I have been contributing to a HSA the last couple years, and it’s been fine. My work contributes $1800 over the year and it hasn’t really been a problem at all.
Now I have a kid and a spouse on my insurance, and they tend to go fairly often it seems. The copay and deductible on the HDHP is a bit crazy and I’m thinking of swapping to a PPO. Is that a good idea, or is turning down the free $1800 from my work a no no?
Here is a link to the plans
Interesting, good point. That can indeed happen if the HSA account itself was opened via your employer (sounds like yours was). Individual HSA accounts at Fidelity don’t have fees (accounts opened there directly without employer involvement). Maybe it’s worth asking Fidelity if you can open your own individual HSA account there to then transfer your old HSA funds into it. Otherwise perhaps an individual HSA account elsewhere may do the trick.
https://www.fidelity.com/go/hsa/why-hsa
Indeed, though I guess if you wanted to avoid that you could just leave the investments in money market funds or similar low risk investments. Or just don’t invest the money at all. But then people won’t be motivated to save money into an HSA to begin with. I suspect the whole point is to motivate people into putting money into the HSA since they’ll have to pay more and more health insurance out-of-pocket now and in coming years. It’s the American way! :P