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Subject:  Re: HSA - retirement investment? Date:  10/18/2007  9:12 PM
Author:  ziggy29 Number:  4452 of 5260

>> I un-retired a couple of years back and returned to work full time. My current employer will be offering health insurance plans with HSAs next year. <<

Same here. I'm interested to see how it compares in terms of deductibles, company contributions and premiums, to our existing high deductible options.

>> The only pitfalls I can see:

- If retirement finds me superhealthy, then I might not be able to spend all of that HSA money. In that case, it would go to my heirs. ,

- The HSA fund investment options are limited to what the HSA plan adminstrator allows.

As for your first comment, you will be able to withdraw this for any reason starting at age 65. It will continue to be tax-free to withdraw for health care purposes, but taxable as ordinary income (but no penalty after 65) for other purposes, much like a 401K.

As for the second, yes, that's a concern. I am waiting to see what investments will be there. Still, I'd probably play it safe anyway until I had 1-2 years of out of pocket maximums in there, and then I'd probably start investing what's above that (assuming we can). Some administrators have little more than low-yielding savings accounts, and if that's the case, it wouldn't make much sense to fund an HSA beyond a couple years of potential out of pocket maximums. But in reality we'll probably need to see the details and play with a spreadsheet.

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