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July 26, 2005
Baby Boomers Should Maximize their Health Savings Account Contributions
The first baby boomers, born in 1946, turned 59-1/2 on July 1 and are now eligible to retire. Unfortunately, many aren’t even close to being financially prepared for this event. Health Savings Accounts (HSAs) can help.
The years fly by quickly, and retirement can be here before we know it. In addition to maximizing your IRA or 401k contributions, an important tool for maximizing your retirement income is to open a Health Savings Account.
HSAs give you a tax deduction for contributions to the account, just like an IRA. However, unlike an IRA, money can be withdrawn from the account tax-free to pay medical expenses. Most financial experts recommend fully funding your HSA before funding any other retirement accounts, precisely because this is the only account that allows tax-free withdrawals.
The last of the baby boomers were born in the early to mid-60’s, if I’m not mistaken. I’m one of them. So we’ve got 20 something years to continue to contribute to our retirement accounts. With some decent returns, it should be no problem for us to sail into our retirement years confident in our financial position.
Find more Health Savings Account inforamation at HSA for America
Posted by Wiley Long at July 26, 2005 10:38 PM