Minimizing your tax burden is a big consideration in retirement, and believe it or not, Health Savings Accounts (HSAs) can be a great way to do that. HSAs allow retirement savers to contribute up to $3,600 per year (for individuals), plus an additional $1,000 in catch-up contributions for those aged 55 and up. But the real benefits of HSAs kick in once you reach retirement.
Unlike 401(k) plans or IRAs, HSAs aren’t tax-deferred—distributions from an HSA are tax-free as long as they are used to pay for qualified medical expenses. And on top of that, there is no required minimum distribution from an HSA. This Forbes article explains the various benefits HSAs can offer when it comes to your retirement.
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