Health Savings Account-Health Savings Account Info

scorpiomaj27 asked:


I’ve read the wikipedia, IRS site, etc and still have questions. An answer to even just part would be greatly appreciated:

1. I’ve read the yearly limit is around $2900, is that CONTRIBUTION limit or a BALANCE limit?

2. What is my (essentially) lifetime limit? In other words, if during year 1 I spend $0, then by the end of year 2, I could theoretically (if nothing changes) have a balance of $5,800, correct?

3. If I have some kind of emergency and need to tap into that money, HOW do I pay the tax/penalty on it?

3b. How much of a penalty are we talking about?

4. Considering my HDHP has a $3000 yearly out of pocket maximum. Can the Health Insurance carrier ‘see’ my other costs (that it will not pay anything for), such as lasik, and can that be subtracted for my out of pocket maximum purposes?

4b. So this must mean that my insurance company somehow can see my HSA balance and transactions? That doesn’t seem to make sense.

5. How closely does the IRS watch?

Joseph Hatchet

jaypez77 asked:


Right now at work I’m enrolled in an HMO Plan as well as a dental plan. I am a 30 year old single male with no health problems at the moment. I only go to the doctor for a yearly physical, and I go to the dentist twice a year for a cleaning (I’m not sure if the dentist part is relevant). I’m paying almost $1,000 in medical and dental premiums combined, plus co-payments of $20 when I go for a physical.

Would the HSA offered by my employer make sense for someone like me? I figured that even if the total yearly cost ends up being the same, at least that money will be mine and not lost to the insurance companies, plus I will get contributions from my employer. Am I thinking about this in the right way, or should I be considering other factors as well?

Adolfo Finders

Gman asked:


I’m thinking of buying a house in the next year. I still haven’t funded my Health Savings Account yet. If I do, can I use that money to pay for my house without penalty? I know you can do this with an IRA, but what about a health savings account?

Dudley Repass

IndianaHoosier asked:


Q: What would you do to curb the high cost of medical health care & to help those who don’t have health insurance?

A: The real question is: How are we going to keep health care costs down, because we have the highest quality of health care in the world in America today? And unlike the Democrats, I’m going to preserve that quality of health care, and at the same time stop the inflation & the skyrocketing costs of health care. And there’s a couple of principles:

* To make the RECIPIENT of the health insurance much more responsible in health-care costs by eliminating the existing tax break for employers who provide their workers with health insurance
* To address wellness & fitness.
* To give every American family a $5,000 refundable tax credit so they can go anyplace in America to acquire the health insurance policy that best suits their needs.
* And, if they’ve got money left over, then invest it in a health savings account.

Do the math, do you really think you come out ahead?

Gilbert Profitt