Why I Regret Choosing an HSA
The HSA (Health Savings Account) is often talked about as being the ultimate retirement account due to its unique tax advantages. It’s true that HSAs combine the best of both worlds of the traditional and Roth style retirement accounts (IRAs, 401(k)s, and 403(b)s.) The long-term growth potential was so compelling for me, I couldn’t resist and signed up for an HSA–which necessarily meant signing up for a high deductible health plan (HDHP).
Especially in the financial independence community, I see lots of folks talking about how awesome HSAs are. I agree the HSA’s tax benefits are unparalleled, but I feel that the intangible costs, even for young healthy people, of having an HDHP are often underrepresented, especially since signing up for an HDHP is required in order to open and contribute to an HSA. In this video, I’d like to share my experience with having an HDHP and HSA in the hopes that it helps you consider your choice of healthcare plan and associated tax-favored account more holistically.
Details from the IRS on Health Savings Accounts (HSAs):
https://www.irs.gov/pub/irs-pdf/p969.pdf
(this is where the screenshot at 1:04 is from)
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This video is for entertainment purposes only and reflects my personal opinions based on my own situation, life experiences, and research. The information provided should not be considered professional tax, legal, or financial advice. Always consult with qualified professionals for such advice and so that your specific situation can be taken into account, and make sure to do your own research. I hope you enjoy this video, and thank you for watching!