Why Max Out Your HSA | BeatTheBush

Have you noticed that little thing in your pay benefits such as the HSA account that requires a high deductible health plan? It may see a bit random but this savings vehicle is actually a very useful tool to help you reduce you taxable earnings! Typically, you can use the money in your HSA tax-free for qualified medical expenses. But why should you only contribute what you use in one year? Why not just max it out because you will eventually use this money for medical expenses anyway? Worst case is you contributed too much but you can still take this out of your HSA after 65 and you only have to pay income tax with no additional penalty. It has the advantages of a 401k PLUS being able to use it tax free now on medical expenses. Therefore, this should be prioritized over 401k contributions but AFTER 401k matching. Support more videos like this along with getting a bunch of perks here: http://www.patreon.com/BeatTheBush Get a free audiobook and 30-day trial. Even if you cancel, you still keep the book and you still support my channel for signing up. Support my channel by signing up to help me make more videos like this: http://www.audibletrial.com/BeatTheBush ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ Credit Card for Starters Who Should NEVER Get a Credit Card: https://youtu.be/aNYZkMgTyb0 Only Use Credit or Only Use Debit: https://youtu.be/J0ZRgBIG39Q Credit Card Basics How Credit Card Calculates Interest: https://youtu.be/0Z2nWQdqa2A How Credit Card Grace Periods Work: https://youtu.be/8WuH3-PsjCA Difference Between Credit Card Inactivity and 0% Utilization: https://youtu.be/rtfJMZf_IrM Credit Card Statement Closing Date vs. Due Date: https://youtu.be/3-knvT7JbTk Does Canceling Credit Cards Affect Credit Score: https://youtu.be/jYGZukw5i-Q Can You Afford a No Limit Credit Card: https://youtu.be/sdAh7hzgJoU Credit Card Balance Transfer Hack: https://youtu.be/F2Foqg2ZTEw Credit Score Less Than 700 Maximize Credit Score while in College: https://youtu.be/pxGECoQoLLA Build Credit Fast with a $500 Credit Limit: https://youtu.be/attQKzngqoE How to Pay off Credit Card Debt: https://youtu.be/XY8YSPapnF8 How to Build Credit with Bad Credit or No Credit [w/ Self Lender]: https://youtu.be/RNXutBGAnlM How to Boost Your Credit Score Within 30 Days: https://youtu.be/LyBjciz4-zg Credit Score More Than 700 How to Increase Credit Score from 700: https://youtu.be/MCFKNBcyAWs 740+ is Not Just For Show: https://youtu.be/1fGcpxurzgU My Credit Score: 848, How to get it Part 1: https://youtu.be/dEZLZQXRBjQ My Credit Score: 848, How to get it Part 2: https://youtu.be/Y6-SB35C7Pc My Credit Score: 848 - Credit Card Hacks and How I got it: https://youtu.be/8Xz3hi3VWfM Advanced Credit Card Tricks How to get a Business Credit Card: https://youtu.be/S3srld5_l5Y Keep 16 Credit Cards Active: https://youtu.be/yAzkEK8Y6E8 Rejected for a New Credit Card with 826 Credit Score: https://youtu.be/66O505Oj5e4 Make Credit Cards Pay You Instead: https://youtu.be/wKMJdX1fQJA Credit Card Low Balance Cancellation $2 per mont [Still Works]: https://youtu.be/2DJjfvcMCcg Cash Back Are Credit Card Points Taxable?: https://youtu.be/Tw90h8I5JNk How to Churn Credit Cards: https://youtu.be/uw__fl38Dk4 Best Cash Back Credit Cards for 2017: https://youtu.be/e_uJweUsiDk 5% Cash Back on Everything: https://youtu.be/q9g_rySm_tI Always get 11% Off Amazon Gift Cards and Amazon Hacks: https://youtu.be/vbv6Rj2uUr4 Max Rewards: What's in My Wallet: https://youtu.be/cmJDFcbjFho How I Make 200 Dollars in 10 Minute [Hint: Credit Card Bonus]: https://youtu.be/pegq4G7ZhTI When Your Best Cash Back Card Gets Cancelled: https://youtu.be/pe7OuqxGi9M Amex Blue Cash Preferred vs. Everyday Effective Cash Back on Groceries: https://youtu.be/3ezD_QwS5e0 Double Dip Groceries Cash Back with Safeway Just for U: https://youtu.be/7kBl0W_L29U Milk the Barclays Cashforward Card for the MOST Cash Back: https://youtu.be/qf2gvrk6Evo This Channel: BeatTheBush I've obtained a high credit score of 848 out of 850 and I am glad to share the knowledge for everyone. Since 3 years ago, I've started making numerous videos that helped people increase their credit score that are free and accessible to all. Please enjoy my channel. Other Channels: BeatTheBush DIY: https://www.youtube.com/BeatTheBushDIY

Comments

1. The HSA contribution is also exempt from Social Security and Medicare tax if done through payroll deduction. Therefore, the total cost is reduced by 32.65% for wage earner in the 25% tax bracket. So it is sort of like getting a 48% match without getting a match. Combined with tax free compounding and withdrawal, I can see why this might be more important than doing your 401k with even with a match. Even if you were healthy to age 65 and older, the money can be used for Medicare premiums tax free. The downsides are costs in terms of management fee may be higher than with an IRA or other plans, if you beneficiary is a non spouse, the HSA becomes taxable in the year of death (absolutely no stretched HSA for a non spouse beneficiary) so if you have a high balance it may be an issue.
2. Don't have a high deductible health plan, I would have liked to get one.
3. Once again a great video. Thanks for all the info on the HSA.
   I have one request, can you please make a video on how to further invest in mutual funds using HSA.
4. HUGGGEE tip that wasnt mentioned.
   You can pay out of pocket, and pay yourself from the HSA at any point after the fact. This allows the money to compound longer.
   
   say you have 1000 in account. if you have a 50o bill and you pay it with HSA account, then in 10 years your account may only grown to 1000.
   But if you didnt use acount money, and saved receipt. Then 10 years the account would be worth 2000. Then you can choose to file the payment, and pay yourself back 500. Now your account is 1500 instead of 1000 after 10 years.
   
   From my understanding there is no time limit on reporting the expense.
5. i started mine in nov of 2016.....
   420$ HSA for last 8 weeks suckkkkked.
   2017 is alot better
6. I knew about hsa. I used my hsa last year to pay off my Braces and ( all my dental expenses) especially my employer matchs up to 300$ a year. Free money. By using my hsa i saved almost 1000$ in overall dentist expenses
7. I'm a canadian who now lives in the states and HDSPs and HSAs seem like... I dunno... you are rolling the dice.
8. You can also use your HSA to buy health insurance. If you lose your job, or have a gap in your coverage, you can purchase cobra or other forms of insurance with this money.
   
   Also, you typically get a HSA debit card to use for your purchases at the Dr. Pro tip, don't use your HSA card, but use your rewards credit card that gives you 2% back. Then use your HSA website to submit receipts and get your money back.
   
   The Trump Care plan is calling for a large increase in your HSA as well, to at least the out of pocket max. For an individual you should be going up to at least 5k.
   
   Lastly, if you don't need the money from your HSA, don't use it. Let it grow tax free, or for a time you don't have money, a job, etc. Use your regular savings to pay your out of pocket medical expenses.
9. Next to the free money your employer puts into a 401k, the HSA is the single best "account" you can have. Triple threat, money goes in tax free, grows tax free, comes out tax free. Max it out!!!
10. This is very helpful!! Thank you!!
11. FYI: You can use HSA money for Lasik Eye Surgery or Braces Treatment. A young and health adult, who wants these medical/cosmetic procedures, can get a nice discount by using their HSA account.
12. I reimburse myself from an HSA after charging all medical expenses on a rewards credit card.
13. Thanks for making the video for HSA. Please note HSA plans differ between States. While HSA is tax deductible from Federal taxes it is not for California, "Current California law (as of October 2005) does not conform to the federal HSA provisions. California tax returns start with federal adjusted gross income (AGI) and require adjustments for differences between federal and California law." You can find additional details in http://www.benefitscafe.com/hsa/taxtreatment/
14. Can you explain 401A, 403b, and 457b plans? Thank you in advance:)
15. I never knew any of this;and it makes me want to learn more, thank you.
16. I need some clarification at 3:40. Are you referring to simply withdrawing money from the HSA and not using it for health-related expenses?
17. Is HSA "transferable" between jobs?