Comments

  1. Tim Gordon says:

    I learned a lot fro m this post. Actually, a friend of mine has this savings account but everytime I ask her what is it for, I don’t get a definite answer. Thanks for enlightening me on the topic.

  2. We had a bad experience with our HSA. All our funds have been frozen since last year due to the company that processed the transactions filing bankruptcy. A couple of employees embezzled millions forcing them into bankruptcy. I am beginning to think we will never see any of our money from that account again. The account was FDIC insured but they won’t cover it because the actual bank where the money was held did not go under.
    I just want to warn people that this could happen to their account.

    • Interesting. Shows that you really have to look into who is handling the accounts and how reputable they are.

  3. HSA information was very helpful. As a Rhode Island bankruptcy lawyer, one of the biggest reasons I see people file bankruptcy is due to medical expenses. If more people would combine high deductible health plans with an HSA, over time, they would have the resources necessary to handle future medical emergencies. It is all about planning for the future (and getting an immediate income tax break doesn’t hurt).

  4. I have something similar through work but opted against it since I’m young and unless something happens, tend not to need health assistance.

    • That’s the whole point though, something could happen. And that you’re young means you can build up the savings over more time than many.

      Just a thought.

  5. We opened an HSA tied to a high-deductible plan two years ago and it has been great. We previously had an HMO and the premiums became out of reach. Then we tried a PPO which is similar in structure to an HSA, but the deductibles were written in such a way that we really got messed over. The HSA helps me know what my maximum medical expenditures are and that is what I plan for when it comes to my contributions.

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