My company offers a high deductible health insurance plan with the option for an HSA account. This plan is free to employees and the company actually kicks in $50 every month to the HSA as an incentive to take it over the traditional PPO POS plans. I’ve been enrolled for the last year as an individual and the money I put into it was very nice to have when my wife and I had our child. Now we are all on my wife’s insurance but I’ve still got my HDHP and am thinking of re-enrolling next year as a family plan if it still includes a $50 kickback or is at least free. I’m thinking of contributing the maximum, $7000 into it and supplementing my income by pulling that money out of our savings. I figure I’ve got 1-2 more years before health insurance prices rise to the point where my company can no longer offer this plan for free. My thought process is that it would be nice to have $14,000, tax free in an account for health expenses that we can effectively use for the rest of our lives. The $7000 accounts for less than 10% of our total savings and is basically just sitting in a savings account collecting minimal interest. The HSA can be invested but the returns on it are pretty minimal as well so I think from the investment standpoint it’s a bit of a wash. Are there any major flaws in my thinking or blind spots I’m not accounting for here?
Submitted September 11, 2018 at 12:27AM by Bleachd https://ift.tt/2oUrx8Z
