| Author | Message | ||
     Fanno1 Yavvanam Kaatesina Bewarse Username: Fanno1 Post Number: 9971 Registered: 03-2004 Posted From: 24.249.211.73 Rating: N/A |
Gochi bro, say if you accumulate 50 K by the age you are 35-40, and never use them, you should be happy that you are healthy. You shouldn't worry even if you have to pay the penalty when you withdraw. When you want to use this money for any Health care expenses, copays, deductibles, medicines and there are many items you can buy using the HSA card. All this money you are not paying the income tax (assume that at your salary you pat at least 25% federal) When you want to withdraw that money for non-medical expenses when you are under 65, you pay tax and 20% penalty. When you are 65, you just pay the income tax, no penalty. You can invest this money like 401k. so the money will grow. Can I use the money in my HSA for non-medical expenses? Yes. If you do though, and are under 65, you’ll be taxed on the amount you use and assessed a 20 percent penalty. Once you’re 65, you’ll be taxed for monies used for non-medical expenses, but won’t pay a penalty. http://ucnet.universityofcalifornia.edu/compensation-and-benefits/health-plans/m edical/health-savings-account-faq.html |