Originally Posted by
LeineLodge
So the last sentence really is the crux of what I'm after. The only parts I'm not a fan of so far are:
1. Potentially accruing WAY more than $50k...more than I'll ever be able to spend? Doubtful considering where things are heading with health costs, but I guess the math needs to be run just the same.
2. More importantly, as we all progress and start surpassing 401c limits, will the 401c excesses be mandatorily directed to the VEBA, which is how #1 would occur. At $1k/year, I'm not really that worried about ending up with too much in the VEBA. At $5k/year does the math change? I assume the principal would be invested and compound over the next 3 decades? How would each individual's basis be accounted for?
It's a good problem to have - contemplating a situation where we have too much money to spend on retiree healthcare. Of course, if that money could be better spent somewhere else...
For me, from what I've read and watched so far, the crux of this comes down to how #2 will be handled by the IRS.
Insurance companies that do research on this say to expect around $250K AVERAGE in retirement towards health care costs. Medicare Parts B and D are not free with premiums based on Adjusted Gross Income, you'll want to buy a Medicare Supplement to help with copays and deductibles, and you will have those copays and deductibles. End of life expenses can be particularly expensive even if you've been healthy for most/all of your life so I wouldn't worry about too much in the HSA until you get to that $250K (of course you can invest a good portion of that into the market for returns)>