Supplement Social Security Benefits with an HSA - AMAC & The Motley Fool
Social Security only pays an average monthly benefit of $1,543, not nearly enough to live on. Retirees who have it as their only source of income struggle to manage their bills. Thus there is an urgent need for seniors to augment their incomes. Savings and retirement plans can help, but Maurie Backman suggests a Health Savings Account (HSA). HSAs have triple tax benefits. Contributions go in tax-free, investment gains in the account are tax-free, and withdrawals are tax-free when used to cover qualified medical expenses. They are more limiting than 401(k)s and IRAs because they are for healthcare expenses only. But once you retire, medical care could become your single largest recurring expense. You can’t contribute to one unless you’re enrolled in a high-deductible health insurance plan. But if you are eligible, it pays to put money into an HSA while you can. You’d then have a dedicated source of income to pay for your healthcare costs down the line. Another great feature of HSAs is that they allow you to take withdrawals for any reason starting at age 65 without penalty. If you remove HSA funds for non-medical purposes, you will be taxed on your withdrawals, but the same holds true for a traditional 401(k) or IRA withdrawal. Full article here by Backman.
The Association of Mature American Citizens (AMAC) has developed a bipartisan compromise bill, titled “The Social Security Guarantee Act”. One of its several components is Social Security PLUS, a new yet voluntary early retirement plan that would allow all earners to have more income available at retirement. This component is intended to appeal especially to younger workers. Learn more about AMAC’s Social Security Guarantee here…
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.