Tuesday, April 29, 2014
With average health-care costs during retirement at $250,000, it is important to effectively plan for these costs. Health savings accounts (HSAs) are a retirement planning tool that offers serious tax advantages, and can help retirees avoid having to cut into their retirement savings for health expenses. By being enrolled in a qualified HSA plan, an account holder can make annual contributions that are income tax free and follow them when they move jobs or health plans. Not only are contributions tax free, but so are withdraws for qualified health-care expenses. In addition, the HSA funds can be invested once the required minimum balance is reached.
See Tom Torre, One Way To Pay For Health-Care Costs In Retirement, The Washington Post, April 9, 2014.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.