For those who retire before Medicare, you should be able to continue contributing to your HSA by withdrawing your contribution amount from your IRA, which is taxable, and then depositing that amount into your HSA, which is tax deductible. The two transactions should offset each other and be tax neutral.
HSAs are awesome. You did forget one important fact that I thin should be mentioned. There are two states that do not recognize HSAs which are New Jersey and California. That means that at the state level, it functions similarly to a taxable account, you need to pay income tax, capital gains taxes, dividend taxes, etc. and you need to do it on your own accord because the HSA servicers will not send you any documents. It is however still a tax protected vehicle at the federal level of course.
I'm continually shocked at how many docs don't take advantage of HDHP/HSA's. There's literally no other investment account like it! If it were called a "Tax-Saving Healthcare Retiremement Plan that truly benefits High Income Earners" people would be all over these things! Maybe due for a rebrand?
Great podcast! Thank you!
For those who retire before Medicare, you should be able to continue contributing to your HSA by withdrawing your contribution amount from your IRA, which is taxable, and then depositing that amount into your HSA, which is tax deductible. The two transactions should offset each other and be tax neutral.
HSAs are awesome. You did forget one important fact that I thin should be mentioned. There are two states that do not recognize HSAs which are New Jersey and California. That means that at the state level, it functions similarly to a taxable account, you need to pay income tax, capital gains taxes, dividend taxes, etc. and you need to do it on your own accord because the HSA servicers will not send you any documents. It is however still a tax protected vehicle at the federal level of course.
I'm continually shocked at how many docs don't take advantage of HDHP/HSA's. There's literally no other investment account like it!
If it were called a "Tax-Saving Healthcare Retiremement Plan that truly benefits High Income Earners" people would be all over these things! Maybe due for a rebrand?