Thread regarding Intel Corp. layoffs

The HSA, and related HSA investments, are yours to keep and remain the incredible savings vehicles that have always been. Dump in (2016) $6750 p.a. All contributions are either pre-tax (from payslip) or tax deductible. Withdraw to pay for qualifying medical expenses, but only if you are short of cash. Much more effective to leave it in there and use your tax unsheltered money to pay actual expenses. The HSA money continues to accumulate and grow tax-protected similar to a 401(k) except there is access for any reason without penalty once you are 65 (vs 70.5 for 401(k)) , no minimum required distributions at any age, and if you ever need to you can use ANY medical expense, from after the HSA was established for tax-free and penalty-free withdrawals. Keep records of your annual medical expenses to apply in 10, 20, 30 years time.

I will be making my full contribution this year. The most efficient home for my money is in an HSA, not in any other account.

But, I rant. Yes - your HSA is still your money and can be used for any medical expenses incurred since you established it (years ago even) until the last survivor of you or your partner dies. And then there are beneficial estate planning aspects. It is a win-win-win.

@fji--great summary, thank you!

How about HSA; not the same as FSA?

And how much are COBRA payments versus MarketPlace or other options?

COBRA continues your present insurance just as it is now. So, deductibles and out-of-pocket spends continue through 2016. No reset with COBRA. Everything is reset on Jan 1 2017 though, just as if it were regular insurance. Any progress towards meeting plan deductibles in 2017 would not count for anything once COBRA finished. If you choose 12mo COBRA that would take you to 12mo after your termination and deep into 2017. You have the option of running COBRA (at your expense) until 18mo after termination, maybe close to the end of 2017. That self-pay COBRA may be worthwhile if you reach the 'free' after out-of-pocket realm. So, as you see, COBRA has certain penalties with a high-deductible plan vs. COBRA with a traditional subscription/co-pay plan. You do need to be aware of cumulative tax-year achievements which are worthless once COBRA ends or you find other insurance.

It is a gap in the COBRA legislation which was intended to protect employees. It really needs updating to compensate employees appropriately with tax-year thresholds which are important with HDHPs, vs. the simple co-pay model of older plans.

What does change is the (limited use) FSA you may have. You would need to google because it gets complicated, but monies paid into the FSA before termination may only be claimed for expenses with a date-of-service before termination date. You can continue FSA into COBRA, but you would need to pay in with after-tax dollars in order to extand the FSA period and be able to claim against the funds paid in before termination. It gets painful, especially when the Hewitt folks explaining it don't know the rules. I ended up losing all my FSA money for the want of not being told that I could only use it if I (for example) contributed $1/mo until the end of the year. Not knowing about that $7 cost me $500. Argh.

I don't know about the deductible. Sounds like a question for a COBRA rep. I agree with @HQjA8GG-cfy but it's up to you what works best for you.

But how does the deductible part of it work? I'd rather stick with it for a year if the deductible doesn't reset in 6 months....does that make sense?

If you plan on getting a job within the next six month then obviously 6 months is a better choice. Otherwise go all out.

My only argument about 6 month + cash being better is if I get a job with good insurance within 6 month I get to enjoy the cash as a bonus (minus tax implications), and if I do not get a job then I apply the 9K for the next 6 months. So I see it as flexibility