I just recently (last 2 years) started contributing to one of these accounts. I am not currently eligible to contribute to a Roth IRA and was looking for a way to reduce my taxes and this account made sense, because in the long run I am sure I will have plenty of medical expenses.
So currently I have very little in the way of medical expenses and the little that I did I was getting reimbursed out of the HSA, but when I thought about it, that didn't really make sense. Since I can easily pay all my out of pocket expenses with cash on hand it probably makes more sense to just keep as much money in the HSA and invest and let it grow. My account has access to a whole bunch of Vanguard Admiral Class funds and my balance is now high enough that I am not getting hit with any fees.
So my question:
Am I missing anything here, it seems like since I can afford it, I should maximize my HSA contributions and also not take any reimbursement? Let the money grow as eventually I am sure to be able spend down all the tax free dollars in the account, so there is no urgency to get reimbursed now and reduce the principal in the account that can grow.
So currently I have very little in the way of medical expenses and the little that I did I was getting reimbursed out of the HSA, but when I thought about it, that didn't really make sense. Since I can easily pay all my out of pocket expenses with cash on hand it probably makes more sense to just keep as much money in the HSA and invest and let it grow. My account has access to a whole bunch of Vanguard Admiral Class funds and my balance is now high enough that I am not getting hit with any fees.
So my question:
Am I missing anything here, it seems like since I can afford it, I should maximize my HSA contributions and also not take any reimbursement? Let the money grow as eventually I am sure to be able spend down all the tax free dollars in the account, so there is no urgency to get reimbursed now and reduce the principal in the account that can grow.