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URL:  https://boards.fool.com/gtgt-i-un-retired-a-couple-of-years-back-and-26009228.aspx

Subject:  Re: HSA - retirement investment? Date:  10/18/2007  9:12 PM
Author:  ziggy29 Number:  4452 of 5253

>> 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.

#29
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