From: Mark Bole 
Newsgroups: misc.invest.financial-plan
Subject: Re: converting from FSA to HSA
Date: Fri, 27 Jul 2007 16:33:03 -0500
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wyu@talisys.com wrote:

[...]
> I was making this point that it does everything an IRA does but more.
> If you use it for medical, it tax-free contributing, tax-free
> withdrawal. If you don't use it for medical during retirement, then it
> acts like an IRA. Studies show that medical is a HUGE expense during
> retirement so why would you use a HSA for non-medical and then use
> your IRA/401K for medical? Switch it around, save it for medical and
> given how people's lifespans are getting extended by medicine, it's as
> good as tax-free as long as you can avoid dipping into it for non-
> medical.
[...]

Sorry if I'm beating the proverbial dead horse here.  I'm not knocking 
HSA's, in fact I plan to start one if and when I'm no longer covered 
under an employer group plan.

I agree that the portability and accumulation aspects of HSA's are 
unique and valuable.

I'm really just trying to make two points, which I promise not to make 
again in this thread:

1) medical expenses are _already_ tax free if you handle them through 
your employer (employer contribution to group health, your share of the 
group health, and flex spending account -- all tax free).  HDHP/HSA is 
just another flavor of the same thing that has been around for a long 
time -- a flavor that is better for some and worse for others. Sole 
proprietors also get tax free self-employed health insurance deduction, 
comparable to what they could get through an employer.

2) even if you fund an HSA to the max, I think it would be dangerous to 
assume that that the same contribution does double duty, once for 
medical expenses and once for retirement.  It might work out that way if 
you know right now that you (and your family) are going to be very 
healthy for the next twenty years -- not a risk I would advise anyone to 
take.

-Mark Bole