Need help with Planning Your Finances?
Need help with Planning Your Finances?
HSA Account
HSA (Health Savings Account) is a good alternative to FSA plans. You must have a HDHP (High Deductible Health Plan) to qualify. HSA contribution, growth and withdrawals for qualified health expenses are all tax-free. Year 2020 contribution limit is $3,550/$7,100 for Single/Family, plus $,1000 in catch-up contribution if older than 55.
HSA (Health Savings Account) is a good alternative to FSA plans. You need to have a HDHP (High Deductible Health Plan) to qualify. HSA contribution, growth and withdrawals for qualified health expenses are all tax-free. Year 2020 contribution limit is $3,550 / $7,100 for Single / Family, plus $,1000 in catch-up contribution if older than 55.
HSA is a Post-Tax asset. Unlike FSA (Flexible Spending Account), money in HSA can be used anytime. The HDHP premiums are somewhat lower than similar health plans, but the out-of-pocket deductible is higher as the HDHP name indicates. Some employers contribute to your HSA plan, thus partly subsidizing the high deductible cost.
HSA Contribution: Check your employer benefits to see if they offer a HDHP plan. It is a good option for those who are healthy and when there is an employer match. You can also invest the funds in HSA. However, it is better to be conservative with these investment choices as it is difficult to predict future healthcare expense needs.
HSA Contribution: Check your employer benefits to see if they offer a HDHP plan. It is a good option for those who are healthy and when there is an employer match. You can also invest the funds in HSA. However, it is better to be conservative with these investment choices as it is difficult to predict future healthcare expense needs.
An average 2-month hospital bill is ~$0.5M. A healthy 65-year couple will spend on-average ~$285K in healthcare related costs, excluding LTC, over their remaining lifetime.
Blog: LTC Facts and Economics
An average 2-month hospital bill is ~$0.5M. A healthy 65-year couple will spend on-average ~$285K in healthcare related costs, excluding LTC, over their remaining lifetime.
Blog: LTC Facts and Economics
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What is your HSA balance at retirement based on your current contribution and market growth?
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What is your HSA balance at retirement based on your current contribution and market growth?
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