HSA..Health Saving Accounts???

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How would I set up an HSA through my payroll so I could have a certin amount put back each month? I know my payroll offers HSA as does my bank but I want to try to get the most pre-tax money that I can??

 

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Talk with your hr. They should be able to guide you. I use an FSU through my work for all my diapers. It works well.

 

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With my old employer, the HSA was a part of the Medical Insurance. It went into our HSA accounts tax-free, which is a heck of a deal & savings. The only problem we had was if you didn't spend it all that year, you lost what was left. We had to calculate/estimate our costs in advance. If you have long-term, yearly costs, it is easier. With dentists, it was easier if you had, say, kids about to go into or in orthodontry to straighten out teeth. You dentist could give you pretty acurent estimates.
There were so many complaints, the policy got changed so you didn't lose the money, but that was years ago, so who know, now. Tax policy keeps changing, and never for the better for the non-rich. Since HSAs are still around, that's hopeful. Check whoever handles Health Insurance at you employer, which may or may not be HR.

 

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There are two different types of accounts. An HSA (Health Savings Account) is something you can get if you have a high-deductible health plan (HDHP). This rolls over your money from year to year, so you don't lose it, and is generally used to pay for the deductible of the best HDHP but can be used for many other medical/dental expenses as well. It must be offered through your employer, or whatever group offers your insurance if it's not an employer.

The other type of account is an FSA (Flexible Spending Account). This is also offered through your employer, but does not require that you be in a HDHP. Money in this account must be spent in the same year it's contributed, so you need to budget carefully. What doesn't get spent is lost at the end of the year.

If you have a choice, get the HSA. But if an FSA is all you qualify for, it can still be a good account if you know how much your medical expenses will be.

When my kids were small, I used an FSA to pay for daycare expenses, since it let me use the money tax-free. Now I've got an HSA, which I use to pay the $6800 out of pocket cap on my insurance, still with pre-tax money.

 

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Great explanations, peeps, thanks!

 

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Itapilot. Many thanks. Obviously, your info is maybe 1 and possible 2 decades newer than mine, and was really well stated. Bet there are a lot of us who need that info. Again: Thanks!

 

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So my deductible is $1,500 my copay for ER visits is $400 and $30 to Se my GP. The ER copay covers everything done no matter what as long as I went in through the ER. But both are out of my budget range. I have own about $3,100 to the hospital right now. I spend a $1,500-$2,000 year on diapers and other supplies, and that was before all this current issues where I am wearing 24/7. So I thing that doing something would be a huge benefit for me.

 

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ThatFLGuy: There have been some changes to the IRS rules on medical deductions, in the last few years. If nothing else, try the IRS website for whatever has taken the place of those old paper pamphlets, and read up on medical deductions. It can take some effort to understand the darned things. Speaking from experience.
One other idea. See if these expenses count against your deductible. See if that changes if your doctor give you a prescription.