Skip to content
Trajan Wealth
  • Services
    • Private Wealth Management
      • Custom Design Portfolios
      • 401(k) Rollovers
      • Investment Tax Planning
      • Private Equity Investing
      • High Yield Savings Account
      • Life Insurance
    • Retirement Planning
      • Income Planning
      • Annuities
      • Small Business Retirement Plans
    • Estate Planning
      • Living Trusts
      • Estate Tax Planning
      • Asset Protection Planning
    • Elder Law Services
  • Education
    • Free Financial Plan
    • Tactical Tips Financial Blog
    • Financial Videos
    • What Is A Fiduciary?
  • About
    • Jeff Junior
    • Fiduciary Advisors
    • Estate Attorneys
    • Leadership
    • Careers
  • Locations
  • Why Us
Menu
  • Services
    • Private Wealth Management
      • Custom Design Portfolios
      • 401(k) Rollovers
      • Investment Tax Planning
      • Private Equity Investing
      • High Yield Savings Account
      • Life Insurance
    • Retirement Planning
      • Income Planning
      • Annuities
      • Small Business Retirement Plans
    • Estate Planning
      • Living Trusts
      • Estate Tax Planning
      • Asset Protection Planning
    • Elder Law Services
  • Education
    • Free Financial Plan
    • Tactical Tips Financial Blog
    • Financial Videos
    • What Is A Fiduciary?
  • About
    • Jeff Junior
    • Fiduciary Advisors
    • Estate Attorneys
    • Leadership
    • Careers
  • Locations
  • Why Us
CONTACT US
Client Logins
Trajan Wealth
  • Home
  • Client Logins
  • Contact Us
  • Private Wealth Management
    • Custom Portfolio Design
    • 401k Rollovers
    • High Yield Savings Account
    • Private Equity Investing
    • Investment Tax Planning
  • Retirement Planning
    • Income Planning
    • Annuities
  • Estate Planning
  • Elder Law
  • Education
  • About
  • Locations
  • Why Trajan
Menu
  • Home
  • Client Logins
  • Contact Us
  • Private Wealth Management
    • Custom Portfolio Design
    • 401k Rollovers
    • High Yield Savings Account
    • Private Equity Investing
    • Investment Tax Planning
  • Retirement Planning
    • Income Planning
    • Annuities
  • Estate Planning
  • Elder Law
  • Education
  • About
  • Locations
  • Why Trajan

Build your free financial plan online

Click Here
Health Savings Account

Health Savings Account: For Today and Your Retirement Years

  • October 1, 2020

Share this:

If you are not contributing to your health savings account (HSA), you miss out on a great way to save for health care expenses now and during retirement. HSAs allow you to save money tax-free through payroll deduction. Like traditional investments, some HSAs provide fund choices to increase accumulations.

With health care costs continuing to grow year over year, saving into an HSA plan makes sense.

Benefits of Health Savings Accounts include:

  • Contributions to HSAs are tax-deductible.
  • Contributions receive capital gains, dividends, and interest, which is tax-free.
  • You pay no tax on withdrawals used for supplemental insurance and medical expenses.

HSA qualified expenses include co-insurance, dental, vision, prescriptions, insurance plan deductibles, and other costs not covered by your health insurance. If you have questions about what your HSA plan covers or how much you can contribute to your HSA each year, contact your HSA provider.

As you change jobs during your working years, your employers may have different health savings account plans.  When you leave an employer, the HSA funds left over are yours and should be rolled over into your new employer’s plan. HSAs can only rollover into your new employer HSA, unlike a 401(K) that can rollover into an IRA. As you change employers throughout your career, you do not want to have multiple HSA accounts left at former employers, so move them into your current employer’s HSA plan.

You can move funds from an IRA into your HSA, but only if you are eligible to contribute to your HSA. Additionally, you need to do the transfer while covered by a high-deductible health plan. The IRA-to-HSA rollover includes a “testing period” that requires you to remain eligible for your HSA for twelve months following the transfer. Additionally, you must stay in your high deductible health plan until the testing period expires or face a 10% IRS penalty. Furthermore, you are only eligible for an IRA-to-HSA rollover once in your lifetime.

When you retire, Health Savings Accounts can pay for things that are not covered by Medicare.

Currently, Medicare’s cost is deducted from beneficiary Social Security payments for doctor appointments and hospitalization but has limited coverage. Retirees still need to carry supplemental insurance for dental, vision, prescriptions, and many other things that Medicare does not cover. Start saving into an HSA now to cover the supplemental insurances you will still need to purchase. The only exception to this is that once you enroll in Medicare, you cannot contribute to a health savings account even if still employed.

Financial planning involves planning for health-related expenses and making sure you prepare for any unforeseen financial impact through insurance coverage. If you have any questions regarding HSA accounts or other employment benefits such as your retirement account, contact our office anytime. 

© 2023 Trajan® Wealth LLC. Nothing in this blog is intended as investment advice, nor is it an offer to buy or sell any security. Please consult your financial advisor for questions about your personal financial situation. All investments involve risk, including the potential for loss. Trajan Wealth clients and employees may have a position in any of the securities mentioned. Portfolio holdings and other data are subject to change at any time and without notice. Additionally, the above links provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Trajan Wealth, L.L.C., of any of the products, services or opinions of the corporation or organization or individual. Trajan Wealth, L.L.C., bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. These materials are for informational and educational purposes and are not designed, nor intended, to apply to any person’s individual circumstances. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. Please consult with your legal and/or tax advisor before making any tax-related decisions.

More
Articles

Impacts of recession

How Recessions Hinder More Than Just Economic Growth

November 30, 2023
Image of downtown Fort Worth, Texas.

Retiring in Fort Worth

November 30, 2023
Couple planning ahead for Social Security changes in 2024

Social Security Retirement: Changes for 2024

November 29, 2023

Company

  • Locations
  • Careers
  • Privacy Policy
  • TWIO ETF

Services

  • Wealth Management
  • Retirement Planning
  • Estate Planning
  • Elder Law Practice
Contact uS
Client Logins
Trajan Wealth
Facebook-f Instagram Linkedin Youtube

*Advisory services are offered through Trajan Wealth, LLC, an SEC registered investment advisor. D.B.A. in Florida as Trajan® Wealth Insurance Agency. Annuity guarantees are based on the claims paying ability of the issuing insurance company. Any examples provided are hypothetical. Annuities are issued with prospectus and sales brochures and should be reviewed carefully before funding as features and benefits vary. Trajan Estate, LLC is an estate planning law firm providing legal services in Arizona and Utah and does not provide financial advisory services. Trajan Estate, LLC’s principals are Kent Phelps and Jeff Junior. Jeff Junior is also a principal of Trajan Wealth, LLC, an SEC registered investment advisor. Fiduciary advisor not dually licensed as a securities broker and not able to sell securities for a commission. Trajan Wealth, LLC does not provide legal services. Trajan Estate, LLC and Trajan Wealth, LLC have entered into arrangements in which Trajan Estate, LLC refers clients with financial advisory needs exclusively to Trajan Wealth, LLC, and Trajan Wealth LLC refers clients with estate planning legal needs exclusively to Trajan Estate, LLC. Legal services in states outside of Arizona and Utah are provided by independent law firms.

BBB Accredited Business
Verified Veteran Owned Business