Reply to Tell me how you use your HSA?

Forum Index » Money and Finances

Reply to "Tell me how you use your HSA?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]We have about 40K in HSAs invested.  Don't plan on touching it for medical expenses.  We just pay out of pocket for medical expenses.

I love the HSA.  It combines the best of a regular IRA and Roth IRA (tax free going in and tax free coming out) except that it's limited to medical expenses.

Here's the best part.  The IRS does not really track how it is spent nor ask you to prove it was spent for medical expenses.  For instance, about 3+ years ago, I withdrew $10K from that account to invest in the stock market by mistake (instead of liquidating a deposit account with the bank).  The bank wouldn't "fix" my mistake because it was several months before I realized.  [b]The IRS did not come after me to prove I used it for medical expenses. [/b]

[/quote]

Not yet, but if you are audited, you will be in hot water.  You know you could have completed a form and sent the HSA custodian a check for the money taken in error (maybe you still can) to set things right and not have to worry about the possibility of getting "caught."[/quote]

I did not know about the form (nor did the credit union where I had this account).  This was a while back and I doubt the IRS will come after me.  If they do, I will have to pull medical receipts from the past that can go against that amount.  At least that's the theory. :-).

My point is, audit likelihood in general very low 1 in 160 or 0.625%) .  I'm not too worried about them opening the books on me.  I know several people that do the backdoor Roth even though they are not qualified to do so and nothing has happened to them.      [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics