How To Make The Most of Your Health Savings Account Ep #1
Welcome to the very first episode of Retire with Ryan! Due to the restrictions of COVID-19, I haven’t been able to get the usual information I share in my adult education classes out there so I decided to try something new. I hope that these episodes help you as you invest and plan for the future.
Have you started investing in your Health Savings Account (HSA) yet? What are you waiting for? You might be thinking that you don’t have any pressing medical needs and you don’t see any coming your way soon - that’s OK - you should still consider investing in an HSA. On this episode, you’ll find out what an HSA is, how it works, benefits of investing in an HSA, action steps you can take, and so much more!
You will want to hear this episode if you are interested in...
Health Savings Accounts and how to use them! [0:38]
The benefits of a triple tax-free retirement play. [3:00]
How to move your money from an HSA account for more investment options. [5:00]
What you can spend your money in the HSA account on. [8:30]
Why you need to look at the HSA as a long term investment strategy. [11:00]
Action steps you can take! [12:30]
What is a Health Savings Account?
An HSA is a type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. By using untaxed dollars in an HSA to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your overall health care costs. You will likely be familiar with an HSA if you participate in a high deductible health care plan. For a single individual in 2019, you can contribute $3,500 - if you are married, the limit is $7,000. If you are over 55 years old, you can make a $1,000 “Catch-up contribution” to your HSA.
Benefits of a TRIPLE TAX-FREE retirement play
Wouldn’t you like to protect your hard-earned money and maximize your buying power as you plan for retirement? What if you could position your money in a triple tax-free plan? While a triple tax-free plan may sound too good to be true, I can assure you - it’s not!
With an HSA, you receive a tax deduction when your money goes into the account, the money grows tax-deferred, and if you take it out for health-related costs - it’s tax-free. If you are maximizing your employer-provided retirement options like a 401k, I strongly encourage you to start investing your money into an HSA also.
Action steps you can take today!
If you are anything like me, you need some solid action steps - concrete plans you can put into place to move things forward. Don’t let good advice and helpful insights go in one ear and out the other! Here are some key action steps you can take to get started with your HSA today.
Find out if you are eligible for an HSA. If you are, start contributing!
If you are contributing but it isn’t earning much interest, see if you can move it.
Make sure you are maxing out your contributions!
You can learn more about these action steps that I suggest, and a ton of additional details about HSA investing by listening to this episode of Retire with Ryan - you don’t want to miss it!