1 00:00:40,159 --> 00:00:46,029 Suze: March 3rd, 2024. Welcome everybody to the Women and Money podcast. 2 00:00:46,040 --> 00:00:50,130 Suze: As well as everybody smart enough to listen, Suze O, 3 00:00:50,139 --> 00:00:55,360 Suze: here and in just a few hours, Miss Travis and 4 00:00:55,369 --> 00:00:59,259 Suze: I will be on our way to the airport to 5 00:00:59,270 --> 00:01:04,930 Suze: make our way on a 15, almost 16 hour flight 6 00:01:05,480 --> 00:01:10,480 Suze: to Dubai. From Dubai, we drive to Abu Dhabi, which 7 00:01:10,489 --> 00:01:14,209 Suze: is about an hour drive and then we start our 8 00:01:14,220 --> 00:01:18,899 Suze: adventure for the next three or four days. So I 9 00:01:18,910 --> 00:01:22,000 Suze: have to tell you, I'm actually now at the point 10 00:01:22,010 --> 00:01:26,379 Suze: where I'm really, really excited, I'm excited to meet all 11 00:01:26,389 --> 00:01:30,930 Suze: of the extraordinary women that will be there. It combines 12 00:01:30,940 --> 00:01:33,580 Suze: two groups. The event I'm going to, 13 00:01:33,919 --> 00:01:38,440 Suze: the 30 under 30 which happens to be 30 women 14 00:01:38,449 --> 00:01:42,260 Suze: who are under 30 that are changing this world 15 00:01:43,080 --> 00:01:49,300 Suze: and the 50 over 50 women, that I'm part of, that are 16 00:01:49,309 --> 00:01:54,199 Suze: changing this world. And together we talk and we mentor 17 00:01:54,209 --> 00:01:57,980 Suze: each other and I personally look forward to learning from 18 00:01:57,989 --> 00:02:01,120 Suze: the 30 under 30 as to all the things that 19 00:02:01,129 --> 00:02:06,000 Suze: they're doing online and these incredible companies that they've established 20 00:02:06,279 --> 00:02:11,020 Suze: and I'm really, really looking forward to it. I'm over 21 00:02:11,029 --> 00:02:11,859 Suze: my fear. 22 00:02:12,490 --> 00:02:15,288 Suze: I have become the warrior that I was born to 23 00:02:15,300 --> 00:02:19,990 Suze: be and I will take my place on that stage 24 00:02:20,169 --> 00:02:24,630 Suze: and I will be once again one of the foremost 25 00:02:24,639 --> 00:02:30,630 Suze: speakers to have been born. That's how I think about it, 26 00:02:31,029 --> 00:02:34,350 Suze: but today happens to be Suze School. 27 00:02:34,979 --> 00:02:38,320 Suze: And so a few things that I want to say 28 00:02:38,330 --> 00:02:42,500 Suze: before I even begin Suze School. However, number one, let's 29 00:02:42,508 --> 00:02:45,520 Suze: talk about Alliant Credit Union and the rates on their 30 00:02:45,529 --> 00:02:50,919 Suze: certificates of deposits. Now, I know I told you that 31 00:02:50,929 --> 00:02:54,619 Suze: the rates on the 12 to 17 month certificate of 32 00:02:54,630 --> 00:02:57,320 Suze: deposit is not going to go down or at least 33 00:02:57,330 --> 00:02:58,520 Suze: not that I know of 34 00:02:58,949 --> 00:03:04,070 Suze: The rate on the 18 to 23 month certificate of 35 00:03:04,080 --> 00:03:09,660 Suze: deposit on March 1st did go down, it went down 36 00:03:09,669 --> 00:03:12,050 Suze: to 5% 37 00:03:12,830 --> 00:03:16,779 Suze: and for those amounts of $75,000 or more, it is 38 00:03:16,788 --> 00:03:22,850 Suze: at 5.05%. But that is why I've been telling all 39 00:03:22,860 --> 00:03:27,609 Suze: of you take advantage of the 12 to 17 month 40 00:03:27,619 --> 00:03:31,209 Suze: certificate of deposit at Alliant Credit Union 41 00:03:31,538 --> 00:03:36,520 Suze: where when you apply for it, go for 17 months 42 00:03:36,949 --> 00:03:41,860 Suze: because it's actually 17 months and 30 days and your 43 00:03:41,869 --> 00:03:49,080 Suze: rate would be 5.4% or for amounts of $75,000 or more. 44 00:03:49,139 --> 00:03:56,119 Suze: It would be 5.45% and that's 0.4% more 45 00:03:56,839 --> 00:04:01,130 Suze: than what you would get if you did an 18 46 00:04:01,139 --> 00:04:06,699 Suze: month certificate of deposit. So therefore, if you're interested, go 47 00:04:06,710 --> 00:04:15,220 Suze: to my, my Alliant alliant.com and take advantage of the 48 00:04:15,229 --> 00:04:18,579 Suze: 12 to 17 month. Again, you have to tell them 49 00:04:18,589 --> 00:04:21,220 Suze: if it's more than 12 months, you have to talk 50 00:04:21,230 --> 00:04:22,140 Suze: to them about it. 51 00:04:22,450 --> 00:04:26,720 Suze: But take advantage of that while those rates are still 52 00:04:26,738 --> 00:04:28,109 Suze: in effect. 53 00:04:29,160 --> 00:04:30,029 Suze: Next 54 00:04:30,769 --> 00:04:35,308 Suze: a while ago, I think it was January 7th. I 55 00:04:35,320 --> 00:04:39,488 Suze: went on this podcast and I gave all of you 56 00:04:39,500 --> 00:04:43,789 Suze: seven exchange traded funds that I would buy that day, 57 00:04:44,480 --> 00:04:47,309 Suze: that day. Actually, that next day, Monday, 58 00:04:48,359 --> 00:04:52,529 Suze: if all I had was $1000 to invest, because that 59 00:04:52,540 --> 00:04:55,599 Suze: was the question I was asked about. If I had 60 00:04:55,609 --> 00:05:00,709 Suze: $1000 to invest, what would I buy? And I said 61 00:05:00,720 --> 00:05:03,500 Suze: I would buy one share of this, one share of that, 62 00:05:03,510 --> 00:05:05,730 Suze: one share of that. I give you the exact prices, 63 00:05:05,738 --> 00:05:13,159 Suze: everything and it totaled exactly $1000 for those seven exchange 64 00:05:13,170 --> 00:05:14,260 Suze: traded funds. 65 00:05:14,928 --> 00:05:19,279 Suze: The other day I posted on the Women and Money app. 66 00:05:19,290 --> 00:05:22,089 Suze: And if you don't have the Women and Money app, 67 00:05:22,100 --> 00:05:27,279 Suze: you are seriously missing out. You should download it on 68 00:05:27,290 --> 00:05:30,970 Suze: Apple Apps or Google Play. It is free. Because it 69 00:05:30,980 --> 00:05:32,630 Suze: is on that app 70 00:05:33,130 --> 00:05:37,690 Suze: that I really do communicate at least on Sundays. Not 71 00:05:37,700 --> 00:05:42,070 Suze: today though, not next Sunday, but after I've done a podcast. 72 00:05:42,079 --> 00:05:44,890 Suze: I go there and I look at what people are saying, 73 00:05:45,089 --> 00:05:48,979 Suze: the ones that get up, they listen to the podcast early, 74 00:05:48,988 --> 00:05:51,989 Suze: they have questions and I tend to answer them 75 00:05:52,899 --> 00:05:57,909 Suze: and I do all kinds of things on the community app. 76 00:05:57,920 --> 00:06:01,970 Suze: I share personal footage of the island or what I'm 77 00:06:01,980 --> 00:06:05,440 Suze: doing my chickens, but things that I really don't do 78 00:06:05,450 --> 00:06:07,320 Suze: anywhere else. 79 00:06:07,959 --> 00:06:13,839 Suze: But the other day I posted the actual returns, those 80 00:06:13,850 --> 00:06:18,779 Suze: seven ETFs have given us over the past almost two 81 00:06:18,790 --> 00:06:22,578 Suze: months and they've all done really, really well, you can 82 00:06:22,589 --> 00:06:25,099 Suze: go on the community app and take a look at them. 83 00:06:25,480 --> 00:06:28,659 Suze: But many people at that time said, wait, wait, I 84 00:06:28,670 --> 00:06:31,380 Suze: didn't listen, I didn't do it. Is it too late? 85 00:06:31,390 --> 00:06:33,700 Suze: What should I do now? What do you think, Suze 86 00:06:33,709 --> 00:06:34,980 Suze: da da da? No, 87 00:06:35,579 --> 00:06:40,540 Suze: when I say something on the podcast and I say 88 00:06:40,549 --> 00:06:43,690 Suze: it on a specific date, which is why I start 89 00:06:43,700 --> 00:06:49,238 Suze: every single podcast with the date that I am saying something. 90 00:06:49,570 --> 00:06:52,359 Suze: I mean it for that date, 91 00:06:53,029 --> 00:06:56,678 Suze: I don't mean it for six months from now, one 92 00:06:56,690 --> 00:07:01,970 Suze: year from now necessarily. I meant it for them because 93 00:07:01,980 --> 00:07:05,609 Suze: with these markets a lot can happen in a very 94 00:07:05,619 --> 00:07:10,489 Suze: short period of time. So I just wanna say that 95 00:07:10,500 --> 00:07:11,649 Suze: to all of you 96 00:07:13,420 --> 00:07:18,450 Suze: In the past recently, you have heard me mention HSAs 97 00:07:20,089 --> 00:07:24,309 Suze: and HSA is a health savings account. 98 00:07:25,119 --> 00:07:28,339 Suze: And many of you have heard me say it's one 99 00:07:28,350 --> 00:07:30,709 Suze: of the best retirement accounts out there 100 00:07:31,480 --> 00:07:33,940 Suze: and now you're confused because it's like Suze, I thought 101 00:07:33,950 --> 00:07:36,500 Suze: it's a health savings account. So, how does a health 102 00:07:36,510 --> 00:07:39,239 Suze: savings account, what does that have to do with a 103 00:07:39,250 --> 00:07:43,190 Suze: retirement account? And then you're writing me all of these 104 00:07:43,200 --> 00:07:47,970 Suze: questions and all of these emails. And henceforth, we are 105 00:07:47,980 --> 00:07:54,600 Suze: going to Suze School on HSAs. So, you really need 106 00:07:54,609 --> 00:07:59,529 Suze: to get out your Suze notebook. I'll give you a 107 00:07:59,540 --> 00:08:00,940 Suze: second to do that. 108 00:08:02,119 --> 00:08:06,339 Suze: Ok. All right. So wonder did I pack the right clothes? 109 00:08:06,989 --> 00:08:09,359 Suze: I hope so. At first I thought it was gonna 110 00:08:09,369 --> 00:08:11,260 Suze: be hot there and now I hear it's gonna be 111 00:08:11,269 --> 00:08:14,690 Suze: kind of cool and it's like, oh, ok. We'll see 112 00:08:14,700 --> 00:08:18,209 Suze: what happens. Oh, are you back? Are you ready for this? Ok. 113 00:08:19,480 --> 00:08:23,500 Suze: At first most of you a long time ago, if 114 00:08:23,510 --> 00:08:27,459 Suze: you had health insurance plans, they were known as PPOs 115 00:08:27,709 --> 00:08:34,390 Suze: or Preferred Provider Organizations and they were fabulous. And then 116 00:08:34,400 --> 00:08:39,039 Suze: we started to have HMOs, wh were a health maintenance organizations 117 00:08:39,059 --> 00:08:42,150 Suze: that worked a little bit less efficiently in terms of 118 00:08:42,159 --> 00:08:44,479 Suze: being able to select any doctor you wanted to be 119 00:08:44,489 --> 00:08:47,239 Suze: able to, as you could with a PPO. 120 00:08:47,510 --> 00:08:50,789 Suze: And then we had something known as an EPO, which 121 00:08:50,799 --> 00:08:55,679 Suze: was an Exclusive Provider organization and all kinds of things. 122 00:08:55,690 --> 00:08:58,968 Suze: A POS which was the point of service plan and 123 00:08:58,979 --> 00:09:01,169 Suze: on and on and on 124 00:09:02,059 --> 00:09:09,039 Suze: And then emerged a new type of health insurance that 125 00:09:09,049 --> 00:09:14,880 Suze: originally in my opinion emerged for most health insurance plans, 126 00:09:14,890 --> 00:09:20,510 Suze: especially the PPOs got too expensive for employers 127 00:09:21,200 --> 00:09:27,659 Suze: to be able to fund really for their employees. So 128 00:09:27,669 --> 00:09:32,729 Suze: the next thing that emerged was something called an HDHP. 129 00:09:36,190 --> 00:09:43,848 Suze: And those four initials stand for a High Deductible Health plan. 130 00:09:44,799 --> 00:09:48,099 Suze: And a high Deductible health plan 131 00:09:48,900 --> 00:09:53,239 Suze: is where there is a very high deductible. 132 00:09:54,119 --> 00:09:57,869 Suze: So you pay a lot out of your own pocket 133 00:09:57,880 --> 00:10:00,659 Suze: before it goes into effect. 134 00:10:01,289 --> 00:10:06,669 Suze: And for a high deductible health plan, the premiums are 135 00:10:06,679 --> 00:10:11,469 Suze: usually lower than let's say on a PPO. 136 00:10:13,090 --> 00:10:16,950 Suze: You need to know that number one, number two, 137 00:10:17,799 --> 00:10:24,530 Suze: High Deductible Health Plans also come with something known as 138 00:10:24,539 --> 00:10:30,700 Suze: an HSA. A health savings account 139 00:10:31,840 --> 00:10:34,599 Suze: and the health savings account 140 00:10:35,390 --> 00:10:41,520 Suze: is an account where you get to fund it with money. 141 00:10:41,530 --> 00:10:44,689 Suze: You have never paid taxes on. 142 00:10:45,510 --> 00:10:48,650 Suze: And the reason that you get to fund it with 143 00:10:48,659 --> 00:10:52,909 Suze: money you have never paid taxes on is that is 144 00:10:52,919 --> 00:10:55,159 Suze: where the money comes from 145 00:10:55,950 --> 00:11:01,090 Suze: tax free. When you take it out to pay the 146 00:11:01,099 --> 00:11:07,729 Suze: high deductible part of the High Deductible Health plan. Did 147 00:11:07,739 --> 00:11:12,039 Suze: that make sense? So you have a high deductible Health 148 00:11:12,049 --> 00:11:16,580 Suze: plan where the premiums are a lot lower than other 149 00:11:16,590 --> 00:11:18,429 Suze: types of health plans. 150 00:11:19,190 --> 00:11:26,218 Suze: And you fund it through a health savings account and again, 151 00:11:26,229 --> 00:11:28,238 Suze: a health savings account, 152 00:11:28,940 --> 00:11:33,200 Suze: you fund with money you have never paid taxes on. 153 00:11:33,820 --> 00:11:37,320 Suze: It gets to stay in there and grow tax-free. 154 00:11:38,159 --> 00:11:42,400 Suze: And when you go to take it out and use 155 00:11:42,409 --> 00:11:46,890 Suze: it for a qualified medical expense, 156 00:11:47,840 --> 00:11:51,109 Suze: it also is tax free. 157 00:11:51,989 --> 00:11:57,130 Suze: So many, many people think. And I'm one of them 158 00:11:57,250 --> 00:12:03,580 Suze: that in many cases, a health savings account is probably 159 00:12:03,590 --> 00:12:09,079 Suze: when used correctly is one of the best retirement accounts 160 00:12:09,090 --> 00:12:09,890 Suze: out there 161 00:12:10,549 --> 00:12:13,809 Suze: because you get a tax deduction when you put the 162 00:12:13,820 --> 00:12:17,000 Suze: money in and when you go to take it out 163 00:12:17,609 --> 00:12:21,320 Suze: for a qualified medical expense, it is tax free 164 00:12:22,489 --> 00:12:29,270 Suze: and it covers almost absolutely everything except certain dental services. 165 00:12:29,280 --> 00:12:32,070 Suze: All right. And a few other things, but there's really 166 00:12:32,080 --> 00:12:37,299 Suze: very little on there that it will not pay for. 167 00:12:37,799 --> 00:12:39,989 Suze: Now with that said, 168 00:12:40,780 --> 00:12:47,080 Suze: a health savings account truthfully is for health needs. It 169 00:12:47,090 --> 00:12:53,400 Suze: does not replace your retirement accounts. It does not replace 170 00:12:53,409 --> 00:12:58,440 Suze: your 401k or your 403b or your TSP. It does 171 00:12:58,450 --> 00:13:02,880 Suze: not replace a Roth IRA. So just know that it 172 00:13:02,890 --> 00:13:07,750 Suze: works in conjunction with those retirement accounts. 173 00:13:08,429 --> 00:13:13,968 Suze: Next, I want you to write down maximum contribution 174 00:13:15,840 --> 00:13:19,409 Suze: The maximum contribution and I want you to write down 175 00:13:19,419 --> 00:13:21,539 Suze: for 2024. 176 00:13:22,559 --> 00:13:28,699 Suze: The maximum contribution that you can put into a health 177 00:13:28,710 --> 00:13:33,919 Suze: savings account with pre tax dollars is if it is 178 00:13:33,929 --> 00:13:36,460 Suze: a health savings account for just you, 179 00:13:37,250 --> 00:13:45,630 Suze: the maximum contribution can only be $4150. 180 00:13:46,590 --> 00:13:49,090 Suze: If you have a family plan, 181 00:13:49,820 --> 00:13:55,989 Suze: the maximum contribution that you can put in for 2024 182 00:13:56,000 --> 00:13:59,718 Suze: is $8300. 183 00:14:00,580 --> 00:14:05,330 Suze: You have to know those maximum contributions because you cannot 184 00:14:05,340 --> 00:14:11,070 Suze: put in any more than that. Those are the max 185 00:14:11,080 --> 00:14:19,229 Suze: contributions for 2024 unless you are 55 years of age 186 00:14:19,239 --> 00:14:26,070 Suze: or older. And then you can put in an extra $1000. 187 00:14:26,080 --> 00:14:29,549 Suze: So there is $1000 catch up 188 00:14:30,169 --> 00:14:34,479 Suze: for those who are 55 or older 189 00:14:36,049 --> 00:14:39,030 Suze: When you put money in there. And a lot of times, 190 00:14:39,039 --> 00:14:43,750 Suze: by the way, if you have an employer plan, this 191 00:14:43,760 --> 00:14:47,619 Suze: is something that your employer wants you to do. There 192 00:14:47,630 --> 00:14:53,109 Suze: are many companies that actually give you a tax free 193 00:14:53,280 --> 00:14:58,630 Suze: contribution at the very beginning of the year to help 194 00:14:58,640 --> 00:15:01,380 Suze: you fund your HSA. 195 00:15:02,570 --> 00:15:07,580 Suze: But please take in mind the maximum contribution that can 196 00:15:07,590 --> 00:15:09,659 Suze: go into an HSA 197 00:15:10,890 --> 00:15:16,159 Suze: includes whatever your employer may put in there as well. 198 00:15:16,559 --> 00:15:20,659 Suze: So you have to take their contribution into your HSA 199 00:15:20,960 --> 00:15:25,190 Suze: if they make one as part of the total max 200 00:15:25,200 --> 00:15:27,830 Suze: contribution for the year. 201 00:15:29,080 --> 00:15:32,849 Suze: And it's important that you have money in your HSA 202 00:15:34,229 --> 00:15:39,640 Suze: because what you have to understand is that the High 203 00:15:39,650 --> 00:15:41,809 Suze: Deductible Health plan 204 00:15:42,900 --> 00:15:44,669 Suze: that comes with an HSA, 205 00:15:46,150 --> 00:15:52,239 Suze: when you use it, they have a minimum annual deductible. 206 00:15:52,989 --> 00:15:56,090 Suze: Now, do you know how on many of your car 207 00:15:56,099 --> 00:16:00,650 Suze: insurances or whatever it is you have deductibles and the 208 00:16:00,659 --> 00:16:04,280 Suze: lower your deductible, the higher your premium, 209 00:16:05,030 --> 00:16:08,880 Suze: the higher the deductible, the lower your premium. 210 00:16:09,609 --> 00:16:13,349 Suze: And that is exactly the same concept of how an 211 00:16:13,359 --> 00:16:19,469 Suze: HSA with a high deductible health plan works. With an 212 00:16:19,479 --> 00:16:25,359 Suze: high deductible health plan, the minimum deductible and notice that 213 00:16:25,369 --> 00:16:32,719 Suze: I said minimum is 1600 for a single 3200. This 214 00:16:32,729 --> 00:16:37,229 Suze: is for 2024 for a family plan. 215 00:16:37,989 --> 00:16:42,530 Suze: Now, if the company wants to, they can make that 216 00:16:42,539 --> 00:16:45,409 Suze: minimum deductible higher than that, 217 00:16:46,169 --> 00:16:50,940 Suze: but it cannot be lower than that. Just be aware 218 00:16:50,950 --> 00:16:51,469 Suze: of it. 219 00:16:52,219 --> 00:16:57,460 Suze: Next, I want you to write down maximum out of pocket. 220 00:16:58,059 --> 00:17:04,000 Suze: What this means is that no matter what happens to you, 221 00:17:04,609 --> 00:17:09,089 Suze: the maximum that you will ever be out of pocket, 222 00:17:09,280 --> 00:17:12,839 Suze: meaning you will never ever, ever have to pay more 223 00:17:12,849 --> 00:17:14,239 Suze: than this amount 224 00:17:14,819 --> 00:17:21,280 Suze: for some health care service or qualified medical expense. So 225 00:17:21,290 --> 00:17:30,319 Suze: for the year 2024 for a single, that is $8050 226 00:17:31,239 --> 00:17:39,250 Suze: and for a family plan, it's $16,100. Do you see 227 00:17:39,260 --> 00:17:42,439 Suze: if you listen to these amounts that I just gave you? 228 00:17:42,550 --> 00:17:47,439 Suze: Do you see why they call it a high deductible 229 00:17:47,449 --> 00:17:49,060 Suze: health plan? 230 00:17:50,199 --> 00:17:55,449 Suze: So those are the terms that you really need to know. Now, 231 00:17:55,459 --> 00:17:58,488 Suze: I'm gonna talk about this a little bit more, but 232 00:17:58,780 --> 00:18:03,739 Suze: not everybody should have a high deductible health plan 233 00:18:04,760 --> 00:18:10,089 Suze: with an HSA. I personally love them and I think 234 00:18:10,099 --> 00:18:14,369 Suze: they are fabulous, but not all of you, number one 235 00:18:14,380 --> 00:18:17,099 Suze: are qualified and I'll tell you about that in a second. 236 00:18:18,000 --> 00:18:21,739 Suze: And number two, a lot of you don't have the 237 00:18:21,750 --> 00:18:24,699 Suze: money to be able to do so 238 00:18:25,369 --> 00:18:28,680 Suze: you have to know and use a calculator and decide 239 00:18:28,689 --> 00:18:33,140 Suze: and answer a few questions. If in fact, an HDHP 240 00:18:34,420 --> 00:18:40,659 Suze: with an HSA is something that meets your needs when 241 00:18:40,670 --> 00:18:43,579 Suze: it comes to a health plan. 242 00:18:44,640 --> 00:18:49,500 Suze: Even though I know that those numbers sound large 243 00:18:50,479 --> 00:18:53,500 Suze: again, I urge all of you to at least think 244 00:18:53,510 --> 00:18:57,810 Suze: about it because there are many, many circumstances where it 245 00:18:57,819 --> 00:19:03,859 Suze: absolutely makes sense, especially if you happen to have some 246 00:19:03,869 --> 00:19:05,900 Suze: disposable income. 247 00:19:07,109 --> 00:19:11,290 Suze: Now, when you start an HDHP and you want to 248 00:19:11,300 --> 00:19:12,410 Suze: fund your HSA, 249 00:19:14,390 --> 00:19:17,729 Suze: can you imagine KT in this podcast right now? Anyway, 250 00:19:18,390 --> 00:19:22,630 Suze: one way that you can do it is if you 251 00:19:22,640 --> 00:19:29,170 Suze: have money in an IRA, a traditional IRA 252 00:19:30,060 --> 00:19:35,359 Suze: you can do once in your lifetime, a roll over 253 00:19:35,369 --> 00:19:41,109 Suze: from your IRA into your HSA account. 254 00:19:41,869 --> 00:19:45,119 Suze: So now you're going from an IRA that if you 255 00:19:45,130 --> 00:19:49,410 Suze: took the money out for any reason, it would be taxable. 256 00:19:50,079 --> 00:19:53,469 Suze: But here, if you took it and did an IRA 257 00:19:53,479 --> 00:19:57,819 Suze: rollover with it and put it into your HSA and 258 00:19:57,829 --> 00:20:02,569 Suze: used it for a qualified medical expense, 259 00:20:03,239 --> 00:20:05,139 Suze: now, it's tax free. 260 00:20:05,900 --> 00:20:08,979 Suze: I want you to think about that. There are many 261 00:20:08,989 --> 00:20:10,160 Suze: of you out there 262 00:20:10,920 --> 00:20:15,939 Suze: that have 401k plans from ex employers. 263 00:20:17,069 --> 00:20:22,339 Suze: You cannot roll money from a 401k, for instance, into 264 00:20:22,349 --> 00:20:26,369 Suze: an HSA , they only allow it once but it 265 00:20:26,380 --> 00:20:28,198 Suze: has to come from an IRA. 266 00:20:28,910 --> 00:20:31,569 Suze: So for those of you out there who might be 267 00:20:31,579 --> 00:20:33,050 Suze: interested in 268 00:20:33,750 --> 00:20:37,770 Suze: a high deductible health plan with a health savings account 269 00:20:38,550 --> 00:20:43,430 Suze: and you happen to have money in an ex-employer 401k plan, 270 00:20:43,859 --> 00:20:47,369 Suze: you could do an IRA rollover with that 271 00:20:48,670 --> 00:20:51,170 Suze: and then you would be allowed 272 00:20:51,939 --> 00:20:56,839 Suze: to do an IRA rollover into your HSA but only 273 00:20:56,849 --> 00:21:03,040 Suze: up to the point of the maximum contribution for your situation. 274 00:21:04,010 --> 00:21:06,390 Suze: So if you happen to do 275 00:21:07,109 --> 00:21:12,229 Suze: a 401k IRA rollover or you have a traditional IRA 276 00:21:12,420 --> 00:21:14,800 Suze: and you have $10,000 in it. Let's say 277 00:21:15,510 --> 00:21:20,869 Suze: you cannot roll over $10,000 into your HSA . 278 00:21:21,630 --> 00:21:26,208 Suze: You can only roll over up to the maximum 279 00:21:27,010 --> 00:21:33,000 Suze: that is allowed in the HSA. So if there's nothing 280 00:21:33,010 --> 00:21:37,050 Suze: in there, you don't have an employer, match an employer contribution, 281 00:21:37,060 --> 00:21:40,119 Suze: nothing and you're single and you're under the age of 282 00:21:40,130 --> 00:21:45,879 Suze: 55 you could roll over up to 4150 for a 283 00:21:45,890 --> 00:21:52,629 Suze: family plan. In that same situation, you could roll over $8300. 284 00:21:53,729 --> 00:21:57,609 Suze: So when you take your money in an IRA and 285 00:21:57,619 --> 00:22:01,349 Suze: you roll it over to an HSA that is known 286 00:22:01,359 --> 00:22:06,310 Suze: as a qualified funding distribution. 287 00:22:07,420 --> 00:22:11,409 Suze: But you can only do that, listen closely to me, 288 00:22:11,500 --> 00:22:17,439 Suze: if you are enrolled in an HDHP - a High Deductible 289 00:22:17,449 --> 00:22:21,770 Suze: Health plan and you have to remain enrolled for at 290 00:22:21,780 --> 00:22:25,659 Suze: least 12 months. So they're not gonna let you just 291 00:22:25,670 --> 00:22:28,390 Suze: roll it over. Now it's in your HSA 292 00:22:29,459 --> 00:22:32,160 Suze: then you drop everything and think that you can get 293 00:22:32,170 --> 00:22:35,959 Suze: away without having to pay taxes on it. No, you 294 00:22:35,969 --> 00:22:39,819 Suze: can not do it that way. So just beware 295 00:22:40,670 --> 00:22:45,569 Suze: as time goes on when more and more money is 296 00:22:45,579 --> 00:22:51,198 Suze: building up in your HSA or many of you may 297 00:22:51,209 --> 00:22:56,339 Suze: find that you have a lot of disposable income and 298 00:22:56,349 --> 00:23:00,489 Suze: you wanna pay for your medical expenses out of your 299 00:23:00,500 --> 00:23:05,430 Suze: own pocket while you are saving the money that happens 300 00:23:05,439 --> 00:23:09,130 Suze: to be in the HSA. So it can build up 301 00:23:09,410 --> 00:23:11,899 Suze: and up and up tax free. 302 00:23:12,969 --> 00:23:17,430 Suze: So then in either case, you will have the ability 303 00:23:17,650 --> 00:23:21,550 Suze: to not just leave the money sitting there to pay 304 00:23:21,560 --> 00:23:26,219 Suze: your deductible or pay the max out of pocket expense. 305 00:23:27,079 --> 00:23:31,750 Suze: You now have the ability to invest that money with 306 00:23:31,760 --> 00:23:37,739 Suze: the investment choices which your HSA firm is offering you. 307 00:23:38,599 --> 00:23:42,699 Suze: So now you're investing money. You've never paid taxes on. 308 00:23:43,069 --> 00:23:46,000 Suze: It's growing, it's in a Standard and Poor's 500 index 309 00:23:46,010 --> 00:23:48,729 Suze: fund or whatever they may be offering you. And now 310 00:23:48,739 --> 00:23:53,140 Suze: it's growing and growing and growing and as time goes on, 311 00:23:53,150 --> 00:23:55,430 Suze: maybe you haven't been ill, maybe you didn't need to 312 00:23:55,439 --> 00:23:58,069 Suze: use money. You get to put more and more money 313 00:23:58,079 --> 00:23:59,900 Suze: in that investment account 314 00:24:00,599 --> 00:24:06,219 Suze: and now you have 50 $100,000 in there. Not impossible. 315 00:24:07,540 --> 00:24:09,839 Suze: You can use that money anytime you want for a 316 00:24:09,849 --> 00:24:15,040 Suze: qualified medical expense. But let's say, all right, you're now 317 00:24:15,050 --> 00:24:16,680 Suze: 65 years of age 318 00:24:17,410 --> 00:24:23,109 Suze: and now you've retired and now something's come up and 319 00:24:23,119 --> 00:24:25,379 Suze: you want to use some of the money that's in 320 00:24:25,390 --> 00:24:26,188 Suze: your HSA 321 00:24:27,729 --> 00:24:30,310 Suze: but you don't want to use it for a qualified 322 00:24:30,319 --> 00:24:33,050 Suze: medical expense. Maybe you want to use it for a 323 00:24:33,060 --> 00:24:35,790 Suze: down payment on a car or whatever it may be. 324 00:24:36,949 --> 00:24:40,930 Suze: Now, what happens is you get to take the money 325 00:24:40,939 --> 00:24:44,329 Suze: out without any penalty whatsoever. 326 00:24:45,609 --> 00:24:50,160 Suze: However, now you will pay ordinary income tax on it, 327 00:24:50,849 --> 00:24:53,959 Suze: but that's not such a big deal because that's almost 328 00:24:53,969 --> 00:25:01,040 Suze: exactly like in traditional IRA or traditional 401k. The only 329 00:25:01,050 --> 00:25:05,869 Suze: real difference is that in an IRA or 401k, 330 00:25:07,229 --> 00:25:10,650 Suze: once you're 59.5, you can take the money out without 331 00:25:10,660 --> 00:25:13,750 Suze: any penalty whatsoever and pay tax on it. Then 332 00:25:14,800 --> 00:25:18,560 Suze: when you're in an HSA. you have to be 65 333 00:25:18,569 --> 00:25:24,430 Suze: or older to take it out without a 20% penalty 334 00:25:25,849 --> 00:25:28,550 Suze: and then you will, like I said, pay ordinary income 335 00:25:28,560 --> 00:25:34,270 Suze: tax on it if it is used for a non-qualified 336 00:25:34,280 --> 00:25:36,229 Suze: medical expense. 337 00:25:37,239 --> 00:25:40,859 Suze: Are you understanding how it is just possible 338 00:25:41,739 --> 00:25:45,849 Suze: given the amount of money that we spend when it 339 00:25:45,859 --> 00:25:52,729 Suze: comes to our health needs in retirement? Oh, my God. 340 00:25:53,140 --> 00:25:57,189 Suze: Can you imagine putting money in and getting a tax 341 00:25:57,199 --> 00:26:00,839 Suze: write off for it and using it tax free? There 342 00:26:00,849 --> 00:26:06,329 Suze: is not one other retirement account that offers that benefit. 343 00:26:06,819 --> 00:26:10,520 Suze: But I just want to reiterate one more time that 344 00:26:10,680 --> 00:26:16,089 Suze: an HDHP with an HSA is not to replace your 345 00:26:16,099 --> 00:26:20,890 Suze: other retirement accounts. There are many other benefits that a Roth 346 00:26:20,900 --> 00:26:25,859 Suze: IRA has or a 401k or 403b or a TSP, 347 00:26:25,869 --> 00:26:28,790 Suze: especially if it's a Roth at work, especially if they 348 00:26:28,800 --> 00:26:33,670 Suze: match your contributions. So do not think that this... 349 00:26:34,219 --> 00:26:39,709 Suze: an HSA is to replace other types of retirement accounts. 350 00:26:39,719 --> 00:26:44,119 Suze: It works in conjunction with them. So I do ask 351 00:26:44,130 --> 00:26:47,000 Suze: all of you to really think about it 352 00:26:48,089 --> 00:26:54,109 Suze: and consider it a true possibility if you are eligible 353 00:26:54,119 --> 00:26:54,829 Suze: for one. 354 00:26:55,530 --> 00:26:58,709 Suze: One thing though, that's very important 355 00:26:59,510 --> 00:27:01,800 Suze: when you have an HSA, 356 00:27:03,430 --> 00:27:06,310 Suze: this is a type of an account that can go 357 00:27:06,319 --> 00:27:09,439 Suze: to your spouse for instance, and your spouse can take 358 00:27:09,449 --> 00:27:13,170 Suze: it over as her own or his own HSA. So 359 00:27:13,180 --> 00:27:17,369 Suze: your beneficiaries can come to play big time. If something 360 00:27:17,380 --> 00:27:20,329 Suze: happens to you before you have used it all up, 361 00:27:20,339 --> 00:27:25,160 Suze: you are not to ever make the following mistake 362 00:27:26,359 --> 00:27:30,899 Suze: if you have an HSA account and you have to 363 00:27:30,910 --> 00:27:34,419 Suze: fill out a beneficiary designation. 364 00:27:35,810 --> 00:27:40,589 Suze: And let's say you also have a living revocable trust 365 00:27:41,729 --> 00:27:43,310 Suze: and you are married, 366 00:27:44,130 --> 00:27:49,790 Suze: even if your spouse is the sole beneficiary of your living, 367 00:27:49,800 --> 00:27:51,329 Suze: revocable trust. 368 00:27:52,160 --> 00:27:57,699 Suze: If you put the trust as the primary beneficiary for 369 00:27:57,709 --> 00:28:01,489 Suze: an HSA on your death, 370 00:28:02,359 --> 00:28:07,030 Suze: everything that is in that HSA and it can be sizable, 371 00:28:07,130 --> 00:28:09,290 Suze: will automatically be put 372 00:28:10,010 --> 00:28:15,389 Suze: into your spouse's regular account and it will be 100% 373 00:28:15,400 --> 00:28:18,708 Suze: taxable to him or her. 374 00:28:20,869 --> 00:28:24,609 Suze: A trust is never, ever, ever to be a primary 375 00:28:24,619 --> 00:28:27,319 Suze: beneficiary of an HSA. 376 00:28:28,510 --> 00:28:34,010 Suze: If you're married, your spouse is to be the primary beneficiary. 377 00:28:34,300 --> 00:28:37,899 Suze: Am I clear with that? It's very different for an 378 00:28:37,910 --> 00:28:41,939 Suze: IRA and other retirement accounts, especially if it's what's called 379 00:28:41,949 --> 00:28:43,170 Suze: a seer trust. 380 00:28:43,589 --> 00:28:48,099 Suze: But even for other retirement accounts, if you are married 381 00:28:48,109 --> 00:28:53,930 Suze: in particular, your spouse has always got to be your primeary beneficiary, 382 00:28:56,729 --> 00:28:59,170 Suze: because he or she will then be able to take 383 00:28:59,180 --> 00:29:04,410 Suze: it over as their own. I hope it's obvious that for 384 00:29:04,420 --> 00:29:09,430 Suze: many of you, I love HSAs. I wish I could 385 00:29:09,439 --> 00:29:10,089 Suze: have one. 386 00:29:10,609 --> 00:29:13,550 Suze: But the reason that I can't have one is you 387 00:29:13,560 --> 00:29:18,479 Suze: cannot be enrolled in Medicare and have an HSA. 388 00:29:19,770 --> 00:29:25,030 Suze: Let's say however, that you're married and your spouse isn't 389 00:29:25,040 --> 00:29:26,949 Suze: covered by Medicare yet, 390 00:29:28,099 --> 00:29:32,380 Suze: they can have an HSA and if you have a child, 391 00:29:32,520 --> 00:29:36,579 Suze: that child can be insured under that HSA with your 392 00:29:36,589 --> 00:29:42,650 Suze: spouse that is not on Medicare. All right, you have 393 00:29:42,660 --> 00:29:46,800 Suze: to not be eligible to be claimed as a dependent 394 00:29:46,819 --> 00:29:52,020 Suze: on someone else's tax return. If you are, you can't 395 00:29:52,030 --> 00:29:53,619 Suze: have an HSA. 396 00:29:55,020 --> 00:30:01,119 Suze: You can't be covered by other health insurance. If you are, 397 00:30:01,130 --> 00:30:06,000 Suze: you can't have an HSA. Obviously, you need a high 398 00:30:06,010 --> 00:30:10,770 Suze: deductible health plan but not any other type of health 399 00:30:10,780 --> 00:30:15,609 Suze: insurance and to have an HSA , you have to 400 00:30:15,619 --> 00:30:20,689 Suze: be covered by a high deductible health plan on the 401 00:30:20,699 --> 00:30:23,189 Suze: very first day of the month 402 00:30:23,579 --> 00:30:29,290 Suze: that you open up in HSA. So those are things 403 00:30:29,300 --> 00:30:33,560 Suze: that you need to know. And one more thing if 404 00:30:33,569 --> 00:30:38,560 Suze: you happen to be receiving right now benefits under Tricare 405 00:30:38,569 --> 00:30:42,849 Suze: under the VA or IHS benefits, you're in the armed forces, 406 00:30:43,050 --> 00:30:46,640 Suze: you cannot have an HSA either. 407 00:30:47,109 --> 00:30:51,089 Suze: Now, there are additional reasons why you wouldn't be eligible 408 00:30:51,099 --> 00:30:54,469 Suze: for an HSA but I need you to check it 409 00:30:54,479 --> 00:30:57,939 Suze: out on your own. Otherwise this entire podcast would be 410 00:30:57,949 --> 00:31:01,819 Suze: possibly about that. But those things that I just listed 411 00:31:01,890 --> 00:31:04,930 Suze: are the main ones that you need to know. 412 00:31:05,839 --> 00:31:10,099 Suze: Now the question becomes, where can you go and find out? Well, 413 00:31:10,109 --> 00:31:15,140 Suze: normally your employer will offer you one, you should check 414 00:31:15,150 --> 00:31:18,170 Suze: it out and see if it makes sense for you 415 00:31:18,180 --> 00:31:23,540 Suze: in your particular situation. If you are an individual, there 416 00:31:23,550 --> 00:31:29,369 Suze: are many, many, many companies that offer HSAs, one of 417 00:31:29,380 --> 00:31:33,180 Suze: them is called the HSA Bank. 418 00:31:33,569 --> 00:31:36,459 Suze: You can go there and on their website, 419 00:31:37,270 --> 00:31:41,050 Suze: they actually have a calculator for you to put in 420 00:31:41,060 --> 00:31:45,699 Suze: certain facts and figures to see if an HSA makes 421 00:31:45,709 --> 00:31:49,890 Suze: any sense for you. I obviously am not being paid 422 00:31:49,900 --> 00:31:52,729 Suze: to say that they don't even know that I'm saying this, 423 00:31:52,979 --> 00:31:55,890 Suze: but that's another place that you might just want to 424 00:31:55,900 --> 00:31:59,819 Suze: check out, especially if you're an individual and you want 425 00:31:59,829 --> 00:32:03,420 Suze: an individual plan and you're not working for a company 426 00:32:03,459 --> 00:32:05,489 Suze: that offers one of these. 427 00:32:05,979 --> 00:32:11,079 Suze: All right, everybody that is your Suze School for today. 428 00:32:11,089 --> 00:32:15,250 Suze: I can just see your heads a whirling around. I 429 00:32:15,280 --> 00:32:16,719 Suze: can hear you saying Suze, 430 00:32:17,380 --> 00:32:21,930 Suze: when are you going to stop giving us these Suze 431 00:32:21,939 --> 00:32:25,979 Suze: Schools about these rules and that rule and these things 432 00:32:25,989 --> 00:32:28,430 Suze: in our Suze notebooks are all full and now we 433 00:32:28,439 --> 00:32:31,949 Suze: have another five Suze notebooks that are just chock a 434 00:32:31,959 --> 00:32:34,319 Suze: block full. When are you gonna give us just an 435 00:32:34,329 --> 00:32:41,150 Suze: emotional spiritual, maybe nice little financial podcast? I don't know, 436 00:32:41,750 --> 00:32:43,959 Suze: I kind of don't even plan it until I sit 437 00:32:43,969 --> 00:32:47,750 Suze: down and it comes out. Although I was thinking about 438 00:32:47,760 --> 00:32:52,849 Suze: doing a podcast on Financial Faith. Hm. 439 00:32:53,550 --> 00:32:56,229 Suze: That might just be one of the first Suze Schools 440 00:32:56,239 --> 00:32:59,579 Suze: I do when I come back. 441 00:33:00,280 --> 00:33:04,180 Suze: All right. Everybody wish us well as we embark on 442 00:33:04,189 --> 00:33:06,390 Suze: our trip over to Abu Dhabi. 443 00:33:07,270 --> 00:33:10,500 Suze: And when it comes to money, there's only one thing 444 00:33:10,510 --> 00:33:12,949 Suze: that I want you to remember. And it is this 445 00:33:12,959 --> 00:33:19,290 Suze: people first, then money, then things now you stay safe 446 00:33:19,300 --> 00:33:23,369 Suze: and you stay unstoppable.