DH and I are not eligible for an HSA account but it’s worth looking into for those who are not covered by Medicare.
By Ashlea Ebeling, The Wall Street Journal, Updated May 17, 2023
The Internal Revenue Service on Tuesday announced the largest ever increase to the amount Americans can set aside in health-savings accounts each year.
For 2024, the maximum HSA contribution will be $8,300 for a family and $4,150 for an individual. That is up from $7,750 for a family and $3,850 for an individual for 2023.
Participants age 55 and older can contribute an extra $1,000, which means an older married couple could sock away $10,300 a year, up from $9,750 this year. In the last 10 years leading up to retirement, a couple could accumulate more than $100,000 in these accounts…
To be eligible to contribute, a participant must have an HSA-qualified high-deductible health plan and not be enrolled in Medicare…
While workers can tap 401(k)s and individual retirement accounts for medical costs, health savings accounts offer more tax savings than both traditional or Roth retirement accounts. There is no tax going in, tax-free growth and tax-free withdrawals if used for eligible healthcare expenses.
Eligible medical expenses include Medicare Part B premiums, which run almost $4,000 for a married couple with income of up to $194,000 for 2023. Also eligible are deductibles, copays and vision, dental and hearing expenses, and even long-term care…[end quote]
It’s worth looking into this if you are still working.