HSA Bank - the mystery of the vanishing button

[Matt]

Here's a quick hit for you folks with HSA Bank accounts... you can open, and top up your accounts up until the tax deadline (typically the 15th April unless it falls on a weekend/holiday).

There's a button that appears between Jan 1st and April 15th that allows you to allocate to the prior or present tax year, just like you'd see for an IRA account. After April 15th the button vanishes magically, so you can't see it today.

HSA limits are:

• 2016: $3350 Single, $6750 Family
• 2017: $3400 Single, $6750 Family

The strategy: wait until after Dec 31st to check your balance for the year and see exactly how many payments were put into your account by your paycheck deduction and (if you are lucky enough) by employer contribution.

Deduct that amount from the total above, and if money permits load it up.

In terms of hierarchy of savings:

1. Company Matched 401(k) up to match
2. HSA
3. Anything else (assuming you're good on the emergency fund/don't sue me you Bad Hombre)

(PS - It doesn't have to be with HSA Bank, but they have this magic button, I assume other such banks do too... also - you can open up a completely different HSA account and fund it providing that the combined total contributions don't exceed the HSA Limits above)

PPS HSA's are great savings vehicles for the healthy.

PPPS This comes in real handy when you enroll at the end of the year, since you're able to take the full amount of the annual limit providing that you maintain the coverage for the next 13mths if you bail on it before that time you get a penalty...

 

[hdawg]

@Matt 2017 Single contribution limit is $3400 not $2400