27: Health Savings Accounts (HSA's): What Women Need to Know

Take Back Retirement

Today we talk all things Health Savings Accounts. An HSA can be a really powerful savings tool but, like everything else in the world of finance, it literally pays to know the game and play by the rules.

The HSA can serve as a long-term savings account for medical expenses sometime in your lifetime—whether one week down the road or 40 years down the road. It is the only type of account that, when done right, gives you triple (and maybe quadruple) tax advantages.

This sounds like a great deal, which then begs the question: “Why isn’t everybody starting an HSA and dumping all their money into it?”

Listen in as Stephanie and Kevin answer that question and more, including best practices for putting money in and taking money out of your account, what your HSA may be able to cover that a typical medical insurance plan doesn’t, and how to ultimately decide whether or not to take advantage of this (potentially) powerful financial vehicle.

Key Topics:

• The difference between a Flexible Spending Account (FSA) and an HSA. (4:25)
• The HSA’s four tax advantages. (07:29)
• “So, this sounds awesome. Why doesn’t everybody put all their money into this thing?” (9:01)
• If you have a high-deductible health plan, can you put a large sum into an HSA? (11:28)
• Considerations around HSA catch-up contributions. (15:11)
• When to take money out of an HSA. (16:30)
• What your HSA covers that your typical medical insurance doesn’t. (20:02)
• “What happens if I die and I’ve got a balance in my HSA?” (24:06)
• How to decide whether or not to open an HSA. (28:15)
• “With an HSA, you don’t have to have earned income.” (32:21)

Resources Mentioned:

• Take Back Retirement episode 24: She Did It! Real Retirement Stories w/ KT

https://takebackretirement.com/podcasts/she-did-it-real-retirement-stories-w-kt/

• Take Back Retirement episode 15: What Women Need to Know About Social Security

https://takebackretirement.com/podcasts/what-women-need-to-know-about-social-security/

If you like what you’ve been hearing, we invite you to subscribe on your favorite platform and leave us a review. Tell us what you love about this episode! Or better yet, tell us what you want to hear more of in the future. [e-mail]

You can find the transcript and more information about this episode at www.takebackretirement.com.

Follow Stephanie on Twitter, Facebook, YouTube and LinkedIn.

Follow Kevin on Twitter, Facebook, YouTube and LinkedIn.