As we discussed in a recent blog post, proposed legislative changes could almost double the amount health savings account (HSA) owners are allowed to contribute annually. Financially-savvy individuals have been using their HSA as an option to supplement their retirement savings for years. An HSA has certain tax advantages that an IRA or 401(k) does not. In this post, we will discuss a few ways that an HSA can be used to create future savings.
HSAs: The common ground
While lawmakers struggle to come to an agreement on healthcare, one thing remains clear: Health savings accounts (HSAs) have a major role to play. Provisions being considered would strengthen HSAs now and make them an even more effective way for individuals to prepare for the burden of healthcare expenses in retirement.1
A path to health and wealth security
House and Senate proposals would substantially increase the benefits available to users of HSAs
Enabling tax-free use of HSA funds to cover qualified medical expenses and save families thousands of dollars in over-the-counter medication costs.