Protect Your Retirement with a Health Savings Account
Health is something we often take for granted. Sure, you may be in top health right now, but the future offers no guarantees. When you’re preparing for retirement, it’s good to have a medical savings account set aside to prepare you for the unexpected; why not choose a HSA and take advantage of its benefits?
Think about Opening a Health Savings Account
There are a number of benefits that come with having a health savings account (HSA), including tax advantages and the added peace of mind that comes with knowing you’re covered. If you currently have a high-deductible health insurance plan, opening an HSA is a great way to create an additional layer of protection against expensive medical bills.
Some of the advantages of having an HSA include the following:
- Huge tax breaks, including tax-deductible contributions for payments made with taxed income, tax-free medical withdrawals, and tax-free interest.
- Contributions to your HSA can be made by anyone.
- The money in your HSA rolls over at the end of the year and even stays with you when you change insurance plans or providers.
HSA and Your Retirement
Your HSA should be looked at as an additional retirement program, alongside your IRA or 401(k), and its tax benefits make it an excellent way to prepare for your medical expenses after you retire. If you’re currently enrolled in a 401(k) with low contributions by your employers, investigate the tax advantages that come with opening an HSA.
You may find that you’ll benefit more in the long run by giving your HSA priority and maxing out your contributions every year. For 2017, the maximum an individual under 55 can contribute is $3,400, and a family can contribute $6,750. People 55 and older can contribute an additional $1,000 to their HSA.