Page 32 - Empowered Learning for Dyslexic Children Benefits Guide 2022-2023

How to Save for Retirement with your HSA

An HSA is one of the best ways to save money for ■ Delay reimbursement—By leaving money
medical expenses during retirement. Like IRAs, in the HSA, your balance grows over time.
HSAs allow you to make tax-free withdrawals to You earn interest on the base balance
pay for eligible medical expenses. Withdrawals can and can access those funds if a large or
be made before and after age 65. unexpected expense arises. Be sure to keep
receipts, prescriptions and other expense
Many people are unprepared for the medical
expenses they may face after retirement. HSAs documentation in the event of an IRS audit.
allow you to be proactive and prepare for future ■ Defer reimbursement until the end of
health care emergencies. the year—At the end of the year, you can
reimburse yourself from the balance funds
HSA savings strategies for expenses from earlier in the year. Be sure

Strategy 1: Max out your HSA at the to keep receipts, prescriptions and other
beginning of the year expense documentation in the event of an
Although you have until April 15 of the following IRS audit.
year to make HSA deposits, contributing the ■ Save your receipts—As long as receipts
maximum dollar amount at the beginning of each are saved, you can withdraw money from
year gets you the full advantage of tax-free growth. the account tax-free in the future to be
Because funds earn interest over the entire year, reimbursed for expenses.
you’re able to make the most of your money. The Strategy 3: Invest HSA funds
extra interest you earn by contributing on January The money in an HSA grows and earns interest
1 of each year can make a big impact over 20 years over time if you make the annual maximum
or more. Family coverage can grow the account contribution. You can use your HSA to maximize
even more because of the higher contribution limit. tax-advantaged retirement savings.
Strategy 2: Keep funds in the HSA
You don’t have to get reimbursed for medical Medicare and HSAs
expenses right away. You can reimburse yourself at When enrolled in Medicare, you can use your HSA
any time, even years later. Because there’s no “use to pay for expenses. However, you can no longer
it or lose it” rule, all funds stay in your HSA. contribute to an HSA. It’s important to understand
how Medicare affects an HSA.
■ Pay medical expenses out of pocket—It
may make sense to pay for certain medical
expenses out of pocket. This way, you can
have all your HSA funds available when you
need them most.

Questions? We’re here for you. Call 866-758-6119, Monday–Friday 8 a.m. to 9 p.m.
or Saturday–Sunday 9 a.m. to 5 p.m. You can also send an email to
carefirstsolutions@hellofurther.com.

10 ■ Health Savings Account (HSA) Member Guide