[OneSolution]

My employer covers me free for my medical insurance. For my dependent , I need to pay 60/week

Name of insurance is Blue cross shield, Texas

Since two years, I had no claims on my insurance and didn't visit the doctor.

I am on H1 Visa and my wife on H4 dependent.

My question is:
-Is it advisable to put some money aside in HSA?

-How does HSA investment work.. Is it like in HSA you get option to invest money in Mutual funds?

- In case, I got back to my country- India after few years... Can I claim my HSA Balance? Do I pay tax?

-- Does HSA investment plan give you a good returns or just some small rate of returns/?

Thanks


Any comments please


Hello can anyone help

[nikosmom]

Let's start here: Does your medical policy have a high deductible? HSA's must be used in conjunction with high deductible plans.

If you do have a plan with a high deductible, then an HSA is a tax exempt way to save for medical expenses (it's tax exempt because the money was paid with after-tax funds). However, if the money is not withdrawn for medical purposes, it is taxable.

Since the HSA is considered a trust, you do not have the option to invest it in Mutual Funds. The interest is compounded daily but applied to the HSA on a monthly basis. Accounts with higher balances earn higher interest.

[jef1056]

First, To be eligible to open an HSA the insurance plan has to be a HSA qualified, high deductible health plan. Not every high deductible plan will meet the IRS guidelines for an HSA.
Secondly, Money deposited into a qualified HSA is PRE TAX. It is not taxed either going in or coming out as long as it is used for allowed medical expenses. Using the HSA for non medical expenses will result in taxes and PENALTIES.
Once you have a balance over the minimum required by the HSA bank you have chosen, there are several investment options allowed. Mutual Funds being one of the options.

[OneSolution]

In case, I got back to my country- India after few years... Can I claim my HSA Balance? Do I pay tax and penalties?

[jef1056]

That's a tax question not a "health insurance" question.