On October 30, 2017 at 22:21, Mario said...
My standard PPO premiums would be $4,800.
HSA administrator talks to payroll company about how much they want to take per paycheck.
Telling HSA that I get paid monthly vs. bi-weekly means that they (HSA admin) take my max (because I told them I want to contribute max) allowed amount, in my case $6,750 for 2017 and divide it by # of paychecks.
So bi-weekly paychecks = 26
Monthly paychecks = 12
$6,750/26=$259.62
$6,750/12=$562.50
Telling them I get paid monthly expedites my deductions/contributions.
Since I'm investing my 'excess' balance, the sooner I can make deposits, the sooner the money is there to grow.
BTW, in my case, I maxed out my yearly contributions early. HSA admin contacted payroll and asked them to stop making contributions due to max being reached. Same thing happened for 401K, which is managed by another company.
This is something that apparently happens regularly with companies that pay out performance and/or quarterly bonuses.
Amounts are figured at beginning of the year with regular paychecks being the only things figured in. Extra deposits/bonuses/expense reimbursements that are not attached to regular paychecks speed up deposits and people max out their IRS allowed contributions somewhere in late Oct. or Nov.
The $4,800 is the annual cost of the PPO (Non-HSA Plan) correct? What is the annual cost of the HSA plan? Does the HSA have both in Network and out of network benefits?
Monthly would get you a little additional dollars in their sooner. Well at least for the first few months. Then you will start catching up as the year progresses with Bi-weekly or weekly. Since some months have 5 weeks, it sort of catches things up every few months and then repeats.
Are you solo (no employees)? If on your own, you then "should" be able to do a lump sum if you really wanted and put all the $$ in there on Jan 1. You should ask. Maybe just send them a check vs. having to have it deducted through your paycheck. Doesn't matter where the $$ come from as long as you don't exceed the IRS limits for the year.
