1065. But did you know an HSA has more tax benefits than a Roth IRA and a traditional 401(k) combined? Host Laura Adams breaks down the perks and how to build more retirement wealth with an HSA. You’ll learn the "shoebox strategy," what happens to funds after 65, and traps to avoid.
Key Takeaways
- HSAs offer pre-tax contributions, tax-free investment growth, and tax-free withdrawals for qualified medical expenses.
- The "shoebox strategy" allows you to reimburse yourself tax-free for qualified healthcare expenses at any time.
- You can choose to pay healthcare expenses out-of-pocket and let an HSA balance grow, with no spending deadline.
- At age 65, the 20% non-qualified withdrawal penalty disappears, which makes an HSA similar to a traditional IRA where distributions are taxed as ordinary income.
- Enrolling in Medicare past age 65 automatically backdates your coverage by up to six months, which can trigger a 6% penalty on HSA contributions.
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Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
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