Health Savings Account Triple Tax Threat Strategy

Instead of using your HSA to pay for a medical expense right away, you pay for it out-of-pocket and keep the receipt. Archive your receipts somewhere safe, preferably digitally, where you can access them years down the road.

Later in retirement, utilize your saved receipts for eligible expenses and withdraw the money tax-free to use however you want.

If you are over the age of 50 and have successfully built-up substantial retirement accounts, you might face a serious tax issue in the future. The average retirement age in the U.S. is 65 for men and 63 for women. If you delay social security benefits, you enter what I call the opportunity valley.

Important Medicare Questions if Working Past Age 65

1. Does your employer have 20 or more full-time workers?

2. Is your current health coverage working for you?

3. Is your employer's drug coverage as good as Medicare Part D?

4. Are you currently receiving Social Security?

5. Do you want to keep adding to a Health Savings Account?

6. Are you and/or your spouse high-income earners?

7. Are you covered by your spouse's plan or the other way around?

According to the Fidelity Retiree Health Care Cost Estimate, an average retired couple age 65 in 2024 may need approximately $330,000 saved (after tax) to cover health care expenses in retirement.

Key Factors in Deciding to Delay or Take Social Security Early: Health Status, Early Retirement, Working Past Age 62, Return on Your Investments, Large Retirement Accounts, Federal and State Taxes, Liquid Assets, Other Income, Married, Divorced, Widowed, Social Security Concerns

How to apply for Social Security.
(1) When can you apply for Social Security?
(2) What if I apply early and change my mind?
(3) Impact of working while collecting social security benefits?
(4) If my social security becomes taxable, should I withhold?
(5) When can I expect my first social security payment?

If you change jobs or retire between the ages of 55 and 59 1/2 learn how to pull money out of your 401(k) penalty free by utilizing the lesser known Rule of 55.