I was laid off on April 2, 2024, and have been funding an HSA through payroll deduction. I'm 62 and have contributed $2500 for the year so far. We're on COBRA with an HDHP and expect to stay through the end of the year. My husband, I, and my 23 yo daughter are covered and we met our $6000 out of pocket maximum. Daughter started a new job and will have access to insurance in 90 days, which is another life event. My husband can cover us through his plan at that time. (We didn't choose that plan due to the coverage not being as good as what we have.) My former employer is subsidizing COBRA through July 26, 2024. We live in Texas. I don't know if I'll go back to work this year or not. Combined income is expected to be around $162000.
Is there a tax advantage to fund the HSA account for the year (after tax) to the limit and use that money to pay the COBRA premiums and other healthcare expenses? If not, what is the best way to handle this?
Can 401k or rollover IRA money be used to fund the HSA without penalties and would it be wise to use it?
Is there a tax on the HSA balance at the end of the year (assuming no excess contribution)?
Inspira charges $5 per month for my HSA now that I'm unemployed. Are there other HSA companies that do not charge a monthly fee outside of an employer arrangement?
Given this scenario, what is your recommendation for the best tax outcome for 2024?
Thank you for the guidance.
