Originally Posted by
Spicy McHaggis
A lot of people have heartburn over the fact it goes back to the pool if there is no spouse or eligible dependents, but to me the tax free nature of the plan more than outweighs it. It’s a pretty good deal.
The vast majority are okay one way or the other. At $1 per hour, over a 30-year career, at a modest 5% growth, you’ll have $70k going into retirement. But with estimates of 65-to-grave health care costs running at $250k+, some are all in (you can even sell vacation* to go directly into RHA). Others don’t even want the $1/hr going in and would like that to be negotiated out.
*Q17: I’ve heard I can put forfeited vacation into my RHA, is that possible?
A: Yes, it is possible to direct your vacation forfeiture directly to your RHA. At the end of each calendar year the company will give you the option to make this election. The election is made in the calendar year prior to the beginning of the vacation year. For example, an election made in December 2019 to have the vacation forfeiture to directly into the RHA is applied to the 2020–2021 vacation year. This forfeiture is processed on or before June 16, 2021.