Throughout his career in financial services, Jerry Guttman has educated the public on important aspects of tax, retirement, and estate planning. Jerry Guttman has been an advisor with The Total Living Plan since 1981 and offers clients innovative ways to maximize their retirement savings through vehicles like health savings accounts (HSAs).
Individuals under 65 years old can use a health savings account to plan for future healthcare spending. Contributions to HSAs are tax-deductible, and earnings can accumulate tax-free. Another advantage is that withdrawals made to cover certain medical expenses are also not taxable. Individuals between 55 and 64 years of age can contribute up to $4,550 per year.
HSA accounts covering couples or families have annual contribution limits of $9,000. Due to the account’s tax advantages, some investment experts advise HSA holders to avoid dipping into it to pay for medical costs before retirement. Not only will this allow the account balance to grow, but it can also help fund costly long-term care insurance. Further, withdrawals made for non-medical costs after age 65 do not trigger a penalty.
