Older Americans Are Missing Out on This Valuable Retirement Savings Plan
Many seniors find that once retirement kicks in, healthcare becomes their greatest monthly expense, surpassing even housing. The good news is that people who sock money away in a health savings account, or HSA, can access tax-free funds to cover medical care during retirement. The bad news, however, is that more than half of older Americans aren't taking advantage of the opportunity to fund an HSA.
What makes HSAs so valuable is their tax-advantaged nature. Many people are used to the tax benefits offered by retirement plans like 401(k)s. Well, HSAs allow for tax-free contributions, and any funds that aren't used immediately can be invested so they grow into a larger sum. Investment gains in an HSA aren't taxed, and withdrawals are tax-free provided they're used to pay for qualified healthcare expenses.
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Source Fool.com
