Older Adults Are Missing Out on This Valuable Retirement Savings Tool
IRAs and 401(k)s are often what comes to mind when you think about retirement savings accounts, but there's actually a third option a lot of people tend to overlook: a health savings account (HSA). While it was originally created to help people pay for their medical expenses, the tax breaks it offers make it a smart place to stash some extra money for your retirement, too.
HSAs are gaining popularity among younger adults, but older adults have been slower to adopt them. Only 8% of those in their 60s and 4% of those in their 70s report using an HSA, according to a TD Ameritrade survey, compared with 16% and 15% of 40- and 50-somethings, respectively.
Some of this difference may be because HSAs haven't even been around two decades yet, and once you're on Medicare, you're no longer allowed to contribute to them. But if you're not enrolled in Medicare yet, you should definitely take a closer look at an HSA.
Source Fool.com
