In this episode, the Balance Wealth team is discussing strategic use of Health Savings Accounts (HSAs) in retirement planning. They explore the benefits of HSAs, including tax advantages and investment opportunities, and share insights on maximizing these accounts for long-term financial health.

Takeaways:

• HSAs offer triple tax savings: contributions are tax-deductible, growth is tax-free, and withdrawals for medical expenses are tax-free.

• Investing in HSAs can significantly reduce healthcare costs in retirement.

• HSAs can be paired with inherited IRAs for strategic financial planning.

• It's beneficial to pay out-of-pocket for current medical expenses and let the HSA grow.

• Keep receipts for medical expenses to reimburse yourself later from the HSA.

• HSAs can be used as a long-term investment vehicle, similar to a Roth IRA for medical expenses.

• Employers' contributions to HSAs count towards the annual maximum limit.

• HSAs are more flexible than FSAs, as they roll over annually and grow tax-free.

• Consider switching to a high-deductible health plan to qualify for an HSA.

• HSAs can be opened independently of employer plans, offering more investment options.

#RetirementPlanning #FinancialAdvice #WealthManagement #HealthSavings #HealthSavingsAccount

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This material is purely intended to be general and educational in nature, and should not be construed as specifically-tailored investment, financial planning, tax, legal, or other professional advice. Information and data contained herein is as-of the date of publication, and may be subject to change in the future without notice. Any investment performance referenced is purely past performance, which is no guarantee of any future performance. Nothing contained herein should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or other financial product or investment strategy. All investment, tax, and financial planning strategies involve risk that you should be prepared to bear. You are highly encouraged to consult with professionals of your choosing before taking any action based on this material.