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HSA Accounts

gasherbrum1997

Anyone have any advice on how to treat HSA accounts such that their triple tax advantage is reflected?

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NotACPA

OK, "triple tax free" is just a term that I haven't heard applied previously to an HSA. There's really nothing new there.

Next, is the cash portion shown, at the HSA website, as a separate account of just part of the one investment account? How many accounts show on the HSA's statement to you?

Set up Q to mirror what the HSA shows.

BTW, SOME HSA's can be downloaded into Q. If you care to name the particular HSA institution, I can look them up.

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NotACPA

My wife has an HSA, and I'm unfamiliar with this "triple tax advantage". Please elaborate.

Also, there's 2 types of HSA accounts: those that hold cash only and those that hold investments and cash.

The former is usually set up as a Savings type account, and the latter MUST BE an investment type account.

gasherbrum1997

The triple tax advantage is due to the fact that:
1). Contributions are tax free (either pre-tax payroll deduction or take a deduction if paid with after tax dollars)
2). Income from HSA investments, if any, is tax free
3). Funds spent are tax free, provided they are for qualifying medical expenses

My particular HSA has both a "savings" and an investment element. The former is due to the fact that a $2k min. is required in the account prior to any investments. So, wondering if best to set up two accounts (one as a savings, and the other as an investment account)?

NotACPA

OK, "triple tax free" is just a term that I haven't heard applied previously to an HSA. There's really nothing new there.

Next, is the cash portion shown, at the HSA website, as a separate account of just part of the one investment account? How many accounts show on the HSA's statement to you?

Set up Q to mirror what the HSA shows.

BTW, SOME HSA's can be downloaded into Q. If you care to name the particular HSA institution, I can look them up.

evergreen.97

NotACPA: does Quicken properly handle Fidelity NetBenefits based HSA?

NotACPA

evergreen.97 said:

NotACPA: does Quicken properly handle Fidelity NetBenefits based HSA?

I can't answer that as my wife's HSA isn't with Fidelity NetBenefits.