Re:Most hospitals aren't complying with price transparency rule
by caturopath on Tuesday June 15, 2021 @01:55PM
(#27518983)
If you aren't reimbursing medical expenses, the money is taxed, even when you are 65+. (It functions sort of like a Traditional IRA in that circumstance.)
The real trick is to save medical receipts for years/decades and reimburse only when you actually need the money, paying out of pocket until then.
Re:Most hospitals aren't complying with price transparency rule
by PaulDavisThe1st on Tuesday June 15, 2021 @01:56PM
(#27519004)
What I mean is yes, indeed, it functions like an additional traditional IRA, gains are accumulated tax free, and the balance can be withdrawn in any way you want post-65.
Does that trick actually work?
Re:Most hospitals aren't complying with price transparency rule
by caturopath on Tuesday June 15, 2021 @02:04PM
(#27519150)
> Does that trick actually work?
There is no time-boxing on reimbursement, so it should. HSAs are only about a decade old, so no one has done the extreme versions of it yet, but a decent number of folks are squirreling away receipts and letting the money grow.
Re:Most hospitals aren't complying with price transparency rule
by astura on Tuesday June 15, 2021 @02:23PM
(#27519448)
Why wouldn't it? There's no time limit on using the funds and no time limit on reimbursing yourself for medical expenses.
Kinda like a backdoor Roth, no rules prevent it, so it works.
I have an HSA, but I'm painfully aware of how it's just another boondoggle for the wealthy. I can dump cash into it on top of the limits for my 401k and IRAs, and pull it out tax-free with no limits once I turn 65.
Another good example of how an idea that sounds fairly good on paper turns out to be another benefit for the rich in real life.