I trade stocks a lil for fun in my HSA TD ameritrade account. Will I pay taxes on realized gains this year if I don’t withdraw anything?

Taxes
#1

About $2500 in realized gains. That I won’t withdraw. Curious if I will pay taxes on it now or when I withdraw it, say 30 years from now.

#2

HSA’s offer a triple tax benefit:

  • Money goes in tax free
  • Money grows tax free until withdrawal
  • Withdrawals for qualified medical expenses are tax free

So any trading/gaining you do inside of the account does not create a taxable event. You’ll only pay taxes with you withdraw it, and maybe not then if you spend it on qualified medical expenses!

1 Like
#3

Awesome, thanks again!

1 Like
#4

So I was reading up on HSA’s and it stated that in order to open one you have to have a high deductible healthcare is they true? I have dual coverage insurance with GeHa and VA. Can I still open an HSA?

#5

Hey Brian! Thanks for your service. I know that my family is not eligible for a HSA because I retired from the Navy and we have both my wife’s insurance through her job and TRICARE. My insurance through my military retirement makes us ineligible for an HSA. If you receive health care through the VA and it isn’t HUMANA/TRICARE, then you might still be eligible for an HSA. Good question though, perhaps it might deserve attention as a separate post or question. I wonder what @Jeremy thinks about this.

#6

Senior Chief thank you for your comments and thank you as well for your service. Nope I’m not retired did 8 years from 99-07. I have my Va healthcare and HMO Geha as I work for the VA as a therapist. I am just trying to maximize my tax benefits with the potential of investing into an HSA. From what I read though it has to be a high deductible plan.

1 Like
#7

Love the military representing in here! Spread that financial literacy to your fellow servicemembers!

And yeah. To open an HSA you need an “HSA compatible high deductible health plan”. It should be pretty clear from looking at your health insurance if yours qualifies, or you can call your health insurance provider for clarity.

HSAs are nice, but just a serendipitous thing if it happens to be the best health plan for you. I wouldn’t change your health insurance to try to chase this modest tax break.

1 Like