Will Signing Up for Medicare Impact Your Health Savings Account?
Healthcare tends to be a huge expense for retirees. For some, it's their largest ongoing expense. That's why it's so important to save for it ahead of time.
In that regard, you have options. You could always pad your 401(k) or pump more money into your IRA. But if you're able to save for healthcare expenses in a health savings account, or HSA, it's generally in your best interest to do so.
The great thing about HSAs is that they're triple tax-advantaged. HSA contributions go in tax-free, and any funds you don't need to withdraw for medical bills right away can be invested in a tax-free manner. HSA withdrawals are also tax-free, as long as they're used to cover qualified healthcare expenses.
Source Fool.com
