Health savings accounts (HSAs) can have the benefit of being able to double as retirement savings accounts. “Since 2003, individuals and families who have health insurance policies with high deductibles, and aren’t eligible for Medicare, have been allowed to contribute pre-tax dollars to HSAs.” This article discusses how the IRS defines “high deductibles” for the year 2016 and how people who meet the listed thresholds can place a certain amount of money into an HSA this year. HSAs should not be confused with flexible spending accounts (FSA) because an FSA is more similar to a 401(K) in that an employer sets it up and diverts a percentage of a person’s salary. To learn more about HSAs people should speak with an experienced estate planner to receive personalized advice.
See John Brinkley, How to Effectively Utilize Health Savings Accounts, Investopedia, January 5, 2015.
