Health Savings Account: Don’t Forget About It
After getting through my first day of work, I spent some time dealing with insurance. This reminded me that I still had an active health savings account from my previous company. Can’t forget my hard earned money, right?
Fees Stinkin’ Fees
After retrieving my username and password, I logged into my HSA account and saw the carnage. Earlier in the year, I cut over to my wife’s health insurance. My account was still active, but it was no longer being funded. I had a small balance, but I had forgotten that there was a monthly maintenance fee. I quickly closed my account and am waiting for my final check.
Final Thoughts
We all work hard for our money and hopefully we are making our money work for us. But with numerous job changes and moves throughout our life, we are bound to have more than a handful of checking, savings, investment, and retirement accounts. Do you have all your accounts in order? If not, spend some time to take an inventory. Consolidate accounts if possible. Close accounts that are inactive and shrinking from maintenance fees. Make sure you don’t forget about your hard earned money stored in accounts you may have forgotten about long ago.
Stay Inspired!
Buck
HSA and FSA accounts should be checked for balances in December to clear it out by year end.
Excellent reminder KC!
Slightly OT – but I got married in August, so my HSA limit doubled (and my monthly contributions more than tripled). It was pretty funny to figure out my new exemptions and still have a ‘take-home pay cut’ with the HSA contributions.
My taxes are going to be a mess this year…
I feel your pain. Sometimes the system doesn’t make any sense at all. Guess we all just have to find other income streams to offset our taxes!
Good move Buck! One reason I hate anything with a recurring maintenance fee.
Thanks MC! Maintenance fees, avoid them like the plague!
My brother had a health emergency a few years ago that set him back significantly. I believe having your own emergency fund is absolutely essential. Its amazing how quickly a visit to the ER and two nights in a hospital can put you in a debt equivalent to purchasing a new small car. Long story short, he had to file for bankruptcy and almost lost his home. I advise everyone try to stash away at least 10K to weather any unpredictable storm that arrives.
Sorry to hear about your brother. Hope he’s doing better. Great reminder for all to have an emergency fund!
Good advice. Over a lifetime, the number of accounts we have open grows enormously!
Thanks Marie. Never would have thought, but it really does!
I wonder if you could argue that since you were not funding the HSA, there was no maintenance required? Naaah, prolly a waste of time. We have 529 accounts established for our children and the default annual fee is the max, for out-of-state residents. I have to contact them manually to request a fee reversal and prove that we are residents. This happens regularly as the State changes administrators ALL THE TIME. K, rant over.
Nice suggestion. I asked about reversing them and the operator didn’t sound too open to the idea. I didn’t feel like pushing the issue. Rant away!
*HATE* maintenance fees on inactive accounts. It’s a bit like taxation for unused services, isn’t it?
Highway robbery. Don’t we live in a society? – George Costanza
Savings accounts are advantageous as a place to store money that won’t see immediate use. Savings are usually linked to checking accounts, which provides extra liquidity in case you need the money right away.Traditionally, some savings accounts carry higher interest rates than checking accounts, but rates are near historic lows right now. There many popular types of premium savings accounts that earn higher rates of interest. Investment and Money Market accounts earn the best rates, and they always exceed standard savings accounts, often by a favor of double or more. This ties into what the minimum deposit is too.
Great points, need to shop around for the best accounts. Thanks Kathleen!