According to Kim Lankford at AARP, a Health Savings Account (HSA) can provide tax benefits that are “better than a 401(k).”
HSA accounts allow account holders to withdraw money for qualified expenses.
However, account holders are not required to. Instead, they can also choose to pay expenses out-of-pocket, then withdraw it from the HSA account, tax-free, at any point in the future.
If account holders plan to do this, AARP advises they keep records of all eligible expenses, records proving no withdraw was made, as well as an explanation of benefits from their insurance company.
The biggest advantage for retirees, AARP explains, is the ability to use HSA accounts to pay for the premiums of Medicare Part B, Part D, and Medicare Advantage since these costs can quickly add up.
With careful planning and good record keeping, retirees should be able to reap the great tax benefits of HSA accounts.
Looking for more ways to achieve financial security after retirement? Check out The Senior Security Alliance’s bill, the Senior Citizens Bill of Rights, and be sure to sign our petition to show your support.
