430 Mastering HSAs: Tips for 2024 and Beyond

Sound Retirement Radio

Health savings accounts are the most incredible tool available for retirement savings. Unfortunately, too many people I meet are missing out on using HSAs as part of their retirement strategy. We are going to do a deep dive into HSAs, but...

They are best for people who do not have a lot of health care costs every year and have the money to make the maximum contributions to an HSA. They have triple tax advantages in that your contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are tax-free. You enjoy lower health insurance expenses compared to a low-deductible plan. You get tax deductions for contributions, tax-free growth, easy access to the money before age 59.5, you can have investment opportunities for long-term growth, and a plan to cover health-related expenses in retirement. Unlike a traditional IRA, there are no RMDs, and after age 65, you can access the money for non-medical expenses without the 20% penalty. You can delay reimbursements and allow your HSA to grow tax-free and then take a tax-free lump sum in the future. And once you turn age 65 and start Medicare, you can use your HSA to reimburse the costs of Medicare Part B and Part D or pay for Medicare Advantage plan premiums.

If you do not currently have an HSA, I highly recommend you visit SoundRetirementPlanning.com and click on episode 430 to start to review all of the resources I’ve made available for your review.

The HSA is a powerful tool that can provide significant benefits for retirement planning and healthcare expenses. However, it's important to remember that the rules and regulations surrounding HSAs can be complex and require careful consideration.

The Retirement Budget Calculator is an intuitive tool that promises ease and accuracy. However, like any tool, user error could potentially lead to costly mistakes. To avoid this, let the experienced advisors at Parker Financial LLC guide you.

When you hire our team, we offer a comprehensive review of your current investments, taxes, and the data in the Retirement Budget Calculator. We will ensure your plan's completeness and accuracy, helping you create an investment strategy, assist with tax planning, and monitor your plan to maximize your retirement benefits.

At Parker Financial we offer a well-crafted retirement investment strategy, deeply rooted in academic data and financial science which can be the key to a prosperous retirement.

Don't leave your future to chance. Take the first step towards a sound retirement. Schedule your complimentary discovery session now by visiting Parker-Financial.net let us help you make the most of your retirement years.