Alright guyz, I know I asked a couple of years ago about HSA's but I am starting a new job soon and they offer a HDHP and HSA so lets help ben ji make sure he does everything right.
My deductible is 5k and I am a fit young single EMAW who has never had any medical issues.
I plan on contributing the max of $3,350 and basically dumping it in the closest thing they have to a S&P500 Index Fund.
My questions-
1. Doing some research it appears that conventional wisdom is to leave the HSA untouched unless you have can't pay the full deductibe out of checking/savings, correct?
For example if I get poison ivy while fishing and have to get some drugs from a doc I should pay this all out of pocket, lets say $500 (No idea if this is reasonable but lets go with it).
2. If I save the receipt I can reimburse myself the $500 tax free from my HSA at any time in the future correct?
Lets say I get poison Ivy 3 years in a row, I now have $1,500 that I can withdraw anytime from my HSA tax free if I needed it. But I won't withdraw it because that $1,500 in tax free money is earning interest and growing in my HSA.
Taking it further lets say i spend $500 out of pocket every year for 30 years. I now have 15k I can withdraw tax free to help purchase the goEMAW ranch where I give fishing tours and SD runs cattle and Emo wires up windmills for electricity etc.
Am I doing this right?