept telling me that he doesn't want to get any medical bills, but in the meantime he felt better about spending $600 a month month in and month out regardless if he used $600 in medical services that month or not, essentially blowing hundreds of dollars a month for no reason. I went through the whole process again with him again trying to get him to understand, but he wanted no part of it. To be fair though this guy was completely horrible at handling his money as he was always in stupid car debt with having to buy at car lots that only sell cars with those ignition shutoff systems in case you're a day late with the car payment or insurance payment and was always having his cell phone shutoff on him for non payment. Needless to say I couldn't get through to him and he switched jobs some time later and lost touch with him.

[@randy1234344]

Thanks! This was a very thorough, well-thought out educational resource! Many thanks Jarrad!!!

[@JarradMorrow]

Wow, thank you!!

[@mckinleyp13]

Opened up an HSA last year and I’m kicking myself for not having had started earlier. If you’re young, don’t have dependents, and can cover the minimum deductible, OPEN up an HSA. It’s another great vehicle for building wealth.

[@gayvi8or]

I opened mine before I turned 31. Wish I had done it sooner, but at least I’ll have my 401k and my HSA retirement in 35+ years!

[@fredster021]

Any recommended HSA?

[@NateSmith]

Wow this showed up at the perfect time as my company is in the open enrollment period. I’m in my early 20s, and you may have just gained me thousands of dollars for the future with this video.

[@JarradMorrow]

That is awesome!

[@cristinabolanos47]

That’s great!!! I wish I knew on my 20s. Been maximizing it for almost 7years

[@yesiperez3682]

same!!! his explanation was super easy to understand

[@mallardcutter7209]

I’ve had an HSA since they came out. I have not spent a dime of it. Restrictions prohibited me from investing for several years but since that was lifted I now have $125,000 in it and I continue to max out my contributions for just a single and no dependents.

[@zackgallinger-long4459]

Thanks!

[@JarradMorrow]

Wow, thank you. That's very generous of you 👍

[@toddhatch6826]

Fantastic info!! Totally agree! Great additional way to save for retirement!! As a side note my current employer doesn't allow HSA funds to be invested, so I roll them over to my Fidelity HSA every 4 to 5 months or so to invest them and watch them grow!!!

[@JarradMorrow]

Smart move! Thanks for sharing how you're working around that issue! Which HSA provider isn't allowing you to invest your funds?

[@toddhatch6826]

@@JarradMorrow it's my employer, a community bank.

[@JarradMorrow]

Ah, okay that makes sense.

[@toddhatch6826]

@@JarradMorrow the funds just sit in a checking account earning almost nothing.

[@NaturalDrAmanda]

😮 Can you possibly automate the transfers monthly? My guess is that you’d ultimately earn more interest by making more contributions like people who invest twice a month into the market. Consistency and frequency make money grow faster it seems.

[@BadPhD777]

I'm one of the few (like you) letting my HSA pile up until I retire. It's all invested at Fidelity!!

[@j-s2526]

I just started mine with them. Do I have to pick where I want to place the money to get a good return on it or does it do that itself like a saving account? New to all this and wish I would have started when I was 21 ..dumbass me

[@hastycontemplation]

​@@j-s2526Yes you have to pick, the nice thing about Fidelity is you have many more investments to choose from.

[@randomguy-yv2ec]

​@@j-s2526 I have the same issue

[@WeBeatMedicare6969]

@@j-s2526you have to pick a fund, ETF, etc

[@rv-ollie]

Okay, youre redeemed with the NJ map. Good B-roll half way thru the video. Lol. Love your content. Keep it up.

[@JarradMorrow]

Had to make sure you were paying attention 😂

[@vax31j]

Thank you! Your video is a must for anyone financially minded.

[@amcreaken]

Intrigued by HSA, but... that was definitely not New Jersey on a map.

[@JarradMorrow]

It identifies as NJ

[@Shake___and___Jake]

😂😂😂​@@JarradMorrow

[@alleneverhart4141]

FYI: For peeps on medicare - you can claim Part B payments and IRMA against your HSA account. In 2023 PART B is $165 per month.

[@JarradMorrow]

Great tip. Thanks for sharing!

[@Thatsotaguy]

Just in time for open enrollment! Thanks for everything you do Jared!

[@JarradMorrow]

My pleasure!

[@randolphh8005]

There are additional “medical” expenses which are HSA eligible BUT not reimbursed by insurance. These include many Over The Counter products, and some insurance premiums like Medicare part B and D, and long term care insurance. The IRS publishes a long list of eligible expenses. It is worth reading so you save all the receipts. Also as stated, for the healthy the HDHP is usually cheaper than the regular health plan so you are also saving money on premiums, including if you have to make a partial premium payment as many employers require. We are entering retirement with over $130k in HSA money!

[@R5123]

Love it, nice video! I find it impressive that even though there are experts / professionals at companies that work in this area, many cant explain it half as well as you!

[@JarradMorrow]

Appreciate it!

[@JohnJohn-wr1jo]

Your overestimating your company representatives knowledge on HSAs. In my experience since the HSA was legislated in 2003 most company representatives/HR people know little more than the accounts have to be spent on medical. Before retirement I would sit in on an annual employee benefits meeting and our Corporate Benefits specialist admitted that less than 10% of employees utilized the accounts and that she hadn't as of yet either. UFB.

[@jordanvanderheyden6346]

This video inspired me to max out my HSA and I can not wait to see it grow with my investments! BOOM!

[@quicknickucf]

Thanks for the info. I didn't know I could keep my receipts for future withdraws with no expiration. Great video

[@The_Draque]

Ive been trying to do this back and forth for the last 6 years. Always end up spending the HSA funds because medical bills are insane on a high deductible plan..like $600-$900 for routine bloodwork insane

[@Kibatsume1]

I would recommend finding another doctor. I have found a lot of doctors offices up charge when you have insurance. Fine example my father's boss has good insurance. A medical procedure his wife went through the doctors office wanted $2,000 for his co pay He lied told the doctor's office he didn't have insurance anymore and was paying cash total cost as a cash payer??? $800!!!!! People wonder why insurance is so expensive because hospitals and doctors offices get away with this bs!

[@camasu100]

Don't ever have blood tests done in office or at a hospital, use Quest or LabCorp or another independent lab. You have to be a savvy consumer when you have an HSA.

[@Firewireman1]

If it is being done as part of your annual physical, it should be covered. It's different than if you walk in the door with an issue and say, "diagnose me." I've gone around and around with provider and insurance, but that is how many insurance plans are worded, including mine. Have almost always been able to get it taken care of as part of my annual physical since it should be classified as "preventive."

[@raiden031]

​@@Kibatsume1i would say it's almost always more expensive if you don't have insurance or are out of network. It's because they charge retail prices whereas insurance negotiates a discount

[@TheSolver-PR]

You're the first one speaking in reality. How do numbers work for you? Let's say if you're regular medical insurance was $300 monthly... how much do you pay for your hight deductible health insurance? And... what is the difference in copay for each one? If a cancer diagnosis occur my plan would cover 80%. How was that situation presented in yours.

[@Sylvan_dB]

True that. I first became eligible for an HSA in 2015. Wife and kids on my high deductible plan. I spent nearly all my HSA contribution in 2015 and most of contribution in 2016 then I figured out the "health retirement" approach. So much better! But I need to get better about tracking medical expenses for later.

[@abern30]

Great video. Was the “New Jersey” part a joke where it was actually South Carolina on the map? I took it as a joke. That subtle humor is the best.

[@JarradMorrow]

Thanks! Wait, isn't NJ right below NC?

[@abern30]

Your videos are tremendously helpful! Thank you for taking the deep dives into these important topics I was never taught about in school@@JarradMorrow

[@Erock181]

Great video! I’ve been working in the employee benefits space, with a focus on HSAs, for 8+ years. This is the type of content needed in open enrollment meetings!!! I’ve had multiple financial advisors tell me an HSA is the most powerful retirement vehicle out there. Take advantage of the tax benefits…especially the tax free growth!

[@a32tl]

I love my HSA! I’ve had mine about 5 or 6 years now and have approximately $18k in the account. I’ve been maxing it for the last 2 years and invest it in a growth fund and an S&P 500 index fund. I pay for medical expenses out of pocket and save my receipts. It’s one of my favorite accounts. Amazingly, I’ve not been able to convince others of how awesome an HSA actually is. All my coworkers spend their HSA money and don’t invest it.

[@jnordman86]

Have you seen your investment grow?

[@JarradMorrow]

Thanks for sharing your personal experience with an HSA 👍🏻

[@a32tl]

@@jnordman86 I have seen it up and down. But just like any other investing account, I keep buying and dollar cost averaging. Over time, I fully believe it will pay off.

[@biglemon7764]

Funny thing is, even if it doesn’t grow one dollar, you still have MONEY there, you’ve saved in taxes and compare that to your coworkers who have NOTHING.

[@a32tl]

@@biglemon7764 Absolutely correct!

[@_Renee2]

I opened one last year and need to learn more. FSA had too many limitations and the “use or you lose” was not worth it.

[@Distortic]

My issue isnt the HSA, its the price fixing involved in my high deductible plan. Its cheaper to not use my high deductible plan. Multiple doctors have quoted me almost double to use my insurance vs paying cash. I still used the HSA money, but when healthcare is made more expensive it eliminates the savings. Id rather pay taxes than pay inflated medical prices that only benefit big insurance companies.

[@pwade4061]

That's a fair point

[@cannonball134]

Same. I had this happen as recently as this morning

[@raiden031]

I've never heard of cash being cheaper than using insurance

[@antoniotula262]

​@raiden031 I've been looking into this since late last year since I went to check-in for a regular Doctor appointment and the site asked if I wanted to use my insurance or pay cash...hmmm. Well I started googling a bunch of info. The bombshell for me was when my own Doctor told me doesn't have insurance!!!... he just pays cash for blood screening panel 3 times a year for around $150 each time. Here I am paying $530/month for the past 4yrs for insurance and all I've done was get a yearly blood screening!!! Google any procedure for your zip code and you'll see (colonoscopy, mammogram etc).

[@CharlieVN]

Bro, pay cash, get receipt, boom hsa eligible, not a real problem

[@justinbrtek4801]

Optum Bank HSA (United Healthcare subsidiary) has a nominal $2 monthly fee, a cash holding requirement, and a percentage based investment fee (separate from fund expense ratios). I would not be with them if it wasn't through my employer.

[@JarradMorrow]

This is helpful. Thanks for sharing with us!

[@wanderlust7020]

You can have more than one HSA account. My employer also uses Optum, but I’d also opened a Fidelity HSA last year and have Fidelity initiate a transfer from Optum to Fidelity when I have excess in the Optum account. I just need to keep at least $500 in Optum to avoid any fees and don’t bother with the Optum Brokerage portion anymore. (Fidelity pulls it from Optum for free, which is better than the $25 transfer fee to have Optum push it to Fidelity !!!)

[@bgoode652]

@@wanderlust7020 This is what I do as well. I have to keep the Optum account open to get the payroll deduction and company match benefits but all but about $1,000 of my HSA is housed with Fidelity.

[@robertwheat1864]

@@wanderlust7020 This is the way, use your work account and then transfer to a better provider. But keep checking fees on both sides.

[@MichelMawon4982]

Yeah, I have them too and I also hate that. If I’m participating however, the fee is waived.

[@HRCfan17]

Glad I watched this video. My employer just started offering an HSA. Just enrolled and not sure how it all worked.

[@JMo268]

I'm convinced. Thanks.

[@JarradMorrow]

👍🏻

[@CodyBMcGuire]

My company seeds 500 into the HSA at the beginning of the year. On my 3rd year of maxing. I set up automatic deposits that come out before taxes, so I don't even notice. Pay yourself first.

[@BuildItFixItDIY]

0:45 I didn’t realize there had been a sudden and major tectonic event that caused New Jersey to migrate southward.

[@JarradMorrow]

😂😂

[@laurabartel7240]

This video was a lightbulb moment for me. Thank you thank you for this well explained video. Seriously!

[@ROLOGamingOfficial]

New Jersey, proceeds to highlight South Carolina in the map.

[@Dad-in-WA]

Huge fan of HSA. Triple tax advantages. I’m doing exactly what you stated in this video. Contribute yearly, invest, and hold long term. Thx for sharing

[@ph5915]

I've had my Fidelity HSA via my former employer and have everything invested in the FAIX ( The Fidelity S&P500 index fund) for the past 8 years or so. I was living off of savings until this year from 2019 (I turned 59.5 earlier) so I didn't invest for 4 yrs but now that I'm pulling from my IRA I am maxing out the HSA again! I have 5 yrs to go before Medicare age, and researched it extensively. For me, the Medigap/Supplement Plan that makes sense is the Plan G-HD (high deductible) which the MOOP is less than half of my retiree medical plan's! I am hoping I could still contribute to my HSA at that point, when in Medicare, as long as I would be in the Plan G-HD? That should qualify in my opinion, I think there is something in Congress to that effect (not passed yet of of course).

[@JZeez96]

Thank you so much for this video Jarrad, this was extremely helpful!

[@Silverpup67]

0:46 why is NJ in SC?? 😳🤨❓

[@JarradMorrow]

Because NJ decided it was jealous of SC

[@Silverpup67]

@@JarradMorrow that tracks

[@jhl33t]

Thank you Jarrad for this enlightening video! Life changing information here everybody! Watch the entire video. 👍👍🙏🙏

[@TheMatadore]

The best HSA contribution is a total payroll deduction. Pay zero taxes of any kind.

[@Czarchasm121]

first infographic when you mentioned NJ and CA as exceptions actually highlighted south carolina

[@frankymoore3344]

Great info @Jarrad. I wish you would mention another fantastic aspect of HSA - some of the HDHP plans offer a broader in-network coverage, which allows patients to “shop around” before choosing a provider, procedure, or medications. For instance, a pelvic CT scan with contrast at a major California hospital could cost you $1600 or more. However, if you explore options like community hospitals or smaller facilities that specialize in radiology scanning, you can instantly lower the cost to the $450-$700 range. This might involve working with your primary physician’s office to fax an order to another facility or provider, but it’s well worth the savings (please note: this isn’t advisable in critical conditions where time is of the essence). The same principle applies to various types of lab work as well. Some insurances (if not all) provides the option to Quote procedure by its #/name and list available in-network facilities with approx price. Hope it helps. Stay healthy comrads!

[@StormWarningMom]

This is called running a test claim. Be sure you have both diagnosis and procedure codes in hand when you call.

[@nessapalmer5316]

Just remember these accounts are subject to unclaimed property rules so be sure to complete a transaction, call or login to your account to keep your account active. There can be inactive fees too so find out these time-frame to avoid losing your money.

[@chantzmoore781]

Can you explain more

[@nessapalmer5316]

@chantzmoore781 sure depending on your State laws an account can become dormant if you do not make positive contact, meaning logging into your account, calling or completing a transaction. After usually 3 years of no activity the institution has to send your funds to the state you live in as unclaimed property. You can then get it back from state but it would no longer be in your account.

[@oldporkchops]

​@@nessapalmer5316Do annual/monthly contributions count as activity?

[@chrisb1809]

I like how New Jersey relocated south and doubled in size.

[@JarradMorrow]

😂 11:14

[@tannerhughes6274]

I just started working as a new aircraft mechanic with a large airline company and they offer an HSA program I opted into. I’m about to put in 6,000 annually, and I think it was showing the company will put in &1,500 a month (I might be wrong but that’s how I ready/understood it). I try talking to other mechanic guys I’m starting with or other guys who are here but no one seems to get what it is and shy away from it, thinking it’s a scam or seem afraid of it.

[@pnowikow]

I love my HSA. It's life changing

[@JohnJohn-wr1jo]

I started contributing the family max to my hsa when they were first available and invested 100% allowable from day 1. Had already maxed out my Roth and regular 401k. Retired in Jan 2020 with 134K in the hsa and it's well over 200k to date. I look at all of my medical expenses annually and can submit for reimbursement but haven't so far. I never intended or expected to grow this account as such but decided several years ago to use this in place of a long term care policy that everyone was trying to sell me. I do the math on it once a year and this is by far the best utilization for this account as I get older for too many reasons to list. My CPA wasn't on board initially but now agrees that this plan is aging quite well and makes more sense every year vs the LTC policy costs and reductions in benefits. I look at my HSA as an insurance account primarily for all things medical including long or short term care.

[@superman1251]

Great video!

[@JarradMorrow]

Thanks!

[@sethlikesgreen]

0:46 I believe you meant to highlight NJ, but it's actually highlighting SC.

[@patrickleitgeb]

My employer offers a traditional Blue Shield HMO where the monthly premium is about $76 vs a newly offered HDHC for $186. They also will contribute $1750 per year for that. I’m on the fence about paying the higher premium of the HDHC. I’m in my early 50’s. I visit the doctor once or twice a year for checkups and my prescriptions are very inexpensive. I’m not sure if it makes sense for me to switch to the HDHC only because this is very new to me.

[@lmelior]

Great video! Don't sleep on that secret FOURTH tax advantage described around 16:20... if your HSA contributions go through payroll, it ALSO reduces your FICA withholding, meaning you save 7.65% in taxes on your contributions. That's a savings of over $50/month for families who max it out. Perhaps that's not exactly life-changing but it's nothing to sneeze at either! My HSA is at Fidelity and I love it. My company used to have our 401k there as well, but although that has been moved, fortunately the HSA is still there. The only other warning I'd have is that, while HSAs are incredibly awesome, if you're likely to hit your out-of-pocket maximum in the next year (e.g. if you're having a baby), it might make more sense to take the non-HSA eligible option during open enrollment. HDHPs can have sky high OOP maximums (e.g. mine is $10k), so take into account how much of a hardship it would be to pay that much out of pocket. Definitely highlights the importance of having an emergency fund!

[@JarradMorrow]

Great points. Thanks for sharing!

[@pythonxz]

I'm glad I didn't come here for geography.

[@JarradMorrow]

Sir. I have a masters degree in geography from Harvard.

[@juliewillson3378]

@@JarradMorrowyou might want to look at your map again and find New Jersey.

[@intrepid_rain]

i’M gLaD i DiDn’T CoMe HeRe FoR GeOgRaPHy derp

[@intrepid_rain]

@@juliewillson3378 that’s great and all Julie but it was a fucking joke. Are you seriously this dense? Wow…how embarrassing for you.

[@mariesmith8064]

😂😂😂

[@AZsmoothrider]

This is a great gig for a young healthy person- even if you only did it for 15 or 20 years. For me I'm content maxing my Roth 403b and IRA

[@adjhunts811]

Nice. I have one, but didn't think about saving receipts for 30 years and then submitting for reimbursement.

[@heidikamrath1951]

Same

[@indishanoh8240]

The company normally has an excel form for you to track your expenses , and you can upload your receipt.

[@DaveDivesIn]

Excellent advise

[@brandonwilson5727]

I opened an HSA at 21. I’m 23 now. My wife and I just had a baby and I changed my insurance to a family plan. I’m hesitant maxing it out at the $8,300 because she won’t be working and money will be a little tighter. Would you recommend lowering my 401K contributions to just the match (4%) so I can max out the HSA? Thank you.

[@Thatsotaguy]

You’ll be safe doing so as long as you’re taking the matching. But once things normalize, put it back up

[@wanderlust7020]

IMHO (just a random person), order of precedence is to: 1 - meet the 401k match 2 - max HSA 3 - max IRA (traditional or ROTH based on your situation/outlook) 4 - max 401k

[@randolphh8005]

You have to have a HDHP to contribute to an HSA in that year. Most would not recommend a HDHP in the year you have a baby since you will max out the deductible which is after tax money. For people who have higher medical bills or poor health a better health plan that pays more is a better idea in the relevant years(like having a baby). In other words, if I have to pay out of pocket for $7000 of medical bills to contribute $7000 it’s not such a good deal.

[@thunderb00m]

​@@randolphh8005the deed is done he already had the baby, unless there are health issues with the baby or mother there is no point switching now.

[@brandonwilson5727]

@@randolphh8005 We already had the baby on my wife’s insurance. She is now not working so I have them on a family plan through my works insurance.

[@DavidVillaTorre]

Im not sure. I love the idea of opening an hsa but as someone who goes to the doctor semi regularly the idea of switching out of my ppo plan makes me cringe

[@themeowcasa]

Just crossed 10k mark 🎉 29 years old!

[@ericgold3840]

Outstanding. I would add two points I don't remember being mentioned: 1. HSA can pay for the Medicare Part A/D premiums, IRMAA, and Part B/Medigap deductibles. Think: Medicare funded for life if done right 2. The inheritance rules for an HSA given to anybody other than a spouse are lousy. Some tax planning may be needed

[@johnnym2814]

RMD age is 73 now and going up to 75 in a few years but loved the video great content

[@JarradMorrow]

Thanks for correcting me 👍🏻

[@hipernet]

2:50 , you says catch up and it shows a quick picture of Ketchup lol

[@633ohioc]

Wow....thanks for the video...i knew nothing about hsa.

[@blsr3771]

FYI: You must stop contributing to your HSA when you enroll in Medicare. Once you file for social security you are automatically enrolled in Medicare part A and it may be retroactive for 6 months. Your HSA is there for paying medical bills but you can’t contribute more. Thanks Wayne. You are only enrolled in Medicare part A if you are past Medicare age. I waited till after FRA to enroll in social security and I am on my employers insurance (credible & over 20 employees) instead of Medicare. SSA automatically enrolled me in PartA 6 months before the begin of my social security. Luckily I had already read about this and stopped my HSA early.

[@waynemiller6070]

At 63, I've been collecting Social Security for a year. But I also have a high deductible insurance plan with an HSA that I continue to contribute to. I won't enroll in Medicare until I'm 65. But that's what I plan to stop contributing to the HSA.

[@FreakyLynx]

Currently 46 and only just started to contribute to an HSA this year, hopefully didn’t lose too much time by not getting one sooner.

[@ron9665]

0:46 - You say California and New Jersey, but I believe you have South Carolina and California marked on the map. Map did catch the correct state at 11:15

[@ProvokedTomcat]

At 0:46 he says New Jersey while highlighting South Carolina on the map

[@JarradMorrow]

How about at 11:14?

[@firstnamelastname3389]

To be fair, this is immediately preceded by "I'll have warnings all throughout this video"...

[@michaelschlager2808]

I think of mine as a savings account. If things get skinny, I can pull out some medical expenses I paid previously out of pocket, and use the money pulled out to make ends meet. I haven't had to do this yet, and hopefully this can grow for 30+ years. But if not, it's there when I need it.

[@rdarrett3635]

Good stuff.

[@tomlull5204]

@Jared at 17:53 you mention the digital system you use for tracking receipts. Please share.

[@JarradMorrow]

There’s a link in the description of the video to get it

[@Taigin]

0:46 Why when you say "New Jersey" is South Carolina highlighted?

[@davida6299]

That's South Carolina, not New Jersey. Attention to detail matters even more in money than it does in geography.

[@JarradMorrow]

Pretty sure NJ moved there sometime back in 2021 when everyone else was. I’ll have to double check

[@joshsmith7692]

I have an HSA and its getting moved to Fidelity starting next year. My plan was to feed it while i am "young" so when i start going to the doctor i have the money for expenses. But im not going to double pay for medical expenses just to have more money later. So my kids braces and oral surgery has been paid for by my HSA and im fine with it.

[@JarradMorrow]

Sounds like a great idea to me. Keep up the good work 👍🏻

[@alstonjames2726]

you highlighted south carolina instead of NJ @00:46

[@yourcalpal]

This makes sense if you dont have issues. Even issues like acne on HDHP mean even prescriptions are not even covered so to get that topical ointment, it cost 300$ because insurance will not cover until i meet my 5k deductible. This is on top of the doctor visit to get the prescription which was 250$. This makes some monthly check ups or procedures not possible until i change my next election vs plans with a small copay of like 20$ for a doc visit.

[@3uLLd0gs]

I spent about $1000 in physical therapy this year but didn’t think to keep the receipt. So I should keep the receipt for forever and that expenses refunded when I’m ready to pull the money out of my HSA. 😮

[@Joenzinator]

Great info Jarrad. I will say, if you start maxing out your HSA early enough, I think it's fine to use some of it on current medical expenses. I'm 37 with $50k already in my HSA, so without any more contributions, it should be ~$350,000 when I retire. I'm still maxing it out, but I've started using ~$3000/yr on my family's current medical bills. That should yield around $520k by age 55, if I choose to retire then. At that point I could probably count on a sub 4% withdrawal rate and not even touch the principle. I believe HSAs are taxed upon death, so that's not really the goal, but it might be what happens unless we incur a lot of medical expenses.

[@JT_ytspawn]

Would you say if you have $350k in HSA at 65, you would withdraw from it, for expenses rather than a regular 401k ? Assuming you retire at 65.

[@notNaB2024]

I would appreciate your thoughts on HSA in California. Worth it?

[@JarradMorrow]

It could still be beneficial with only the federal tax benefit. Just make sure you run the numbers to account for your situation.

[@kilgary]

I’ve been contributing pre-tax to my HSA in CA for 2 years. I have a High Deductible plan with Anthem. They make me keep about $1k in cash but allow me to invest in just about anything. I’m putting it all in BRK.B. My employer is matching $2k for the HSA account next year to incentivize more employees to choose the plan over the more pricey PPO plan they offer.

[@super8mate]

If your employer does not offer HDHP check if your state insurance exchange does and do the math.

[@curtiswfranks]

It should be noted that not 𝘢𝘭𝘭 of the medical expenses have to be paid out of pocket up front, usually. That is the worst-case scenario. But an HDHP 𝘪𝘴 health insurance, even if it is not the best health insurance which exists, so it should cover some positive amount of one's medical expenses.

[@hassansiddiqui8231]

0:46 you mention New Jersey but looks like South Carolina is highlighted on the map. Is New Jersey the state you meant to say?

[@JarradMorrow]

It's supposed to be SC

[@zgdafzgdaf4264]

Great advice. It took me two years to figure out I should be saving this money instead of spending it on current health expenses.

[@savanah1407]

Same

[@cuzzourt35]

Im always broke but when i had an HSA I still maxed it everyyear and withdrew the money becayse we always max our deductible. Essentially allowed us to deduct our medical expenses since our AGI is still to high to get any benefit from itemizing.

[@RealSamHailu]

well made video

[@rodrigok1220]

If you retire early, can you use your HSA to purchase health insurance?

[@le9051]

Woah. Lol I am soooo happy to see your comment. I had not thought about this, thank you!!!

[@rodrigok1220]

@@le9051 I’m pretty sure you can, I’m just 9 years out from retiring, so hadn’t looked it up.

[@rodrigok1220]

Found this… they should open it up and allow you to use in this manner. Either way, it helps carrying a good HSA balance into retirement. According to the provided search results, health insurance premiums do not generally qualify as a qualified medical expense and therefore cannot be paid with HSA funds. However, there are some exceptions. For individuals under 65, HSA funds can be used to pay for the following premiums: Long-term care insurance premiums Medicare premiums (if you are not yet eligible for Medicare) COBRA premiums (if you are unemployed) For individuals 65 and older, HSA funds can be used to pay for the following premiums: Medicare premiums Long-term care insurance premiums Medicare Part B premiums (if you are not yet eligible for Medicare)

[@mopeygoff]

Says "New Jersey", while South Carolina is in red. You got California right, though.

[@JarradMorrow]

11:14

[@Panzer2020]

so if you save QUALIFIED receipts for x amount of years, then reimburse by withdrawal from HSA... it'll be tax free... save receipts to a dedicated email and withdrawal tax free... correct me if I'm wrong, I'm a puppy with fat paws. 🐾🐶

[@daveassanowicz186]

@0:45 That's South Carolina

[@JarradMorrow]

You sure? Double check the map

[@michaelk969]

One technical point people should be aware of. Every person that starts collecting Social Security is automatically signed up for Medicare part A. The two programs are linked. Collecting Social Security automatically disqualifies a person from contributing to an HSA account because they will be on Medicare. This is regardless of whether you are enrolled in a HDHP.

[@altaccount8749]

I had an HSA and was using it as an investment vehicle but my new job pays all premiums on a non HDHP. I just put more money in IRA now.

[@shaunab2154]

I'm looking at an HSA to help with health insurance after my early retirement up until I reach the age of 65. It has the added benefit of reducing my AGI so I would qualify for a greater subsidy through the ACA.

[@scoobtoober2975]

Can you tally up a bunch of previous bills and make an itemized deduction all at once. We have some stacks of bills that were all out of pocket. We have had a high deductible plan during all of these bills.

[@JarradMorrow]

You can batch multiple bills to withdraw one lump sum that's equal to the individual bills. As long as you incurred the bills after the date you opened an HSA.

[@josephabramson9395]

You can open a limited FSA for vision or dental, and then once you hit your hdhp deductible you can then use your FSA for medical. But this depends on company

[@johnjohn40100]

Holy cow, i thought think hsa reimbursement that way like an expense rather than an investment. Thanks!

[@bswins9648]

0:45 New Jersey? Perhaps you meant "South" Jersey.

[@JarradMorrow]

11:14

[@j-s2526]

I just started investing in a fidelity hsa. I’m trying to learn all of this, but I’m getting confused on certain things. Do u offer a one on one session or anything or is this something my accountant can assist me with?

[@cameronthorby5799]

On the other hand out of pocket cost is post taxed money so your medical expenses are kind of +24% higher out of pocket than they are via HSA no?

[@MuscleMan500]

Correct me if I'm wrong but, you can use an FSA (non taxed) for qualifying medical expenses instead of paying out of pocket cash (taxed) and still get the benefit of reimbursing yourself from your HSA (non taxed)

[@KishanPatel-cn5ls]

Hi Jarrad! I really appreciate all your videos. I had a quick question. My company has an ESOP plan so I’m getting this in my portfolio. Is it worth it to keep those shares or trade them for an index fund? Thanks!

[@billyoung8118]

I've had T1 diabetes since 1985. I am one of those people where an HSA does not make sense. I think it is cute how some people don't use their full annual contributions in an HSA. I'm like "ummm.....yeah....one 3-month supply of insulin nearly wipes that out." Then I have test strips, pump supplies, continuous glucose sensors, regular bloodwork, etc. The fun never ends. No thanks.

[@JarradMorrow]

@@badinstinctsKZbin-xb3oj Why are you shitting on this guy for having that type of diabetes? He said he has T1 diabetes, not T2. T2 is usually caused by unhealthy lifestyle choices and T1 is not.

[@befriendly]

@@badinstinctsKZbin-xb3ojReally man?! You should use your HSA to improve your mental health because you clearly have issues.

[@billyoung8118]

@@badinstinctsKZbin-xb3oj T1 is childhood diabetes. Your immune system backfires and attacks your pancreas, killing off your insulin producing cells contained in your pancreas. It is 100% not a lifestyle issue. Some kids develop it in infancy. Do better.

[@cryingforthemoon]

@@badinstinctsKZbin-xb3ojThey have type 1 diabetes. Autoimmune.

[@mundie33]

you have one of the few use cases where it doesn't make sense. chronic illness is the only real reason not to contribute (the other being cannot afford it). many employers though are pricing health plans to incentivize selecting the HSA plan so it's often a wash