As I write this blog post, it’s now mid-October and Open Enrollment season is upon us. For many workers, this means deciding how much to put aside in a Health Savings Account (HSA). As the title of my new book, Innovative Techniques for Maximizing Roth and Health Savings Accounts alludes to, there are ways individuals can better capitalize on HSAs.
Let me hit on a couple of highlights here. HSAs are the most tax-efficient vehicles for retirement security around as they are triple-tax advantaged. You get a tax deduction on your contributions, you pay no tax on earnings (except potentially state taxes in California and New Jersey), and qualified withdrawals can be made tax-free. As such, HSAs can be tremendous vehicles for building future tax-free income. A married couple age 55 or older can contribute and deduct up to $10,300 in 2024. That amount creates opportunities.
In addition to leveraging HSAs for long-term investing, the book also lays out ways to increase current tax year deductions when medical expenses for an individual or family are higher than anticipated. This is an important point as many families are facing higher out-of-pocket expenses for healthcare and understanding ways to optimize the tax advantages of HSAs can potentially save HSA account holders thousands of dollars in 2024.
I don’t write these books for the royalties, but rather to get new ideas into the minds of individuals and families to help them secure their financial futures. As such, the book can be purchased on Amazon for $8. If you are eligible to contribute to an HSA and wish to learn more, the book can be found here> Amazon. (And if you confuse HSAs with FSAs, you surely will want to read it.)
Decoding the Successful Retirement Journey: Vol.2, No.8
