Financial Experts say...

[VikeManDan]

This is an interesting topic.

I know what I have in cash savings accounts and I just looked at my 401k (I'm 28, 29 in Sept.). I need to find out the value of my HSA. 

[ramssuperbowl99]

6 minutes ago, VikeManDan said:

I understand the bolded, even if I didn't indicate that in my first post. 

Sounds like after the age of 65 you would only pay income tax if you needed to withdraw the money for a non-medical expense. Given you're hopefully retired you would be in a lower-income bracket if you needed to withdraw. 

"Example. Bill, age 66, wants to take money out of his HSA to pay for general retirement expenses (not qualified medical expenses). Bill will not have to pay the 20% penalty for non-eligible HSA withdrawals because he is over the age 65, but he will be subject to income taxes on the distribution. If instead Bill uses his HSA for a qualified medical expense he can use the funds taxfree and penalty-free."

Source: https://www.smu.edu/-/media/Site/BusinessFinance/HR/pdf/Benefits/HSA--Medicare.ashx?la=en

What would be the reason to roll into the tIRA?

Because you can withdraw from the tIRA without the 20% penalty. You just pay income tax on it like you would for any tax-deferred account. 

So if you have expenses, use the HSA to avoid taxes. If you don't, roll it over and withdraw.

[JaguarCrazy2832]

Wait so the money you put into the HSA account and spend on non-medical expenses(essentially anything) isn't penalized assuming you are over 65 years old?

[ramssuperbowl99]

11 hours ago, JaguarCrazy2832 said:

Wait so the money you put into the HSA account and spend on non-medical expenses(essentially anything) isn't penalized assuming you are over 65 years old?

Correct, it's rolled into an IRA. So worst case scenario it takes your yearly IRA limit from $5,500 to $9,000.

[pwny]

One caveat to the HSA max out is that if your employer matches your retirement plan but not your HSA, you should only be using an HSA as a retirement plan *after* you max out the company match.

[JaguarCrazy2832]

On 5/31/2018 at 5:03 PM, iPwn said:

One caveat to the HSA max out is that if your employer matches your retirement plan but not your HSA, you should only be using an HSA as a retirement plan *after* you max out the company match.

Yea i make sure to get the full employer match for both. Crazy how some people dont  take advantage 

[MOSteelers56]

I know this isn’t really the correct thread but I’ll ask anyway.

I have a Roth IRA through Edward Jones. I’m very concerned about the direction the economy is headed. What should I do? I would talk to my advisor but what’s he going to say? “Keep your money here, nothing will happen. It’s safe with Eddy J.” 

If another recession hits my money is toast, no? I’m 28 and have been paying in on this for 4 years. I don’t have a bunch saved but it would hurt to lose it.

[Cheesehawk]

$75,000 saved by 35 is ludicrous unless you are making great money. I may be there soon though as I bought a house last year and since then it looks like Apple is building a facility here, Amazon may be on the way, and the Army has a big announcement regarding the Future Command Post coming soon. I expect the value of my house to increase by nearly 50% over the next 5 years. 

[Heimdallr]

11 minutes ago, MOSteelers56 said:

I know this isn’t really the correct thread but I’ll ask anyway.

I have a Roth IRA through Edward Jones. I’m very concerned about the direction the economy is headed. What should I do? I would talk to my advisor but what’s he going to say? “Keep your money here, nothing will happen. It’s safe with Eddy J.” 

If another recession hits my money is toast, no? I’m 28 and have been paying in on this for 4 years. I don’t have a bunch saved but it would hurt to lose it.

In an IRA at your age, a recession won't hurt you at all. In fact it'll help in the long run because you'll be buying cheap. It'll all come back eventually.

A recession only hurts if you are near retirement age and will need to access that money before everything rebounds. 

[cddolphin]

5 hours ago, MOSteelers56 said:

I know this isn’t really the correct thread but I’ll ask anyway.

I have a Roth IRA through Edward Jones. I’m very concerned about the direction the economy is headed. What should I do? I would talk to my advisor but what’s he going to say? “Keep your money here, nothing will happen. It’s safe with Eddy J.” 

If another recession hits my money is toast, no? I’m 28 and have been paying in on this for 4 years. I don’t have a bunch saved but it would hurt to lose it.

Just my $0.02

If you're 28 you won't be cashing in that IRA for another 35+ years. Why concern yourself over a dip that may last 5 years?

Look at it another way: during the 2007 recession, there were 28-year olds that were asking "Should I touch my IRA?" because the economy was starting to tank. If they were short-sighted enough to touch their funds, they're now 39 years old and NOT enjoying all-time highs which they bought cheap.

 

Just google what the DOW/NASDAQ/S&P 500 has done over the past several decades. Look at the general trend, and how long any dips have lasted.

 

Rest easy: if the market every truly crashes, we'll all be screwed well beyond our retirement accounts

[MOSteelers56]

Thanks @cddolphin and @Heimdallr for making me rest easier.

[JaguarCrazy2832]

On 5/31/2018 at 5:03 PM, iPwn said:

One caveat to the HSA max out is that if your employer matches your retirement plan but not your HSA, you should only be using an HSA as a retirement plan *after* you max out the company match.

Yea I max out my company match and then put an extra 10% in plus a little extra into HSA on the side. Sadly i've been using all that HSA money buts still tax free savings at least

[ramssuperbowl99]

3 hours ago, JaguarCrazy2832 said:

Yea I max out my company match and then put an extra 10% in plus a little extra into HSA on the side. Sadly i've been using all that HSA money buts still tax free savings at least

Yeah man that will help you out at tax time. Been mentioning it at work to people that are having kids and maxing out their OOP healthcare. Saves them like $1.5k in taxes even if you just use cash.

[JaguarCrazy2832]

8 hours ago, ramssuperbowl99 said:

Yeah man that will help you out at tax time. Been mentioning it at work to people that are having kids and maxing out their OOP healthcare. Saves them like $1.5k in taxes even if you just use cash.

Yea i think i only had like $300 used for my last tax return but it saved me a small % of that and it was tax free anyways so thats always nice. Nice every paycheck takes a chunk out and goes there.

[UKTexans]

Someone sent the below to me today.

not my words.... I remembered this from my trading training.  share buybacks is a key signal of end of business cycle:

 

Excessive debt may have dire consequences

The buyback spree that we’ve seen recently has led companies to go beyond their cash flows. As a result, companies have been using debt to finance expenditures. With cheap money available, US companies’ borrowing rates have surpassed their earnings rates. Companies such as Apple (AAPL), Prudential Financial (PRU), and IBM (IBM) have been the frontrunners in the share buyback race.

 

This phenomenon, as Barclays’ Jonathan Glionna has observed, is very typical of the end of a cycle. During this stage, one tends to see financing conditions tightening for companies that have been relying on debt (BND) to finance their expenditures and buybacks to drive up earnings. The excessive debt taken on by US corporations is sure to affect economic growth and prosperity.

 

Does this mean we’re heading toward a recession? Let’s find out.