High earners are often looking for ways to strategically save on taxes while boosting their financial outlook. Health savings accounts (HSAs) are a great option for accomplishing this because they provide an uncommon three-point tax benefit: contributions reduce your taxable income, investments within the account grow tax-free, and, as long as you spend the funds on qualified medical expenses, the withdrawals are tax-free too. Additionally, HSAs have fewer restrictions and more benefits than flexible savings accounts (FSAs).
Whether you’re eligible for Medicare, signing up for employer-sponsored healthcare, or finding an individual plan on the marketplace, health insurance can be one of those topics that finds its way to the bottom of our to-do list and makes us all sigh.
Understanding your health coverage options can be a daunting task to navigate, but avoidance can have real consequences to your health and well-being! It’s important to be mindful of what coverage you need, annual enrollment and change periods, and potential penalties of missing deadlines in order to ensure you’re signed up on time for a plan that fits your needs.
Healthcare is one of the biggest and most unpredictable line items to prepare for in retirement. Medicare kicks in when you turn 65 however there is a big gap in what Medicare covers vs. the coverage you’re used to from your employer’s group plan.