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Useful HSA Tips: Defer Reimbursement

Tuesday, December 17, 2013 - 5:23 AM
MyMoneyBlog has some useful tips in his latest review of health savings accounts (HSA):

Some people recommend not taking any withdrawals even if you have current medical expenses and just pay for it out-of-pocket. This way, your contributions will be able to enjoy potentially decades of tax-free growth. There is no maximum allowable balance. There is no mandatory disbursement age.

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What banks or credit unions do you use for your HSAs?
5
Ken TuminKen Tumin5,441 posts since
Nov 29, 2009
Rep Points: 123,675
1. Tuesday, December 17, 2013 - 8:48 AM
I use United Bank of Michigan for my HSA account. They offer a great interest rate on the balance, but currently do not offer a mutural fund investing option. I keep bugging them every year for the investment option. There responce has been that the average balance of HSA accounts are not high enough to warrent offering the investment option. Here's hoping that others start saving in thier HSA account to warrent it.
6
dpandslemmendpandslemmen22 posts since
Feb 10, 2011
Rep Points: 107
2. Wednesday, December 18, 2013 - 9:16 PM
The only problem with letting your money accumulate in a HSA account is that you have to save all the receipts for any medical expense you ever had. So if you own a HSA in which you have made the maximum HSA contribution for ten or more years, that will require a lot of recordkeeping in order to withdraw the money tax-free ten years from now.

I have owned a HSA account for 7 or 8 years, and recently I have been taking tax-free distributions to reimburse myself for prior medical expenses.
3
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
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