[Music] Samuel's question is up next. It says, Is there a quote unquote too much to have in an HSA? No, next question. Really, no, I'm just kidding. I want to know why. Yeah, so a lot of people wonder. So we think about this, right, and I think this is where people's minds go. They're like, Oh man, I remember hearing about like 529s, and I know that 529 accounts are really meant for like college, but if I save too much in a 529 and I don't end up needing all of those expenses to pay for college or K through 12 private education, I'm going to have money left over and I'm going to be overfunded, and there's going to be a penalty. And so they kind of take that framework and they then apply that to Health Savings Accounts. Okay, I know that these dollars are supposed to be used for medical expenses, but what if I don't have enough medical expenses? Here's what I get.

excited about with HSAs. They're sort of three things that get me really really excited. One is that I can use it for like current medical expenses. As I incur medical expenses this year, I can use those HSA dollars. So if I'm continue to grow them, I have the opportunity to do that. If I've been saving my receipts in the past while I was covered under a high deductible plan, then I can then reimburse myself in the future for prior medical expenses. So even if I don't have a ton of expenses right now, but over the last decade I've accumulated some, I can then pull out those HSA dollar. Or I imagine that as I age, I'm going to have additional medical expenses in the future. And we all know that as we age, we have more medical needs. So there's a really good chance that I'm going to be able to use those HSA dollars in the future. So between the time I started saving in it until the time that I leave this earth, there's a good chance I'm

going to be able to use those dollars for medical expenses, but there's one more little piece. There's one thing very special about HSAs. Even if one of those three things doesn't happen, yeah, once you reach 65 and older, um, HSA is kind of, they can be their own version of a transformer, and the fact that they have, I mean it'd be something qu quack qu quack, you know, you know, just so you know how they change. But it, but it does, it changes from, you still can get 100% tax-free growth if you use, um, your HSA for qualified medical expenses. But if you're worried about overfunding this account, you actually can use it as a, as a normal retirement account. It will be once you get to 65 and beyond, it is not subject to any type of penalties. Now, it will be subject to income taxes just like, um, your ordinary, you know, IRA or SEP IRA or a tax-deferred 401K, um, it's going to be just like that, but you're not going to overfund it.

not be able to get access to use that money for some other purpose. And let's not forget, you know, Fidelity every year gives this estimate of what health care will cost, and it's, I mean, it is like around $200,000. I think the last was like 250, so that's why I, I, I was scared to say quarter of a million dollars, but I knew it was over 200,000. So it was one of those things where um health care is not going to be something that gets cheaper. Um, I, I mean, unless somebody knows something I don't, so I, I think plan accordingly. But it is nice that that that this this HSA account has the option to give you even more flexibility as you get older and will likely need that money. It's great.

Can You Have Too Much Money in an HSA?

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