The Lively HSA

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ochotona
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Re: The Lively HSA

Post by ochotona » Sat Oct 27, 2018 8:09 pm

So if I have an HDHP, can't I contribute to my Lively HSA by myself, report on Form 8889, enter amount on Form 1040 Line 25, and have my AGI reduced by $8000 for 2019? I am old enough to do the catch-up.
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Re: The Lively HSA

Post by Xan » Sat Oct 27, 2018 8:30 pm

ochotona wrote:
Sat Oct 27, 2018 8:09 pm
So if I have an HDHP, can't I contribute to my Lively HSA by myself, report on Form 8889, enter amount on Form 1040 Line 25, and have my AGI reduced by $8000 for 2019? I am old enough to do the catch-up.
That's how I've always done it. I didn't know there was another way, actually.
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Re: The Lively HSA

Post by ochotona » Sat Oct 27, 2018 9:35 pm

Xan wrote:
Sat Oct 27, 2018 8:30 pm
ochotona wrote:
Sat Oct 27, 2018 8:09 pm
So if I have an HDHP, can't I contribute to my Lively HSA by myself, report on Form 8889, enter amount on Form 1040 Line 25, and have my AGI reduced by $8000 for 2019? I am old enough to do the catch-up.
That's how I've always done it. I didn't know there was another way, actually.
Good. The other way is employer payroll deduction, which then reduces the FICA bite. If my health plan is as below, then I'll refuse the FSA, and do my own HSA:

2019:

HDHP Minimum Deductibles. The 2019 minimum annual deductible is $2,700 for family HDHP coverage.

HDHP Out-of-Pocket Maximums. The 2019 limit on out-of-pocket expenses (including items such as deductibles, copayments, and coinsurance, but not premiums) is $13,500 for family HDHP coverage.
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sophie
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Re: The Lively HSA

Post by sophie » Sun Oct 28, 2018 8:39 am

That's exactly right, ocho.

Since you already have a Lively HSA, this is very easy for you. Sounds like you might benefit from an employer-provided HSA, but I'm sure that's not free. Between the issues that foglifter described and the costs to your employer which would increase your overhead and effectively reduce your pay, an employer-sponsored HSA may not be in your best interests.

Also FSAs are evil. You have to guess your medical expenses in advance, and if you overestimate, you could stand to lose the balance at the end of the year.
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Re: The Lively HSA

Post by foglifter » Sun Oct 28, 2018 4:46 pm

It's important to remember that, like with IRAs, one can have multiple HSA accounts. I consider my Lively HSA as my "main" account and I only use the employer-provided HSA as a temporary location to move payroll contributions in a tax-friendly manner. The money in the employer account usually earns zilch, so I do partial transfers to Lively twice a year.

Another example when an employer HSA might make sense (even with fees): receiving employer contributions. Starting next year my new-old employer (we've just merged) will contribute 2K annually into the HSA (for family coverage). The only way to get these contributions is the employer HSA.

I heard that some employers offer an option to direct pre-tax payroll contributions into a non-employer-provided account, however it's rare. It would be awesome to contribute to Lively directly, but my employer said they could do that only as post-tax deductions (which defeats the key point of using an employer HSA).
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Re: The Lively HSA

Post by ochotona » Tue Dec 11, 2018 10:22 am

EARTH SHATTERING NEWS

Fidelity has an HSA offering. I just talked to them. No account maintenance fees of any kind. I think this will put Lively out of business.
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Re: The Lively HSA

Post by pugchief » Tue Dec 11, 2018 10:28 am

ochotona wrote:
Tue Dec 11, 2018 10:22 am
EARTH SHATTERING NEWS

Fidelity has an HSA offering. I just talked to them. No account maintenance fees of any kind. I think this will put Lively out of business.
Doubtful. Lively was such a huge improvement over all of the previous offerings, yet none of them have gone out of business.

It's just like all the mutual funds with high fees. There will always be people willing (or forced) to pay the higher fees for some inexplicable reason.
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Re: The Lively HSA

Post by ochotona » Tue Dec 11, 2018 10:50 am

pugchief wrote:
Tue Dec 11, 2018 10:28 am
ochotona wrote:
Tue Dec 11, 2018 10:22 am
EARTH SHATTERING NEWS

Fidelity has an HSA offering. I just talked to them. No account maintenance fees of any kind. I think this will put Lively out of business.
Doubtful. Lively was such a huge improvement over all of the previous offerings, yet none of them have gone out of business.

It's just like all the mutual funds with high fees. There will always be people willing (or forced) to pay the higher fees for some inexplicable reason.
Understood, but Lively is a new VC funded start-up, they might just melt under the heat. I want to consolidate to Fidelity, personally, Lively is my only use of TD Ameritrade.
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Re: The Lively HSA

Post by pugchief » Tue Dec 11, 2018 1:38 pm

ochotona wrote:
Tue Dec 11, 2018 10:50 am
pugchief wrote:
Tue Dec 11, 2018 10:28 am
ochotona wrote:
Tue Dec 11, 2018 10:22 am
EARTH SHATTERING NEWS

Fidelity has an HSA offering. I just talked to them. No account maintenance fees of any kind. I think this will put Lively out of business.
Doubtful. Lively was such a huge improvement over all of the previous offerings, yet none of them have gone out of business.

It's just like all the mutual funds with high fees. There will always be people willing (or forced) to pay the higher fees for some inexplicable reason.
Understood, but Lively is a new VC funded start-up, they might just melt under the heat. I want to consolidate to Fidelity, personally, Lively is my only use of TD Ameritrade.
I agree, TD Ameritrade became a big disappointment after changing their list of commission-free ETFs recently.
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Re: The Lively HSA

Post by foglifter » Tue Dec 11, 2018 2:57 pm

There's a long thread on Fidelity HSA on BH forum:
https://www.bogleheads.org/forum/viewto ... &start=500

Sounds like the exodus from Lively, HSA Bank and other custodians is under way. Annoying part is lack of consistency in the responses people receive from different Fido reps regarding the ability of in-kind transfers from TDA and TDA account closure fee reimbursement. I'm waiting for 1-year anniversary of my Lively account to start the transfer process.

I think Lively could still compete for employer-sponsored accounts.
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Re: The Lively HSA

Post by pugchief » Tue Dec 11, 2018 4:12 pm

foglifter wrote:
Tue Dec 11, 2018 2:57 pm
I'm waiting for 1-year anniversary of my Lively account to start the transfer process.
Is there any particular reason for the wait?
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foglifter
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Re: The Lively HSA

Post by foglifter » Tue Dec 11, 2018 6:35 pm

pugchief wrote:
Tue Dec 11, 2018 4:12 pm
foglifter wrote:
Tue Dec 11, 2018 2:57 pm
I'm waiting for 1-year anniversary of my Lively account to start the transfer process.
Is there any particular reason for the wait?
Lively charges $25 closing fee if the account was opened less than a year ago.
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
- Talmud
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