Lifetime Planner IDEA: Add HSA Account Type as a Selectable Investment Account in LTP

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Lifetime Planner IDEA:  Add HSA Account Type (Future) as a Selectable Investment Account in LTP

CHANGE SUMMARY:

Health Savings Account (HSA) account type and related features are "under consideration" by the Quicken product team.  This IDEA post requests that the HSA account type is also selectable in Lifetime Planner.  This allows the HSA account to be used for future, major-medical "special" expenses common in retirement.


Please consider voting for this IDEA.  Scroll down to the bottom of this post to VOTE!

See and Vote on additional Lifetime Planner Enhancements Requests HERE

THE BENEFITS:

HSAs, besides being a tax-favored account type used to cover more tactical or near-term medical expenses, can also be used as a long term retirement "investment vehicle" and cover likely or known large, future medical expenses.   Reference links below provide some additional insights use of HSAs in retirement and retirement planning.  

One example:   Planning for Long-term Care using an HSA funding account.  Skilled Nursing Care "special expense"  modelled in last 2 years of life at $100k / year (in todays dollars), paid for by HSA funding account.   Image.



Other "special" expenses that might be considered: 

  • Long-term Care
  • Prescription drugs and insulin
  • Major surgeries (knee, hip replacements etc.)
  • Cosmetic and bariatric et al. surgeries not covered by insurance
  • Medicare premiums, deductibles, out of pocket
  • Other health insurance deductibles, out of pocket
  • Dental expenses
  • Prescription drugs and insulin
  • ....and it continues...

THE CHANGE:

1.  Add HSA account type as a selectable investment / savings account in Lifetime Planner.  HSAs can have two account components, a traditional investment and/or a traditional savings from which to pay for qualified medical expenses.  If separate then both accounts should be a selectable option in LTP.

2.   Ensure HSA account type tax treatments and penalties are modelled in LTP.  The user may elect to apply HSA funds to a medical expense or to a general retirement "special" expense.  Distinguish between the two using category tax lines.  Apply the appropriate tax and penalties, if not used for qualified medical expenses.

3.   Ensure HSA accounts can be selected to cover "special" one-time or multi-year expenses.   Currently, in LTP, adding "special" expenses allow the user to select specific investment accounts to be applied to this expense category.  NOTE:  IRAs and 401K plans, while listed as a funding account, do not work correctly.  See IDEA Post below.

4.   Ensure that HSA accounts are included in the "order of withdrawal" strategy, current or future,  employed in LTP.   Ensure that HSA funds not applied against the plans "Special" expenses be appropriately taxed upon application to general retirement living expenses. Similar to #2.  See IDEA Post below.

5.   Breakout HSA accounts in Plan Results tables: Portfolio Value, Expense Summary and Income Summary sections, as appropriate.   Apply breakouts to any other current and future LTP reporting feature.

6.   Make provisions for individual owned accounts (like IRAs) and individual vs. family coverage.

7.    Document feature, assumptions and "how it works" in HELP.

8.    Communicate this change in LTP through release notes.


RELATED IDEA POSTS:

Add HSA Account Type and Features

Improve Account Assign for Special, College, Home Expenses

Change Account Order of Withdrawal Sequence

REFERENCES:

Investopedia - HSA's for Retirement Planning

Kitces - HSA for Retiree Medical Expenses


Please consider voting for this IDEA, below!

See and Vote on additional Lifetime Planner Enhancements Requests HERE

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