Announcement

Collapse
No announcement yet.

Maxing out 2021 and 2022 HSA contributions as an intern

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Maxing out 2021 and 2022 HSA contributions as an intern

    Just had my first day of intern year orientation and have a quick question regarding HSA accounts.

    As a preliminary-medicine resident, I will only be at this institution for one year before transferring to another institution for my advanced position. Therefore, the available 403b and 401a options are worthless to me given the three year vesting schedule. In my mind, the only two retirement accounts worthwhile to me this year are my Roth IRA and potentially an HSA.

    Originally, I was planning to just fund both my fiance's and my Roth IRA and call it a day, but now I'm considering instead maxing out my employer's HSA for 2021 (3,600) and 2022 (3,600) and contributing whatever remainder I have to my Roth IRA account.

    The tricky part is that my institution will be paying the premiums of whichever health insurance plan I choose. There's essentially a Cadillac plan, a mid-tier plan, and then the HDHP. Regardless of which plan I choose, I pay $0 in premiums. I'm considering enrolling in the HDHP (despite being told to enroll in the Cadillac plan) to simply take advantage of the HSA. I have no medical conditions and haven't been to the doctor other than the PCP for a physical in a few years so I highly doubt I'd have a lot of out-of-pocket costs. I'm concerned though that I may be overlooking something. Is it wise to enroll in the HSA at my institution if I will be leaving in 12 months. Does the seed contribution stay with me if I leave in 12 months. Can I max out both 2021 and 2022 HSA within a 12 month period. Should I just go back to my original plan of maxing out the Roth IRAs and enrolling in the Cadillac plan? I asked the HR department these questions and I'm awaiting their response. Just trust y'all a lot and would appreciate your insight.

    Thanks

  • #2
    If your premiums are $0 regardless I would get the best quality health insurance. You can always find other ways to invest the money.

    If you don’t use the HSA, I’d start with the Roth IRA, then potentially the 403b (Roth if available). Employee contributions should vest immediately.
    “Work” is a four letter word for good reason.

    Comment


    • #3
      Originally posted by Lithium View Post
      If your premiums are $0 regardless I would get the best quality health insurance. You can always find other ways to invest the money.

      If you don’t use the HSA, I’d start with the Roth IRA, then potentially the 403b (Roth if available). Employee contributions should vest immediately.
      Thanks for the input! Yes, I can make post-tax contributions to the 403b. Sounds much simpler this way, too.

      Comment


      • #4
        Originally posted by Huggy View Post
        As a preliminary-medicine resident, I will only be at this institution for one year before transferring to another institution for my advanced position. Therefore, the available 403b and 401a options are worthless to me given the three year vesting schedule.
        I'm not sure what you are trying to say here. As pointed out by Lithium, vesting schedules only apply to employer contributions. Employee contributions are always 100% vested.

        Comment


        • #5
          You write like you'll have sufficient disposable income without the HSA/Roth/403b. If so, use the HSA - it is highest on your investment waterfall than all others. Remember HSA money is triple deductible. After intern year, transfer the HSA to Fidelity- for lowest fees.

          Comment


          • #6
            There's essentially a Cadillac plan, a mid-tier plan, and then the HDHP. Regardless of which plan I choose, I pay $0 in premiums. I'm considering enrolling in the HDHP (despite being told to enroll in the Cadillac plan) to simply take advantage of the HSA.

            Take the better insurance , for "free", some times you get unexpected curve balls in life. I dont understand the concept of intentionally taking a health plan with less upfront coverage , unless it saves you premium dollars.

            Comment


            • #7
              https://livelyme.com/blog/hsa-contri...-year-changes/ If you go HSA route, make sure you know the rules for how much you can invest (last month rule, prorating the 12 months, etc) in your situation. I don't think you can max out both years, but will leave it to the better informed to discuss.

              Comment


              • #8
                Yes, the 12-month rule allows maxing out the full year's contribution limit if HSA eligible on 12/1. However, the individual must remain HSA eligible for the entire following year.

                If you are not 100% sure you will have an HDHP with your next employer. You should not use the 12-month rule. You will only be able to make pro-rated (by month) HSA contributions for each year.

                Comment

                Working...
                X