[USER]

What are the benefits of signing up with an HSA? I’m 55 years old, in good health, and planning to retire somewhere between 62 and 65.

I’ve been hearing more about Health Savings Accounts (HSAs), but I’m still unsure if it’s the right move for me at this stage.

I’m currently looking for ways to optimize my healthcare spending and potentially save on taxes as I prepare for retirement.

What are the main benefits of opening and contributing to an HSA at my age? Are there specific tax or retirement advantages that make it worthwhile, even if I only have 7–10 years before retirement?

I’d really appreciate insights from those who’ve used an HSA effectively later in their working years or financial experts who understand the strategy behind it.

Thanks in advance!

[Barrett]

The benefits are that the HSA is triple tax advantaged.

[Angela]

It’s tax advantaged and can be used to pay COBRA premiums if you use it.

Great for paying future medical bills (or past bills can be reimbursed if you have the receipts).

[Michele]

Just do it and pay out of pocket if you can afford it. Make sure you actually invest the HSA, something like VTSAX.

[Julie]

The funds are tax free if used for qualified medical expenses. In many HSAs you have the option to invest your funds.

If you have a lot of money in there by the time you retire you can use the account like another retirement account.

I can’t remember how that’s taxed.

There are a few states that treat the accounts differently tax-wise. I have an HSA and I’m in California.

I have to pay taxes on my dividends. If I sell I’m paying taxes on the gains.

For qualified medical expenses incurred while you have your HSA you you can take money out of the HSA at any point to cover the expense…even years later.

I’m investing in my HSA and paying for medical expenses out of pocket while I can.

I’m hoping to save up a decent amount in the account and use it during retirement.

[Kristina]

What are the qualifications? I’ve looked into it, but I can’t find the actual figures.

For instance, what is considered a high deductible?

[Richar]

Keep in mind that you must stop contributing to it 6mos before you retire

[Author]

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