HSAs: The Holy Grail of Retirement Savings Accounts

Updated : Oct 10, 2019 in Articles

HSAs: The Holy Grail of Retirement Savings Accounts


HSA contributions are going
up in 2020 with the Hsa, you get a tax deductible,
contributions, tax free growth and tax free withdrawals. No other retirement account can
match the tax benefits of the HSA. So I thought it would be
a great time to do it. A little bit of a deep dive on the Hsa
if you are not contributing to an Hsa. Hopefully by the end of this video I
will have convinced you that it is an essential component of a successful and
well thought out retirement plan for you. Hi there.
My name is Ashley Micciche. I’m the CEO of True North Retirement
Advisors where we help business owners successfully transition into retirement. And today’s topic,
I’m talking about the Hsa, otherwise known as the
health savings account. This account is the holy grail
of retirement savings account. No other account matches it
in terms of its tax treatment. And that you’re allowed to sock away a
pretty good chunk in your HSA every year. And that’s going up next year in
2020. So here’s the numbers. Um, so for this year, uh, you’re able to put, if you’re a single, you’re able to put about
$3,500 into your Hsa. If you are married, you can put $7,000 in for a
family and then if you’re over 55, you can make an additional thousand
dollars contribution on top of that. So you can get up to $8,000 this year
in 2019 in your HSA accounts next year, those limits go up.
So if you are single, it jumps to $3,550 so it goes up by $50
next year and then it jumps up for a by $100 for a family, she can do $7,100 if you’re a family
or $8,100 in 2020 if you are over 55 in terms of retirement accounts, I really would like you
to think of the HSA. I know this is totally
backwards and counter to what
most people do, but the HSA, because of its tax benefit,
it is, it’s amazing. Like the 401k,
the raw, none of it can match what the tax
benefits are and saving money in your Hsa. So I want you to think about your Hsa
if you’re eligible for one is to try to Max out your Hsa,
both for you, Max out your Roth or your 401k.
Um, because those tax benefits
are so beneficial and you’re
going to need this money to pay for health care
costs in retirement anyways, like you probably won’t ever be able to
contribute enough to cover what you’re going to have to outlay for our
medical costs in retirement. Uh, with rare exception. I want to talk about the big mistake
that most of you are making with your Hsa and that is that you’re thinking about
your Hsa in terms of paying for current health care expenses. So, you know, you might be contributing to an Hsa
account right now and that’s great, but you might be using most or all
of those dollars every year or not contributing up to the limit every
year and viewing this as a long term retirement saving vehicle. So I want you to think about the Hsa as
we longterm vehicle because what you can do with an Hsa is that most people don’t
realize is that you can invest those funds.
It does not have to sit in cash. It does not have to be
used in the current year. You can invest that money and it would
be wise for you to invest that for growth for a retirement account, just like you would your 401k or your
ra or any other retirement account that you, you know, any other account
that you’ve earmarked for retirement. Because again,
would you’re, you get tax free growth while
that money is in the Hsa, and then when you pull it out of the
health savings account in retirement and pay for medical expenses with it, tax free withdrawals, it’s
amazing. Yeah, I mean through, so like it’s such an
amazing benefit of the HSA. It saddens me that more people don’t
take advantage of it as this longterm vehicle. And so just to put some real
numbers around this, uh, currently, if you are retired today,
uh, the average cost for an American
today who’s retired, uh, for, for healthcare expense is about
a thousand dollars a month. So if you think about it,
it’s, uh, about $12,000 a year. If you look at it over your lifetime,
you’re, your most Americans are going to spend
in the range of $280,000 in retirement, specifically for healthcare expenses. So we all know that healthcare is
going to be costly and retirement. Uh, you know, it’s a big conundrum and pay actually
paid for health care costs in retirement and health savings account at the way
that you can front load those expenses. So while you’re still working,
while you’re income is still high, while you don’t have the burden of paying
for these medical costs in retirement, you can sock money away in an Hsa, save it for later on when you are retired
and in the meantime it can grow for you. So, um, and, and also
if you think about, uh, like longterm care needs, if you ever had dementia or Alzheimer’s
or you have to spend time in the assisted living that is expensive. So your cost for healthcare and retirement
skyrocket if you’re in that boat, if you change your mindset around the Hsa
and stop thinking about it as a way to pay for current medical costs and instead
of way to pay for future medical costs, um, that alone is going to help quite a bit
just in terms of how you invest and what you do with those Hsa dollars. But what I really want to emphasize here
is that this is going to be the most beneficial for, um,
people who are five, 10, 10 years out from retirement
even further than that. Um, because the more time you have
to save money in the age of, say, invest that money,
let that grow, the more you’re going to be
able to accumulate in that
account to pay for health care costs in retirement. So
don’t delay. Start now. Um, you can do research online. I wanted to,
I don’t want to make this video too long, but you know, you do have to satisfy
certain eligibility requirements, primarily have to be in a high
deductible, um, uh, health care, help,
help, help medical plan in order to
qualify and save in an Hsa. So make sure that you are
able to contribute to an
HSA and put it given that, um, priority in your retirement savings
account or do you think of Hsa first, then 401k Roth Ira or
other retirement accounts. And then if you still have money
leftover and you’re saving, then you can start thinking about
putting money in taxable accounts. But when it comes to saving
and prioritizing Hsa Roth
and 401k accounts and then other taxable accounts, that’s how I want you to think about it
and think about your Hsa as a powerful tool for paying for the inevitable high
costs of medical expenses that you will have in retirement. Thank you so much for watching.
My name’s Ashley. Micciche. I hope you enjoyed this video. If you
found it valuable, once you please like, comment and subscribe.
Now, you might inevitably have question about
whether or not an Hsa makes sense for you,
whether or not you’re eligible for an Hsa, how you should balance the saving in
an Hsa with all the other competing financial priorities than all the other
accounts that you’re trying to save for retirement. So if you have questions about your unique
situation and you’d like to schedule a call, uh, it’s free, there’s no
sales pitch, you’ll talk to me. Um, and I can answer all the questions
that you have about Hsa is how to set them up,
whether or not it makes sense for you. So below this video there’s a
link to schedule a call, um, and you can schedule a call at
a that’s convenient for you. It’ll give you access to my calendar, lie to see when I’m available and you
can schedule a call whenever it makes sense for you. And I will see you again in a couple of
weeks where I’m going to focus back on, uh, exit planning for business owners and
we’re going to talk about why is so essential to replace
yourself in your business. Thanks again for watching.
My name is Ashley Micciche. And I hope you have a fantastic day today. Today we talking about h
n a [inaudible] I’m gonna. I’ll be right back because,
um, I’m going to get some water. Do you like my shoes?

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