I posted a query a week ago about how to handle a health saving account with tax deduction and no tax when withdrawl when used appropriately. Did not get a response so I assume it is not possible to do it accurately in ESPlanner Pro so am asking for improvement to software unless I am missing something.
Thanks,
Bruce Galvin
Revelation Financial Planning
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Virtually any financial instrument can be "faked" with clever use of special expenditures/receipts and side calculations. Not having the HSA rules off the top of my head I can't tell you how to go about it. HSAs have been on our list for a while but we have other things that are at the front of the list.
This is not to say we won't do HSAs, but probably not soon.
Best,
Dick Munroe
Dick, I cannot model it because of it's unique tax considerations so hope it gets some attention soon.
Thanks,
Bruce
Not soon. Publication 969 on www.irs.gov has the details. Working from memory, the tax characteristics are almost those of an IRA. You can spend it on anything health related without tax consideration. You can withdraw for non-health reasons prior to 65 (62?) with a penalty (10% ?). After 65 (62?) you can withdraw for any reason, with the same rules as for an IRA distribution. MDRs don't apply and the contents go into your estate upon death. None of these are hard to model with special receipts/expenditures. Excel (or NeoOffice) can be used to do the account calculations. From there it's easy to model. Contributions are excludible. Draws for health purposes are excludible. Draws for non-health purposes are regular income. Penalties are special expenditures. None of these are hard to model with ESPlanner, we just won't do the growth or withdrawal (if you want to run it on autopilot) calculations for you.
Best,
Dick Munroe