4 thoughts on “US Health Savings Account (HSA) (Account Options)

  1. Your mention of HMRC reporting funds reminded me of an issue that has kept me away from even these (where you can get them), namely ‘excess reportable income’’. This is an oft ignored or unknown source of taxable income in the UK (if not using an ISA or SIPP). It’s difficult to find the relevant info and tricky to calculate based on what shares you own on what dates. Vanguard produce a document about it that covers their US domiciled funds, but it’s hidden somewhere on its website and difficult to search through. I think even many seasoned tax professionals ignore this tax, but strictly speaking we shouldn’t. It also effects Irish/Luxembourg/etc domiciled funds outside of a UK tax wrapper, but these are PFIC anyway. See: https://monevator.com/excess-reportable-income


    1. Another rabbit hole! And just as I was getting close to figuring out the AMT bit…

      I knew there was a reason I was limiting my US taxable brokerage amount to a single index fund (VTI) – simplicity 🙂 After a lot of digging in the corners of various Vanguard websites, it looks like this is one that distributes all it’s reportable income, at least as of the only report I can find (from 2017: https://advisors.vanguard.com/iwe/pdf/taxcenter/TIDQAUK.pdf). I don’t see a reason that would have changed, and the annual report says that they continue to distribute all its taxable income.

      I’m also going to assume this is one of those things that doesn’t apply to pensions, so will ignore it for my IRA and TSP.

      Thanks for the heads up, I wonder how many other little mines are hiding out there that will turn up over the years.


      1. Ah – that’s the document I found, but didn’t realize they were just sticking the latest reports at the end…

        At least VTI is 0 for 3 out of the 4 periods, and the one it isn’t was when I didn’t have any (because the money was in a 529 😦 ) – will have to add this document to my checklist for my UK self assessment. It’s a stupidly small amount to worry about anyway, if my current holdings had the excess reportable income of that one period, it would be all of $16. Well under the dividend allowance, and 32.5% on $16 isn’t going to break the bank, even if I was over it for a given year.


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