HSA & Retirement: A Smart Way to Save
Retirement can be a daunting prospect for many American workers. According to Bankrate, nearly 45% of workers doubt they'll save enough to retire comfortably, and over 65% feel they're behind on their retirement savings. But there's hope! No matter your age or current savings, starting now is better than not starting at all. One effective way to boost your savings is through a Health Savings Account (HSA).
What is an HSA?
The BASE® Health Savings Account (HSA) is designed to help you save and pay for qualified health care expenses on a pre-tax basis. This means you get excellent tax benefits, making every health care dollar stretch further. But that's not all – the HSA also offers long-term benefits that many participants overlook.
Short-Term and Long-Term Benefits
In the short term, an HSA helps you manage health care costs. In the long term, it provides an opportunity to save for the future. You can use it to pay for future health care expenses or invest the funds to build wealth and diversify your retirement portfolio.
Triple Tax Advantage
The HSA offers a triple tax advantage:
- Contributions are made on a pre-tax basis.
- Investment growth is tax-free.
- Withdrawals for qualified health care expenses are tax-free.
An individual can truly maximize the potential of an HSA by tapping into its investment capabilities. The BASE® HSA allows you to invest in an interest-bearing account or a standard mutual fund lineup.
A Versatile Savings Tool
The BASE® HSA is not just for health care costs. With over 5,000 mutual funds and investment options through a self-directed brokerage account, it can also serve as a retirement savings tool. Withdrawals for qualified medical expenses are tax-free at any age. Once you reach 65, you can use your HSA money for any reason, though non-medical withdrawals will be taxed. This flexibility makes an HSA a powerful tool for achieving your retirement goals.
Learn More
Interested in maximizing your savings with an HSA? Contact BASE® at 1-888-386-9680 to learn more or visit BASEonline.com for more information.
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