Investment

» allancoleman - HSA money

When to use it :

http://www.diehards.org/forum/viewtopic....

p.s. , my $6,700 2008 HSA deposit check cleared my bank yesterday so it should be reflected in my January statement giving me over $20k there now . As soon as I get more 1099 data input in my TurboTax , I'll give more information on what effect my 2007 HSA deposit had on my 2007 income tax return .

-- posted by allancoleman

» allancoleman - Individual State Tax Treatment of HSAs

I found another source of individual state tax treatment of the federal HSA accounts :

http://www.aapsonline.org/msas/hsas.pdf

Not all states give HSA accounts the same tax favored treatment that the federal government gives on our federal income tax returns . This is gradually changing over time as HSAs are being more liberalized by the federal government as Congress uses them more and more to deal with national health care issues . So it pays to check back frequently to see if your state has changed their tax code to also offer the federal benefits too .

I love , , my HSA account and will be posting in actual numbers the tax benefit I received on my 2007 income tax return as soon as I can get my 1099's input into my TurboTax and we get the federal regulation tax code update later this month . Just like the AMT patch tax software update , HSAs are also waiting for their IRS tax code patch update too .

-- posted by allancoleman

» allancoleman - HSA tax software update

I just downloaded last nite my expected HSA form update in my TurboTax . Also here is a Bogleheads link :

http://www.diehards.org/forum/viewtopic....

to a HSA question . I was having difficulty with the link posted here , but this discussion is on the Bogleheads site regarding HSAs for those interested .

As soon as I get more 1099's that I can input into my TurboTax software , I can post here the actual figures for the tax benefits of my deduction for HSA deposit for tax year 2007 .

-- posted by allancoleman

» allancoleman - Estimated HSA deposit tax benefit

I'm far enough along in my TurboTax calculation for last year's 2007 tax return to give an estimate of my tax benefit on maximum HSA $6,450 deposit last year : That $6,450 deposit saved me $1,616 in my taxes owed last year . Or in other words , that $6,450 deposit into my taxfree HSA cost me $4,834 actual real dollars . Your tax exposure and benefit could be different depending on your individual tax return .

-- posted by allancoleman

» allancoleman - Form 5498 - SA

Received in my snail mail today my " Tax Year 2007 Form 5498 - SA HSA , Archer MSA , or Medicare Advantage MSA Information (

Copy B ) " from my HSA Trustee to the IRS . This is very similar to a 1099 informing the IRS of my 2007 HSA deposit .
For those users of TurboTax , don't spend too much time looking for the form in your software as I did last year cause it doesn't exist . This is just your copy for your HSA records to be filed with your Form 8889 to support your " Health savings account deduction " on line # 25 on your 1040 return for your HSA deposit .

-- posted by allancoleman

» Chgo - 2008 HSA

In response to 2008 HSA deposit posted by allancoleman:

Thanks to Allan and others here for all of this information. I finally made the switch, and it was confirmed this week by BCBS of IL.

My monthly payment went from 1995.95 with AFLAC to $427 with BCBS, and the policy was slightly better with coverage and hospitals/doctors.

(If anybody sees that little white AFLAC duck, let me know, because I'm gonna shoot that little sucker!! )

Right now, I think I'm going to go with Bancorp for the HSA, since I like their fee schedule better, debit card and check writing, web site, and their selection of 1500 funds for investment. (unfortunately, nothing from Vanguard)

Why is Vanguard so far behind on this?

Anyway, Allan, I'm thinking of making a "sticky" of this information over at the Google site for other dumb people like me that got ripped off for years. Of course, I'll need your permission to copy some hints and links over there, (with proper acknowledgements and recognition) so I'm politely asking. If not, I certainly understand.

Thanks, again, Allan. I doubt if I'll ever get to the Islands, but if I do return up to Alaska, you and the wife have a big dinner due from me for this type of savings!

-- posted by Chgo

» Chgo - 2008 HSA

In response to 2008 HSA posted by Chgo:

Here are some links I came across for HSA banks. (Some might be duplicates posted before) (Sorry about the HTTPS ones...........use copy and paste)

http://www.hsainsider.com/Open/AdminFI.a...

http://www.besthealthquotes.com/hsa_bank...

https://secure.thebancorphsa.com/frameset.asp

https://enroll.exantebankhsa.com/vanguardhsa/

http://www.hsaadministrators.com/index2....

A nice comparison of 5 banks in chart form:

https://www.ehealthinsurance.com/ehi/HSAAdministrators.ds?mcei.app.terminalID=__tid__2_

Bancorp has a list of over 1500 funds to choose from for investments. Exante and HSAdmin have Vanguard funds.

All have different fee schedules, so "buyer beware" and "Do your own due diligence" applies.

-- posted by Chgo

» allancoleman - IRS Publication 969

In response to 2008 HSA posted by Chgo:

No problem on that dinner , Chgo . You know how to get ahold of me here on Suite101 to find out where I am at that particular season .

The latest IRS publication 969 , " Health Savings Accounts and other Tax - Favored Health Plans for use in preparing 2007 returns " , is now available on the IRS web site at :

http://www.irs.gov/

As you can see under the " What's New " section on the front page of this publication , the " new rules for 2007 " make these HSAs easier to manage , especially the tax deductability of them .

-- posted by allancoleman

» Normxxx - IRS Publication 969

In response to IRS Publication 969 posted by allancoleman:

So X builds up a nice "medical nest egg" under HSA and gets to be my age with the nest egg about twice his insurance deductable. How does he keep from drawing down his "medical nest egg" to zero*? Or, alternatively, what age should he opt for 'medigap' insurance to keep the deductables and premiums reasonable.

*I am in what I consider excellent health (for 75+), but I have a cardiologist (hypertension), an orthopedist (spinal stenosis, i.e., "bad back", and torn rotator cuff), a gastroenterologist (periodic colonoscopy), dermatologist (rosacia + "weird stuff"), an allergist and an otorhinolaryngologist (allergic rhinitis), ... all of whom I visit regularly.

Fortunately, I have FEBP (Federal Employee's Benefit Package), which now acts as a "medigap". For about $120 a month (Blue Cross/Blue Shield, government pays approximately 70% of premium, or about $250 in addition to what I pay), it covers ALL copays, coinsurance, and whatever else Medicare does not pay (unless it is deemed as a non-medical or a 'frivolous' medical expense- which I can appeal to my FEB Insurance overseer). It also covers ALL drugs (only a copay for that, as there is no basic Medicare coverage: $20 or less for any generic; $35 for any non-generic- 3 months supply- and I and my doctor get to choose, NOT the insurance company). I just got through using 6 months of a dermatological prescription which cost around $1500 a month- $9000, total- but only cost me $70, total.

-- posted by Normxxx

» allancoleman - IRS Publication 969

In response to IRS Publication 969 posted by Normxxx:

HSAs , Normxxx , are for folks without the excellent retiree medical coverage you have . I too have excellent retiree medical coverage from my employer and am blessed with excellent health as you are too . I can now well afford the health care premiums and the expenses of my regular checkups . I use my HSA as a catastrophic health savings plan in case I no longer can afford my health care costs later . In the meanwhile I can very well afford the HSA deposits now and the tax decduction I get on those HSA deposits .

HSAs will become a bigger part of our national health care solution as they will get more and more liberal and less restrictive . It puts health care decisions in the hands on the individual and not the insurance company . I presently have in excess of $21k in my own HSA account that can be used by my wife or I for the rest of our lives for medical expenses . I intend to open a seperate individual HSA account in my wife's name for tax years 2009 and 2010 so my wife could have an additional $8k to $10k . Total HSA assets could be as much $30k to be used later if necessary .

-- posted by allancoleman