Contribute to your HSA now and sail into retirement
Most retired Americans will need more money to pay for their health care needs than their insurance coverage will provide. Total projected lifetime healthcare costs for a healthy 65-year-old couple retiring in 2021 are expected to be $662,156.** Sign in to your online account today to make a contribution.
As you prepare for retirement, saving money income-tax free in your HSA can ease your mind. Keep in mind that you’ll always pay taxes when you withdraw funds from a 401(k). But if you use HSA funds for qualified medical expenses, it’s generally 100% income tax-free.
It's important to max out your HSA now. Once you enroll in Medicare, you can no longer contribute to your HSA, but you can still use it. It comes in handy because there are certain things traditional Medicare doesn't cover, such as hearing aids, vision and dental.
Did you know?
After turning 65, you can use your HSA funds for non-qualified expenses, like a boat or an exotic vacation. You’ll pay ordinary income tax on those funds, but the 20% tax penalty no longer applies.
*Assuming 25% tax bracket and 5% state tax rate in a tax-exempt HSA state. Results and amounts will vary depending on your particular circumstances.
**HealthView Services. 2021 retirement health care costs data report