Image you are a few months from your 65th birthday and the excitement is building as you contemplate a whole new chapter of your life. As you and your partner review your financial picture, one account balance jumps off the page - your Health Savings Account (HSA).
After faithfully saving and investing year after year, the balance has grown (tax-free) to upwards of $400,000. You realize that it can be tapped (tax-free) for medical, dental, vision and long-term care expenses in retirement. What a relief you think!!
If you are married, in your mid-40’s or younger this could be your future. Even if your situation differs, you can still build a highly valuable asset using an HSA. Learn how. We can help with the planning details.
In a nutshell, an HSA can be a tremendously valuable savings vehicle with triple tax-advantages unlike any other:
Annual contributions are fully tax-deductible (no income limits or phase outs)
Contributions can be invested and grow free of any taxes (all dividends, interest and capital gains are reinvested year after year tax free)
Tax-fee withdrawals (for qualified medical expenses) can be taken at any time (with no age related penalties or IRS required minimum distributions!)
Qualified withdrawals will NOT subject you to Medicare Part B or D premium surcharges or increase the tax rate on your Social Security income, IRA Required Minimum Withdrawals, or any other taxable income.
This all requires careful planning and record keeping to avoid future IRS problems. We are helping clients today take full advantage of this important savings vehicle. Let us help you do this same.