A retirement savings vehicle you may never heard of: A Health Savings Account (HAS).
Here are three reasons why you should learn more about this hidden long-term savings option:
An HSA balance can accumulate from year to year and be invested similarly to a 401(k).
HSA’s come with three tax benefits: 1) you can contribute them on a tax-deductible basis, 2) Your savings grow tax free over time, 3) your savings can be withdrawn tax-free to pay for qualified medical expenses in retirement.
HSA savings are more practical for lower-income employees who live on their Social Security benefit and savings when they retire.
Instead of tapping into your personal savings to pay for your medical expenses, why not tap into your tax-free taxes with the money coming out of an HSA?
Using a trusted financial advisor is key when thinking about your financial future. Someone like Graeme Woods CLU®, ChFC® knows the strategies to help you achieve all of your financial goals in and out of retirement. To learn more call G.S. Woods Financial Solutions, LLC at (570) 661-1066 today.
Written by: Cady Ruth Stoever, G.S. Woods Financial Solutions LLC, Marketing and Communications Associate
Sources: Plansponsor Magazine, December 2019 – January 2020 Publication