How much should I fund in my HSA account?

[airlyss]

Hi everyone, I've been lurking around here long enough, so I thought I'd finally ask something for the first time!

I am a relatively healthy (knock on wood) and new working professional with high-deductible insurance and about $400 in my HSA. The max-deductible for my insurance plan is $1500 annually. I'm just wondering how much I should fund in my HSA account, without going overboard. Intuitively, it'd make sense to fund it up to my deductible of $1500 and delay more contributions until I use some, but are there other theories on the optimal amount?

Any thoughts are welcome!

[claudius753]

My employer offers a match up to a certain dollar amount on anything I put in my HSA, do you know if your employer offers a match and to what amount?

There's nothing like free money, I always say, so the first year I funded mine to the maximum that the employer would match. That more than took care of the deductible, so now I don't contribute any, until I use up the deductible.

Does anyone else think it would be a good idea to continue to fund an HSA to the maximum amount for the 'free' money that an employer matches? An HSA is yours forever, so that could be there to use later in life when medical expenses may be higher.

[getrichslow]

Take the free money. If you do not use the HSA dollars for healthcare you can use it for anything once you reach retirement age. I assume your employers plan will let you invest in mutual funds once you have a certain balance.

[maat55]

Are you sure that 1500 qualifies for an hsa? Unless they have changed, I thought you had to have a high deductable. 1500 seems standard. I'm probably wrong but interested in knowing. In your case I would say 5000. Might as well contribute equal to the match, it's just like a ira anyway, as long as the money can be invested in MF's.

[loulou]

Assuming you are appropriately funding your retirement, I would consider contributing up to the max. ($2900 for singles, $5800 for families for 2008) There are several places where the money in your HSA can be put into the market.

[disneysteve]

Assuming you are appropriately funding your retirement, I would consider contributing up to the max. ($2900 for singles, $5800 for families for 2008) There are several places where the money in your HSA can be put into the market.

I agree. Retirement first, then HSA. Take full advantage of any tax-free or tax-deferred accounts that you can.