Memo from our Tax & Financial Planning Departments:
Healthcare is costly, and on the rise! In 2017, couples spent on average $275,000 for medical expenses during retirement. Costs are only expected to rise in the future with inflationary cost contributing to that increase.
Have you considered opening a tax advantage Health Savings Account to invest savings for health care expenses?
It’s quick and easy to set up the account, and we can help!
HSA’s offer three significant tax benefits:
1. Contributions are tax-deductible, or if made through a payroll deduction, they are pre-tax.
2. Interest earned is tax-free.
3. Account owners may make tax-free withdrawals for qualified medical expenses.
Employees with a high-deductible heath care plan are eligible to use a Health Savings Account (HSA) to save for current out-of-pocket medical expenses. An HSA can nicely complement employees’ 401(k) plans with attractive tax benefits, account balances that can be carried over year-to-year and the account can move with employees from job-to-job. Leftover money can remain in the account to grow and accumulate tax-free over time.
Healthcare won’t be your only expense in retirement, but will likely be one of the most costly. If you’re interested in learning more about how an HSA account might benefit you, click on the link below or call our office at (888) 671-7891.
Securities and advisory services offered through Cetera Advisors LLC, member FINRA, SIPC. Cetera is under separate ownership from any other named entity.