Distribution Options

The ‘Open Enrollment’ period for health insurance plans currently runs from November 1st to December 15th. Outside the Open Enrollment Period, you generally can enroll in a health insurance plan only if you qualify for a Special Enrollment Period.

The reason why it’s so important to think about an HSA plan during the Open Enrollment Period is that if you don’t choose the right plan now, you can’t take a deduction and contribute to an HSA in that tax year.

Essentially, the HSA is much like an IRA and operates as tax-favored savings account for health care. You get a tax deduction when it goes in, it grows tax-free, and it comes out tax-free at ANY time, at ANY age, for a qualifying medical expense, which includes a long list of items. (See IRS Publication 502 for what qualifies as a valid/deductible medical expense).

The only requirement to qualify for one of these accounts is that you have to use
a qualifying high-deductible health insurance plan. Once you have the proper insurance, you can create an HSA account at Directed IRA and even self-direct it into alternative investments. For example, you can own rental property in your HSA!