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Old 02-12-2008, 10:25 AM
  #10  
Busboy
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Joined APC: Aug 2006
Position: leaning to the left
Posts: 4,184
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Originally Posted by wildcat1 View Post
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.
A scam?

Well, my opinion is:

An HCSA is a no brainer. NO taxes trumps a high interest savings account probably about 100% of the time. Just go over your previous year's expenses to come up with a fairly accurate estimate, for your yearly contribution.

Sure, you can just deduct medical expenses on your tax return. That is, anything exceeding 7.5% of your AGI. If you've reached that point, you've most likely gone over the $5650/family HSA limit, anyway.($3000 @ FDX)

Of course, if you're single with no kids, and never go to a doctor, dentist, chiropractor, or need glasses, aspirin, bandaids or cough syrup...You might not be able to take advantage of it. But, if your anyone else, it's the opposite of a scam.

And, for our senior(age) pilots...It can be used for wheelchairs, hearing aids, support hose and learning disabilities. The last of which, may come in handy for that glass cockpit transition.
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