1. jp says:

    The Mad Fientist does a great write up about HSAs….essentially cashflow all medical now (keeping all the receipts), then treat it as a Traditional IRA when you retire (cashing in those receipts).


    B/C you aren’t depleting the account, you never drop below the $5k limit you mentioned, so no (minimal) fees and the money has time to sit and compound.

    That’s crazy CA doesn’t recognize HSAs pre-tax! How absurd!

    1. Joy ( User Karma: 0 ) says:

      Interesting idea. Seems rather complicated. 🙂 Also — the $5000 limit is also a lie. If you put the $5000 into an investment account in your HSA (i.e. HSA Bank has TD Ameritrade) then if you don’t leave $5000 in the “savings” account (gaining very little interest), you have to pay the fees. I am pretty sure that’s how it works. I’d rather have the opportunity to invest in real ETFs long term vs keep $5000 sitting in the account with less than inflation gains. Since HSAs only let you put $3400 into them a year, it is def possible to get to the point where leaving $5k in the savings account isn’t a big deal – but my HSA account is only $7k so I moved it all over to investments. I’m thinking of avoiding HSAs in the future entirely unless I can figure something clever out (like what you linked to here.) But, man, do you really trust the government will have the same rules around HSAs in 30-40 years? Also — yes, it sucks that CA does not recognize the HSA. And no one talks about that either! It’s ridiculous.

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