Health Savings Account (HSA) Distributions
Health Savings Accounts (HSA) are probably the most popular and valuable tool in retirement, due to their tax advantages. ‘These accounts are the most tax-advantaged retirement savings accounts available,’ said Tripp Yates, a CFP, certified public accountant, and owner of Eaglestrong Financial.
If you play by the rules, ‘you get a tax deduction for your contributions, no tax on investment interest or gains, and you pay no taxes on withdrawals as long as you use [the money] for qualified medical expenses.’ If you’re qualified to open an HSA, you can also cover Medicare premiums and other medical costs in your golden years.
Another advantage of an HSA account is that you don’t have to take minimum required distributions. Similar to your Roth IRA, you can leave your HSA funds untouched until you need them for health-related expenses. From drug prescriptions, insulin, physical therapy to surgery, dental care and many more services, you will be able to use your HSA to pay the costs, saving a lot of your retirement income.
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