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Old 02-12-2008, 09:43 AM
  #4  
wildcat1
Gets Weekends Off
 
Joined APC: Nov 2006
Posts: 136
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On a slightly seperate note, DON'T USE AN HSA!!! OMG, that is the worst scam you will find. You are better off setting up a high interest savings account and making direct deposits into it. Here's why:

When you put money into the HSA you don't pay taxes, but you don't earn interest (in most cases) either. That means your money is just dead in the water. Now, when you contribute to an HSA you lock that money into one use and one use only. It can not be rolled over into any other type of account.

If you just create a high interest savings account and make deposits into that account the same way you would into an HSA, you'll have access to your money for any reason, you'll be making money and if you do use the money for medical expenses it is tax deductible. You will get the taxes back at the end of the year, which you can put back into your savings account and have the security you get with an HSA with the flexibility of having a normal savings account.

This is what I do and I haven't touched my savings account for years and I'm making 5.75% interest. I don't think that rate is available now, though. I found several at 4.25%. When I get laid off again (because this is aviation and we all get laid off several times in our career) my version of the HSA is available for use to pay bills with out penalty.

But, that is just my opinion.
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