HDHP and HSA question

Submitted by avengerki on Tue, 01/01/2008 - 21:14

Ok here is my situation. I am currently employed and have an HDHP insurance plan with an HSA, I am starting a second job. The second job offers health insurance with an HDHP plan as one of the options, they also provide a match to the HSA. Would having two HDHP insurance plans prevent me from contributing to an HSA? I know having regular insurance prevents contribution.

Thank you

Posted: 01 Jan 2008 10:11 Post Subject:

Ok I also want to add how does having to HDHP's affect each other? Does the money counted for one deductible count for the other deductible?

Posted: 02 Jan 2008 11:38 Post Subject: a small explanation!

Hi!
What I can tell you over here is that- in order to set up your HSA you need to have an HDHP, you should not have any other health insurance (which is not an HDHP) & should not be qualified for Medicare. You may register through your own insurance companies, banks or may accept it from your employer. So, the contributions to the accounts can be done both by you or your employer. So, if you make the contribution yourself, then it would be tax exempted but not the other way round!
Hope you understand what I feel

Also, over here I'd like to share some things with you all & it is called 'self insurance' ampminsure.org/manage/about775.html
...Spacejam88

Posted: 02 Jan 2008 12:06 Post Subject:

One more thing I'd like to say is that the funding that you do with your HSA has to be controlled by you, since it is you who set it up! Your withdrawals would be tax-exempted if they are meant for qualified medical expenses. So its better that they are not used for any other expenses in order to avoid the tax-penalties. Your HSA is capable of holding your savings through your investments eg. stocks or bonds etc. & be carried forward every year. But yeah, if you opt out of the HDHP policy, then your contributions to your HSA has to come to an end. Regards, Polaridge_coolman

Posted: 02 Jan 2008 04:49 Post Subject:

So as long as you have multiple HDHP insurance and no other regular insurance you should be fine?

Posted: 03 Jan 2008 11:27 Post Subject:

At least I'd feel so...let others share their views in case they'd like to differ!
Polaridge_coolman

Posted: 15 Feb 2008 03:18 Post Subject:

Ok here is my situation. I am currently employed and have an HDHP insurance plan with an HSA, I am starting a second job. The second job offers health insurance with an HDHP plan as one of the options, they also provide a match to the HSA. Would having two HDHP insurance plans prevent me from contributing to an HSA? I know having regular insurance prevents contribution.



The more important question is which plan is better! There rarely is a reason to have two major medical insurance policies.

So as long as you have multiple HDHP insurance and no other regular insurance you should be fine?



This depends on what you consider to be fine. Is it fine to have a $1500 deductible or would you prefer $5000. Are you going to be able to fully fund the HSA as single person or family? Do you have children and are you concerned about accidents and being able to pay for medical procedures. If so, did you purchase some accidental protection to help you while you save up money inside your HSA?

If your employer will match what you put in your account I would take the $2900 you can invest this year divide b 2 and then again by 12 and set that baby up on automatic draft. Then invest the money or leave it alone depending upon your risk tolerance.

Hope this helps.

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