You can only rollover once from traditional IRA/401K/ROTH IRA to HSA. You'll have to be eligible for HSA at least 12 months before the rollover, this means you'll have to be on a HDHP plan for one year.
2. Advantage of HSA
a) no required minimal withdrawal; b) medical expense is paid without paying income-tax.
3. Withdrawing for non-medical reason from HSA
a) you'll have to pay income tax for non-medical withdrawal
b) if you are under 65, you'll have to pay 20% penalty for non-medical withdrawl
But if you both die, the HSA is cashed out as income to your heirs. There is no ten years period to withdrawal like IRA, the cash out of inherited HSA is immediate in that year. Your heirs could use HSA for their own medical expense FOR THAT YEAR, but that's it.
So if you have too much money in HSA, the problem would be your heir will have a huge tax bill, possible paying top rate of 37%.
Let's say you have 1 million leftover in IRA, your heirs has ten years to withdrawal, so every year they get 100K, even if they work and make $240K as a couple, taxable income at 340K is taxed only at top rate of 24%.
However, if you have 1 million leftover in HSA, your heirs has to pay income tax on $1 million the year they receives the inheritance. That's top rate of 37%.
Inheritance tax and estate tax are two different things. Inheritance tax is what the beneficiary — the person who inherited the wealth — must pay when they receive it. Estate tax is the amount that’s taken out of someone’s estate upon their death. One, both or neither could be a factor when someone dies.
HSA 是一个好东西，这儿的朋友应该是加入的多，如果没有，真是太可惜了。年底到了，不知是否还有机会参加，记得是12月1日是开放参加日子。政府限制你放线的账户，基本是好事，比如IRA退休账户。每年放入的钱虽有限制，也不要辜负政府让你享受在税务上的优惠的好意。我们可以做的就是最大化。
大家可能已经了解HSA的具体规定，但有一点我也是几年前才知道，在HSA里的钱可以像IRA 账户里的钱一样，可以投资股市，是否能投资房子不清楚。IRA 里的钱是延迟交税，Roth IRA 的钱稍微好一点，但HSA的投资本金和收益的钱拿出来用，不用交税，具体细节没有仔细研究，可能有例外。这几年用HSA 里的钱投资指数股，收益颇丰。如果65 岁参加Medicare，每月的月费，也可以从这个账户里取钱用。具体操作不难，政府先扣去，然后用HSA的钱给自己开张支票。
有一个问题，今天才知道，政府允许个人人生一次，把一定的钱从IRA账户，转到HSA账户，免罚金和税。没有彻底搞懂，但个人理解是大好事，不然政府不会给你人生一次的免税免罚金的机会。有懂税务的朋友能解释一下吗？
1. The rollover
You can only rollover once from traditional IRA/401K/ROTH IRA to HSA. You'll have to be eligible for HSA at least 12 months before the rollover, this means you'll have to be on a HDHP plan for one year.
2. Advantage of HSA
a) no required minimal withdrawal; b) medical expense is paid without paying income-tax.
3. Withdrawing for non-medical reason from HSA
a) you'll have to pay income tax for non-medical withdrawal
b) if you are under 65, you'll have to pay 20% penalty for non-medical withdrawl
c) if you are over 65, you don't pay 20% pelanty.
Your HSA passes to your surviving spouse.
But if you both die, the HSA is cashed out as income to your heirs. There is no ten years period to withdrawal like IRA, the cash out of inherited HSA is immediate in that year. Your heirs could use HSA for their own medical expense FOR THAT YEAR, but that's it.
So if you have too much money in HSA, the problem would be your heir will have a huge tax bill, possible paying top rate of 37%.
Let's say you have 1 million leftover in IRA, your heirs has ten years to withdrawal, so every year they get 100K, even if they work and make $240K as a couple, taxable income at 340K is taxed only at top rate of 24%.
However, if you have 1 million leftover in HSA, your heirs has to pay income tax on $1 million the year they receives the inheritance. That's top rate of 37%.
我觉得转到HSA主要是为了免税付一些医疗费。因为用401K付医疗费是先要付income tax的。
HSA还可以medicare premium，这一项每年也得几千元吧。HSA不能付medigap的premium。
但是不要转太多。比如看看medicare A/B/D的 premium + out of pocket maximum 每年是多少，乘上20年，65岁转一次就够了。
Inheritance tax and estate tax are two different things. Inheritance tax is what the beneficiary — the person who inherited the wealth — must pay when they receive it. Estate tax is the amount that’s taken out of someone’s estate upon their death. One, both or neither could be a factor when someone dies.
https://www.nerdwallet.com/article/taxes/inheritance-tax?
Federal has estate tax. That is, the dead person pays an estate tax on the year he/she dies. The estate tax exemption is 11 million.
There is no federal inheritance tax. There might be inheritance tax on several states. see link above.
Medicare part A (hospital stay), premium=0, deductible=1556 every time you are admitted but first 60 days are free. out of pocket maximum=no limit.
Medicare part B (medical cost), premium= 170/month for most people, higher for $114K+ single or $228K+ couple.
out of pocket maximum = no limit.
Medicare part D (drugs) = 30-50 per month, out of pocket maximum = 7050.
If you have major medical problem, the cost easily exceed $10K.