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otc

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You're forgetting the growth on the 5k for the hypothetical 20 years. Also, I figure cash flow today vs. cash flow in retirement.
But it isn't the growth itself--just the difference between the pre-tax vs post-tax money growing (assuming you don't just blow any money you don't put in). You'd still get growth on your taxable funds, and that growth would only get taxed at cap gains vs income rate for non-receipt HSA distributions.

I'm too lazy to work out the math, but I don't think the gains are insane, especially considering the 3.5k/person limit.

You still come out ahead...but you'd better come out ahead if you are the crazy person stashing receipts for 20 years.
 

Omega Male

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Just sponsor a SPAC and be done with it you quibbling betas.
 

Marc Voorhees

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But it isn't the growth itself--just the difference between the pre-tax vs post-tax money growing (assuming you don't just blow any money you don't put in). You'd still get growth on your taxable funds, and that growth would only get taxed at cap gains vs income rate for non-receipt HSA distributions.

I'm too lazy to work out the math, but I don't think the gains are insane, especially considering the 3.5k/person limit.

You still come out ahead...but you'd better come out ahead if you are the crazy person stashing receipts for 20 years.
Is there a chart to prove this?
 

chickenfark

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The funny thing with insurance is you don’t want to use it but when you need to for something big, you say f-it and spend as much as possible.

Someone smarter than me needs to make something where the incentive to be healthy and not spend so the savings are shared with the patient. I realize there are weird Co-op plans but those don’t work for large pools.
i work in healthcare and there’s an optimist part of my brain wants to build something that does that. Insurance is such a wild industry to me where one hand is not taking the other, for example where pharmacy budgets and physician administered budgets are tracked in silos so there’s no incentive (broadly) to make an investment in one side that could pay dividends on the other. And then you have entire systems built to just kinda make it annoying to provide the stuff patients ultimately need, which adds churn to the system and so on. Unfortunately you’d really need to move mountains to make big systemic change in this space with how much money is involved in it.

(just my two cents after some beers)
 

gettoasty

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@Marc Voorhees

JP Morgan Asset Management prioritizes an HSA even before your 401(k). Here's a chart to prove it. As retirement accounts go, this supports the benefits of HSA as described so far if only it is marginal difference. If you really want to see the math behind, I may ask someone to run this at work as I am little curious too.

1602998396049.png
 

brokencycle

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I would never put money into my HSA before hitting the 401k match. That's incredibly stupid. I get an instant 100% return on my 401k contributions. How would I come close to that in an HSA?
 

Texasmade

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I would never put money into my HSA before hitting the 401k match. That's incredibly stupid. I get an instant 100% return on my 401k contributions. How would I come close to that in an HSA?
How the fuck do you get an instant 100% return?
 

gettoasty

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FWIW after making my post I did reread that bottom line and it says "...if eligible for match."

I've wanted to open up an HSA for a year or more now but still trying to find out how to connect my employer's payroll with a provider. Our company recently added some life and AD&D for everyone. Maybe HSA can be next.

The most common 401(k) match I've seen is "put in 5 to get matched 4" or 100% of first 3%, then, 50% of the next 2%. This is before any safe harbor and profit sharing.
 

Texasmade

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FWIW after making my post I did reread that bottom line and it says "...if eligible for match."

I've wanted to open up an HSA for a year or more now but still trying to find out how to connect my employer's payroll with a provider. Our company recently added some life and AD&D for everyone. Maybe HSA can be next.

The most common 401(k) match I've seen is "put in 5 to get matched 4" or 100% of first 3%, then, 50% of the next 2%. This is before any safe harbor and profit sharing.
My company match is 100% on first 3% and then 50% on the next 2% so in total it’s 4% of my total salary.

If you’re on a high deductible plan with an HSA, it makes sense to contribute to get max ER 401k match and then max contribute to the HSA. The HSA comes in handy when you have an accident and your deductible is like $3500. I know from personal experience when I had to go to urgent care earlier in the year.
 

venividivicibj

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Brokecycle never said that though. He just said he gets a 100% return without specifying whether it was only up to a certain point.
I think he was implying based on the text from the slide from the first '401k' bullet
 

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