A New Bill Could Make Health Savings Accounts More Accessible to Older Workers
Millions of seniors struggle to pay for healthcare during retirement, which is why saving for future medical expenses in a health savings account often makes sense. A health savings account, or HSA, is a hybrid savings and investment account earmarked for healthcare costs. HSAs are funded with pre-tax dollars, and that money can then be used to pay for qualified medical expenses that pop up immediately, as well as in the future. Any funds that aren't used, however, are invested for added tax-free growth. And all withdrawals are tax-free provided they're used for eligible healthcare expenses.
HSAs have long been regarded as a valuable retirement savings tool, since other than housing, healthcare often constitutes seniors' greatest expense. The problem with HSAs is that not everyone is eligible to participate.
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