Health Savings Account (HSA): Helpful for Older People?

The Health Savings Account (HSA) is an amazing tool that a lot of people have been talking about. It is meant to help you save money on insurance and make your life simpler, maybe even help you be healthier.

But do HSAs work just as well for older Americans? The answer depends on your age.

Let's start with someone older than 65. Once you turn 65, you are eligible for Medicare, and that means you can no longer contribute to an HSA. If you had an HSA before you turned 65, a very interesting thing happens.

The HSA, which was basically an account that could only be used for medical expenses, suddenly becomes an Individual Retirement Account (IRA). It instantly changes status when you turn 65.

This is a very intriguing concept for all of us who are younger than 65. You already know that there is no "use it or lose it" condition for an HSA. You keep accumulating that money forever, you do not lose it at the end of each year.

So, if you're not sick very often, you may accumulate a lot of money in the HSA. Then, once you turn 65, you can start pulling money out of it each year as income. Your withdrawals are taxable, but won't it be nice to have another stream of income when you retire. Think of it as your "Healthy Life Reward Account." The healthier you are in your life, the more money you'll have left in your HSA. It could be tens of thousands of dollars!

If you are over 55 but younger than 65, you get even more benefits for your HSA. You are eligible for something called "catch up contributions." This means that you can put more money into this tax-deferred account than those of us under 55.

In 2005, you can put $600 more than you health insurance policy deductible, and the amount of that catch-up contribution increases every year until it hits $1,000 in 2009. If I were you, I'd take good advantage of those catch-up contributions. Tax-deferrals are always nice to have when tax time comes around.

Daryl Kulak is the author of the book "Health Insurance Off the Grid - A Wonderful Way to Use Alternative Medicine and Save Money on Insurance Using the New Health Savings Account (HSA)." The book provides a nine-step plan to get your self-employed or small business health insurance costs under control using a unique approach you won't find anywhere else. The book is available for sale as an e-Book or paperback at the Website http://www.healthoffthegrid.com

---

Is Your Financial Security at Risk?

The topic of insurance is not sexy by any means.... Read More

Medical Insurance Overseas

Thousands of people have work related commitments and in order... Read More

Home Insurance: Premium Protection In Case Mishap Takes A Rain Check

My whinstone house my castle is, I have my own... Read More

Factors That Affect Your Car Insurance Premium

Many factors affect the premium you will pay for auto... Read More

Finding Life Insurance Quotes For Adult Children

Shopping for life insurance quotes for adult children isn't any... Read More

The Need For Life Insurance

A person needs to reexamine their life insurance needs every... Read More

I Was In An Accident, Will My Car Insurance Rates Go Up?

You were on the phone, got distracted and before you... Read More

What Are The Auto Liability Insurance State Minimums For My State?

As you shop online for the best auto insurance deals... Read More

Inexpensive Life Insurance To Protect What You?ve Earned

Adequate life insurance to cover your income producing ability is... Read More

Car Insurance Online ? Benefits of Applying for Auto Insurance Online

Drivers are applying for auto insurance online not just for... Read More

What You Need to Know About Auto Insurance

Let's be realistic, everyone needs to have auto insurance. Aside... Read More

How Do I Calculate How Much Life Insurance I Need?

Life insurance protects you and your family from economic hardship... Read More

Is Purchasing Travel Insurance Smart?

To answer the question "is purchasing travel insurance smart?" let's... Read More

Insurance: A Necessity for Peace of Mind

There are many choices for insurance. Insurance is a policy... Read More

10 Tips to Save on Healthcare Insurance

Americans shopping for their own healthcare insurance can substantially cut... Read More

New Jersey Car Insurance - What Do You Need To Know About It?

When purchasing New Jersey car insurance there are many decisions... Read More

MSA or HSA: Can I Keep My MSA Or Do I Need to Convert it into an HSA?

The Medical Savings Account (MSA) is an older form of... Read More

Free Money Saving Auto Insurance Tips

Our money saving auto insurance tips were written for one... Read More

The Life Insurance Plan Online

Thank goodness the internet age has arrived helping us to... Read More

10 Ways to Lower Your Auto Insurance

Nowadays, auto insurance is really expensive. A typical insurance policy... Read More

Tips for Buying a New Home

My wife and I recently purchased a new home in... Read More

Should You Have Higher Deductibles On Your Coverage?

What is a deductible? A deductible is the amount you... Read More

Types of Life Insurance

There are different types of life insurance policies available. Shop... Read More

Life Settlements, More than a Cash Surrender Payout

With a life insurance settlement, seniors now have the ability... Read More

How Will an HSA Save Me Money?

The Health Savings Account (HSA) is a tool to help... Read More

Sisters Are Insuring Themselves: Finance is the New Feminism

According to a study by LifeSearch, the number of women... Read More

Auto Owners Insurance ? Do You Really Need It?

If you think you don't have any need for auto... Read More

Reducing Soaring Insurance Claim Costs

With the soaring rise in claims to insurers from their... Read More

Why Dont Women Have Life Insurance?

Traditionally, life insurance companies solicited men as the main breadwinners... Read More

Do You Pay Too Much For Your Car Insurance?

Do the premiums just seem to get higher and higher... Read More

Homeowners Insurance at a Glance

At first glance, homeowners insurance may seem perplexing and quite... Read More

Individual or Family Health Insurance Options

As more and more individuals working at home with or... Read More

Buy Life Insurance Online and Save

There are many ways to research and buy a life... Read More