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Best Health Savings Account Plans Question & Answers

2014 December 14
by Sarah Fields

Linda asks…

What’s the best finanical advice for a single 27 year old male?

Im living on my own. Have my own car (co-signed), a good job, but need to manage money and budget for my plethora of bills.

Any suggestions? I also have a 401k. Should I open a savings account at a credit union too?

Sarah Fields answers:

Ok you are in better shape than you think — on the pro side you work for a company that has both a credit union and a 401 plan — first we max out your amount to the 401k — then you open up a credit union savings account — that is where you get you next car loan so start saving for the down payment; next put all of you bills in order of highest interest on top — make the minimum on all bills and pay the highest off and put the cc in a drawer — if you smoke quit — bad for health and will be soon outlawed except for your own home or car — use the money to pay bills — if you do these few things in a year or so you will be asking i have xxk in savings what can i do with it –good luck!!!

George asks…

Best way to move money between two HSAs?

I have two health savings accounts. What is the best way to transfer money from one HSA to another on a regular basis? Can I just write a check from one HSA and deposit it into the second HSA? Is there a limit to how often I can do this? I want to make sure that I am not taxed or penalized.

Sarah Fields answers:

Do NOT write a check.

If you write a check, to the computer you appear to have a) a taxable distribution subject to a 20% penalty and b) an excess contribution to the second account subject to a 6% excise tax per year.

You MUST do a trustee to trustee transfer. Contact the administrators of the plan you want to move the money to. Use the word ROLLOVER in every contact.

Richard asks…

What if I did not receive a 1099-SA form for my Health Savings account? All funds where put in by employer?

I had to enter W in the box 12b and then entered the amount, but I never received the form 1099-SA. What do I need to do?

Sarah Fields answers:

If you were required to receive a 1099-SA, then you should contact the plan administrator and inquire.

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