HSA questions

[J]

1) Is it possible to have an HSA with a MERP simultaneously?  I believe there are ways if the MERP is only used to reimburse certain expenses (ins. premiums, vision/dental, etc).  But if your MERP is not set up to only reimburse such expenses or this not really monitored, is that going to be an issue?

 

2) Are you better off funding it with payroll deduction vs. post-tax dollars?  I don't have the option to do it with payroll deduction, but if I could, would that be better?  I believe you could save the SS and medicare tax if done with payroll, but you also reduce your SS benefit down the road (may not matter as SS may not even be around for me 25 years from now).

 

3) If you can afford to pay your medical expenses with post-tax dollars, are you still better off just paying them that way and not touching the HSA at all--ie. continue to let it grow tax-free?  Or are you better off still paying your current expenses with HSA funds?  I am not interested in retaining receipts for my expenses and then tapping into the HSA 25 years from now for those expenses.  So it would just be paying with current money and not ever getting reimbursed for those expenses

Thanks in advance for your responses.

[G]

J wrote:

1) Is it possible to have an HSA with a MERP simultaneously?  I believe there are ways if the MERP is only used to reimburse certain expenses (ins. premiums, vision/dental, etc).  But if your MERP is not set up to only reimburse such expenses or this not really monitored, is that going to be an issue?

 

2) Are you better off funding it with payroll deduction vs. post-tax dollars?  I don’t have the option to do it with payroll deduction, but if I could, would that be better?  I believe you could save the SS and medicare tax if done with payroll, but you also reduce your SS benefit down the road (may not matter as SS may not even be around for me 25 years from now).

 

3) If you can afford to pay your medical expenses with post-tax dollars, are you still better off just paying them that way and not touching the HSA at all–ie. continue to let it grow tax-free?  Or are you better off still paying your current expenses with HSA funds?  I am not interested in retaining receipts for my expenses and then tapping into the HSA 25 years from now for those expenses.  So it would just be paying with current money and not ever getting reimbursed for those expenses

Thanks in advance for your responses.

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1) The accountant for our practice said no, but we didn't get a second opinion.

2) Probably not talking about enough $ to make a difference, particularly if it means you get stuck in a crumby plan.

3) Search the forum [top right of page] this has been debated quite a bit in other threads, bogleheads similarly.  I'm saving my receipts, just in case I want to buy myself a nice little present; realistically, I will use my HSA when I'm older and grayer and/or when I'm not having the cashflow that I currently enjoy.  With the run up over the last 10 years--I'm invested 100% equities--my HSA balance is more than a rounding error.