The Benefits and Limitations of Health Savings Accounts (HSAs) as a Retirement Resource
Introduction
Health Savings Accounts (HSAs) are becoming more popular as a retirement resource for individuals looking to save for healthcare expenses in their golden years. This tax-advantaged savings account allows individuals to contribute pre-tax dollars towards healthcare expenses, which can be used not only for immediate medical needs but also for future healthcare costs. In this article, we will explore the benefits and limitations of HSAs as a retirement resource.
What is a Health Savings Account?
A Health Savings Account is a tax-advantaged savings account that allows individuals to save money for medical expenses. To be eligible for an HSA, individuals must have a High Deductible Health Plan (HDHP) and cannot be enrolled in Medicare. Contributions to an HSA are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses.