Posted: 12/19/2025 11:42:58 AM EDT
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So I was a proponent of keeping the balance growing for triple taxed advantage. I don't have premiums withdrawn via payroll so I don't get the ss/Medicare benefits. I've since learned an HSA can only be used on qualified insurance premiums. Instead of having to hold receipts for a long time, would I be dumb to request reimbursement then roll the cash into Roth? |
Callsign-ChuckYeager
That man is a homo and a liar-TrojanMan
Hell, a Ford just breaks down on you. It doesn't fall apart AND try to kill you at the same time-Bloodsport2885
That man is a homo and a liar-TrojanMan
Hell, a Ford just breaks down on you. It doesn't fall apart AND try to kill you at the same time-Bloodsport2885
| Set up an HSA credit card and only use it on appropriate medical expenses. |
Liberals are a curious mix of communism and fascism, they want to destroy you but want to use your own money to do it.
I'm getting down to the last box, the others have all been destroyed...
I'm getting down to the last box, the others have all been destroyed...
| I like the idea....wonder how that should/would be taxed? Since Roth contributions are after tax dollars, and it sounds like your scenario would be using non-taxed dollars. I'm sure big G has a way to get their pound of flesh. I'm hoping to be wrong, and maybe an expert will chime in! |
"Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other." - John Adams
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I don't believe you can do a direct HSA to ROTH transfer and you'd be on the hook for taxes and possibly penalties. HSA's are completely tax free all the way around so anything removed from it and not medical related would get taxed at the standard rate. And that includes placing the funds in any other retirement type account like a 401k. You'd get hit with a 10 to 20% penalty most likely also. You can put HSA monies into a HSA fund earning money but it still needs to go to medical. It's not like you lose it if you die, monies in a HSA goes where your will specifies after appropriate taxes are paid. |
Liberals are a curious mix of communism and fascism, they want to destroy you but want to use your own money to do it.
I'm getting down to the last box, the others have all been destroyed...
I'm getting down to the last box, the others have all been destroyed...
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You are taking hsa money out for expenses. You are making a Roth contribution. Those are two separate and unrelated transactions. If you’re not currently maxing your Roth then the net effect is simplifying your future finances by eliminating the need to maintain the receipts. If you are maxing your Roth then you are reducing the total amount of tax free savings you have because the tax free hsa cash will preclude that amount of Roth contributions. |
| I'm basically putting 0 in Roth. I just got to thinking this move may be smart because I think I get the same benefits at the end. But don't need to maintain records for years. |
Callsign-ChuckYeager
That man is a homo and a liar-TrojanMan
Hell, a Ford just breaks down on you. It doesn't fall apart AND try to kill you at the same time-Bloodsport2885
That man is a homo and a liar-TrojanMan
Hell, a Ford just breaks down on you. It doesn't fall apart AND try to kill you at the same time-Bloodsport2885
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Originally Posted By Chromekilla: I'm basically putting 0 in Roth. I just got to thinking this move may be smart because I think I get the same benefits at the end. But don't need to maintain records for years. It would be better if you maxed out your Roth and left the hsa money in place. But as long as you’re not reducing your normal Roth contributions then do it and reduce the recordkeeping requirements. |
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I see it as "get both". I max HSA and Roth IRA each year. HSA will be tax free when reimbursing, or when used for qualified medical expenses. At age 65, you can treat it just like a pre-tax IRA/401k, and make taxable withdrawals at any time for any reason. So at its WORST, it is similar to contributing more to a pre-tax 401k plan and does not have RMD's attached to it. But an HSA plan does not enjoy deferred tax benefits when inherited, so you really want them drained to near zero before they are to be inherited by non-spousal beneficiaries. |
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Originally Posted By giantpune: OP lost me at "I've since learned an HSA can only be used on qualified insurance premiums." I think you're trying to do some really convoluted stuff, based on erroneous information. Lets rewind to try to figure out how you arrived at this statement first. In general, HSA cannot be used to pay for insurance premiums, with a few key exceptions: premiums for COBRA coverage, health coverage while receiving unemployment benefits, long-term care insurance premiums (subject to limits), and most Medicare premiums (except Medigap). I want to retire earlier than age 65. It does indeed suck that my marketplace healthcare plan premiums will not be an eligible expense for my HSA. |
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Originally Posted By FALARAK: In general, HSA cannot be used to pay for insurance premiums, with a few key exceptions: premiums for COBRA coverage, health coverage while receiving unemployment benefits, long-term care insurance premiums (subject to limits), and most Medicare premiums (except Medigap). I want to retire earlier than age 65. It does indeed suck that my marketplace healthcare plan premiums will not be an eligible expense for my HSA. Gotcha. I read it as that was literally the only thing that the HSA could be use for - certain insurance premiums. Not that it was the only type of insurance premiums that the HSA can be used for, and OP wants to use the HSA to pay for his insurance. |
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Originally Posted By giantpune: Gotcha. I read it as that was literally the only thing that the HSA could be use for - certain insurance premiums. The company I work for has such a plan, a lot of guys are retired military or in the guard/reserve and pay their tricare premiums with it. It’s works just like a hsa/FSA account - the money comes out of your check pretax and is used to pay your premiums for a non employer sponsored plan. |
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Originally Posted By Morgan321: You are taking hsa money out for expenses. You are making a Roth contribution. Those are two separate and unrelated transactions. +1 If you can afford to make max Roth IRA contributions and leave your HSA funds invested, that's often the best option. If you can't afford to do that, reimbursing yourself for medical expenses with pre-tax HSA dollars and contributing an equivalent amount to your Roth IRA gives you more flexibility than leaving the money in the HSA (but not funding your Roth) and simplifies record keeping. |