HSA account questions????

[cruisnfamily]

Ok, DH's open enrollment is going on right now and I need some info. HSAs may be offered to us for the first time ever with a high deductible plan. This seems like it could be a great thing for us. but I have some questions

I understand the basics of the HSA accounts and they seem MUCH better than the FSA medical accounts that we had before(which we didn't use). DH's employer is not familiar with these and I need to give them a quick rundown on them.

1)Does anybody have a good link explaining HSAs?
2)Does the money that you put in there EVER expire? Or is it there forever until you need it for a qualifying expense?
3)Can you put in whatever amount you want?
4)What are the tax pros and cons?
5)Positives to the HSAs?
6)NEGATIVES to the HSAs?

Thanks for all your input!

 

[cruisnfamily]

Never mind!

Just found out that although we have the choice of what is definitely a high deductible plan, it doesn't qualify with the IRS as a HDHP so the HSA is not a choice.

Now I'm thinking about doing my own health care spending account. We'd save $170 per pay with the new plan. The coverage is nowhere near as good as what we have now but we don't have many health care expenses and never get our money's worth out of our insurance. I figured if I saved $100 per pay with the new plan, our income would increase by $70 per pay and we'd build up a pretty good stash to pay for medical expenses. I could transfer out of there for prescriptions, co-pays and all the stuff that won't be covered on the new plan.

Still mulling it over

 

[champagne27]

Oh - there is alot to HSA's and they can be a very good way to save money. If you have the exact details of the HSA I could answer your questions better. What is the deductible amount? There is a limit to what you can put in, the money does not expire.

If you or a covered family member have medical issues it is probably not the best option for you - you will most likely use all the money you put into the account and not get a chance to save. If you have one healthy year though, you can ususally come out ahead.

Post the plan detail or PM/email me and I can let you know more specifics and do an example for you.

 

[cruisnfamily]

Champagne.....thanks but see my post above yours. Looks like it's not an option. Now I"m thinking about doing it on my own...We'll see.