How you’ll use your HSA to pay off your medical debt depends on when you incurred your medical costs and opened your account. To see if your expense qualifies for direct payment from your HSA, look for the date of service (not the bill date) on your medical bill. If that date is after you’ve opened your account, you can use your HSA debit card or submit the payment for reimbursement.
In the event you and a spouse decide to divorce, a sizable HSA account balance becomes an important part of the negotiation for how best to divide your assets.
Here are a few things to consider when deciding how to divide an HSA in a divorce:
If you’re interested in using your HSA to fund future health care costs, investing your money in stocks and bonds will likely produce bigger returns for you decades from now. Sure, with stocks there will definitely be periods when your account value will decline. But if you don’t intend to use the money for at least 10 years, investing it in stocks and bonds will likely produce higher returns than keeping it in a low-yielding cash bank account or money market mutual fund.
On May 10, 2021, the Internal Revenue Service announced the 2022 HSA contribution limits. For 2022, HSA-eligible account holders are allowed to contribute $3,650 for individual coverage and $7,300 for family coverage. Both coverage levels are a $50 increase for individuals and $100 for families from 2021 HSA contribution limits. If you are 55 years or older, you’re still eligible to contribute an extra $1,000 catch-up contribution.
We are excited to share with you, that Lively is now the #1 rated HSA Provider on HSASearch.com (A Devenir company). We want to thank the many customers who took the time to review our HSA offering and give us such a high rating.
Want to use pre-tax dollars for healthcare expenses? If you don’t have a high deductible health insurance plan and want to set aside pre-tax dollars for healthcare expenses, a Flexible Spending Account (FSA) may be just what you’re looking for.