Good stuff. We keep receipts for any medical expenses more than a few hundred bucks. It's basically a tax-advantaged emergency fund for us, because I know that if we suddenly needed a few months of expenses, I can cut myself a check on the spot.
EXCELLENT! We invested in an HSA before we retired and continue to watch the HSA grow and not touch it. After retirement, we are minimizing our tax liabililty with Roth Conversions to reduce the tax during RMD phase of retirement. We downsized and moved and are using that cash for Roth Convesions for the next 5 years.
I’ve been relying on a traditional 401(k) and taxable brokerage accounts, but I’m realizing that I might be paying more taxes than necessary. I’m now looking into tax-free options like Roth IRAs.
HSA's are an amazing tool, but when deciding on high deductable insurance plan can cause a huge jump in medical expenses while contributing to rhe HSA. Look carefully at your health needs. Generally, deductables don't applied before your insurance pays for prescritions. If you have an HSA, you will pay full price before insurance pays. If you have an expensive drug, it can cost you dearly. Same with other things that the same would apply, like blood work.
Not true at all. With my HDHP I pay less each year than a standard insurance plan. I use my insurance a lot and am still way ahead with my HDHP and HSA.
@@annieva264 Well, IF that's true, you are the exception! I had one, and I used it very little, and it barely broke even, with one expensive medication. However, I was ok with that, becaue for me, it was strickly ro build up an HSA, which would grow for years before needing. That being said, and comparison between regular health plans and HSA's, whether by insurance companies or non-insurance organizations, always come to the conclusion that if you have a lot of heath issues, with doctor appointments, prescriptions, teasts, or hospital visits, HSA's generaly are not best for you!
Kevin, great video as always, quick question: at what age do you think is less advantageous to use a roth 401k vs traditional? Or is it more about income? Thanks
@@matthewowcarz8259 a question of paying going in vs paying coming out. If you work the arithmetic it's the same, unless real world fluctuations work against one or the other. If you withdraw from an IRA when the market is high there's a tax bite. If you withdraw from a Roth when the market is low you haven't got much of a benefit from the shelter. Your heirs will appreciate the Roth--no taxes.
if employer provides HSA, do you have advice to optimize it? Can spouse who is not employed have their own separate HSA? Spouse and I both have a max-funded IUL for long term care rider/Death Benefit, and possibly use for "tax-free" income when market down and not taking much out of market linked retirement accounts.
If you still have a high-deductible health plan, you can still contribute to an HSA. You just contribute it after taxes and then take the deduction on your tax return. I retired early and have my former employer’s retiree health insurance with a high-deductible and an HSA. It’s an additional step, but it’s doable. Leaving that aside, you raise a really important question. How we fund healthcare is bananas. I had to run multiple scenarios to decide whether the high-deductible plan was right for me or the PPO plan. I have to guess what healthcare I’m going to need in 2025 and hope I don’t choose the option that will cost me more over the course of the year. It’s ridiculous.
In my taxable account I bought a defined outcome ETF (Calamos). They have no distributions making it taxable to me only when I sell. Long term capital gains could apply. The downside is the expense ratio and the returns are variable in a small range. Most of my money is in a taxable account or a Roth with a minor amount in a traditional IRA.
@@foundryfinancial CPSJ is one of the tickers. Some have compared these to a fixed annuity without the high(er) fees and being stuck with it without penalty.
If you don't have enough money to fully fund a Roth IRA but have medical expenses, pay for the medical expenses with your credit card. Then withdraw the money from the HSA and invest it in your Roth IRA.
He is incorrect on one point. You cannot contribute as much as you want. There are limits set by the IR S. The single limit is approximately $4,000 a year.
it's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
How does a HSA work if you're on Medicare AND you have Medicare Supplement insurance? Doesn't seem like a viable option. For 2025 the standard deduction for a married couple over 65 is $32,300.
One thing to bear in mind is that social security income is not taxed in a number of states. This is not a blue state red state thing. You need to look up the list of states which do not tax social security income. We're talking about state taxes but it can be significant. I was sure New York state taxes social security but it doesn't. It's actually a pretty good place to retire. Even if you're a MAGA guy you will find plenty of company out in the rural areas.
Barclays offers an AARP Master Card that pays you back 3% on all qualified medical purchases. Including all doctors visits, tests, procedures, medicine and even items like Tylenol at the drug store. A great way allow your HSA to continue compounding without touching any of those funds.
Even indexing the taxation to inflation would be a start. This may not make you feel any better, but the amount of tax collected on SS goes to the SS trust fund and not the general coffers. So it at least can help us old people indirectly.
@@KarenRyan-y9x- Rest easy. No chance of that happening. Trump is all about helping out Americans who have earned it, and SS recipients certainly have. The Republican Congress also sees it this way, so no worries.
I wish I paid attention to this stuff 20 years ago. Words of wisdom.
Good stuff. We keep receipts for any medical expenses more than a few hundred bucks. It's basically a tax-advantaged emergency fund for us, because I know that if we suddenly needed a few months of expenses, I can cut myself a check on the spot.
EXCELLENT! We invested in an HSA before we retired and continue to watch the HSA grow and not touch it. After retirement, we are minimizing our tax liabililty with Roth Conversions to reduce the tax during RMD phase of retirement. We downsized and moved and are using that cash for Roth Convesions for the next 5 years.
I just found your channel and it’s the best channel i have seen on RUclips
Thank you!
I’ve been relying on a traditional 401(k) and taxable brokerage accounts, but I’m realizing that I might be paying more taxes than necessary. I’m now looking into tax-free options like Roth IRAs.
Just found your channel. Very informative. Thank you.
HSA's are an amazing tool, but when deciding on high deductable insurance plan can cause a huge jump in medical expenses while contributing to rhe HSA. Look carefully at your health needs. Generally, deductables don't applied before your insurance pays for prescritions. If you have an HSA, you will pay full price before insurance pays. If you have an expensive drug, it can cost you dearly. Same with other things that the same would apply, like blood work.
Not true at all. With my HDHP I pay less each year than a standard insurance plan. I use my insurance a lot and am still way ahead with my HDHP and HSA.
@@annieva264 Well, IF that's true, you are the exception! I had one, and I used it very little, and it barely broke even, with one expensive medication. However, I was ok with that, becaue for me, it was strickly ro build up an HSA, which would grow for years before needing. That being said, and comparison between regular health plans and HSA's, whether by insurance companies or non-insurance organizations, always come to the conclusion that if you have a lot of heath issues, with doctor appointments, prescriptions, teasts, or hospital visits, HSA's generaly are not best for you!
Yep, I'm saving my medical expenses to turn in 10 years from now for my HSA account.
Corollary to option 4: if not ready/willing yet to downsize and move/sell primary residence: consider a HECM with one of the tenure payment options.
Kevin, great video as always, quick question: at what age do you think is less advantageous to use a roth 401k vs traditional? Or is it more about income? Thanks
More about income level. And thanks!
@foundryfinancial thanks! I only asked about age as you mentioned younger, appreciate the reply.
@@matthewowcarz8259 a question of paying going in vs paying coming out. If you work the arithmetic it's the same, unless real world fluctuations work against one or the other. If you withdraw from an IRA when the market is high there's a tax bite. If you withdraw from a Roth when the market is low you haven't got much of a benefit from the shelter. Your heirs will appreciate the Roth--no taxes.
Also, I read that if you are on medicare (and who isn't after 65) you cannot contribute yo am HSA.
if employer provides HSA, do you have advice to optimize it?
Can spouse who is not employed have their own separate HSA?
Spouse and I both have a max-funded IUL for long term care rider/Death Benefit, and possibly use for "tax-free" income when market down and not taking much out of market linked retirement accounts.
For the love of God, please, make HSA’s available for EVERYONE!
I changed jobs and can’t contribute to my HSA anymore.
I wish it were so, but the government isn't going to want to miss out on the tax revenue.
@@andyh4518that makes no sense. Why would they pass the rules/framework for HSAs then?
If you still have a high-deductible health plan, you can still contribute to an HSA. You just contribute it after taxes and then take the deduction on your tax return. I retired early and have my former employer’s retiree health insurance with a high-deductible and an HSA. It’s an additional step, but it’s doable.
Leaving that aside, you raise a really important question. How we fund healthcare is bananas. I had to run multiple scenarios to decide whether the high-deductible plan was right for me or the PPO plan. I have to guess what healthcare I’m going to need in 2025 and hope I don’t choose the option that will cost me more over the course of the year. It’s ridiculous.
@@andyh4518 good point
@@erzabetf9544 I’m no longer on a High Deductible plan. Good points. HSA’s for everyone would help a bit with our health care costs.
Does Medicare account qualify for HSA?
In my taxable account I bought a defined outcome ETF (Calamos). They have no distributions making it taxable to me only when I sell. Long term capital gains could apply. The downside is the expense ratio and the returns are variable in a small range. Most of my money is in a taxable account or a Roth with a minor amount in a traditional IRA.
Sounds like an MlLP. They’re interesting from a tax perspective.
@@foundryfinancial CPSJ is one of the tickers. Some have compared these to a fixed annuity without the high(er) fees and being stuck with it without penalty.
Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments
Does the municipal bonds returns get added into MAGI in regards to determine IRMAA tax brackets?
Yes. It does. I should have mentioned that.
@@foundryfinancial I was hoping it wouldn't
Cash. After retirement always work for cash
what the hell do you use an hsa for?
If you don't have enough money to fully fund a Roth IRA but have medical expenses, pay for the medical expenses with your credit card. Then withdraw the money from the HSA and invest it in your Roth IRA.
He is incorrect on one point. You cannot contribute as much as you want. There are limits set by the IR S. The single limit is approximately $4,000 a year.
I’m pretty sure I didn’t say as much as you want and the limit is 8k for a family. I’ll review to make sure I didn’t misspeak.
Everything is taxed.. any accumulation of income is taxed..
it is a matter if they will tax you again and again on any wealth building
it's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Do you do retirement plans for one-time fee (not percentage of assets)?
Capital gains from sale of 5year primary residence may affect the retiree couple’s ss benefit?
Question... who is best to advise me on this topic, my financial advisor or accountant? Or other?
Depends on the skill set of those professionals.
How does a HSA work if you're on Medicare AND you have Medicare Supplement insurance? Doesn't seem like a viable option. For 2025 the standard deduction for a married couple over 65 is $32,300.
One thing to bear in mind is that social security income is not taxed in a number of states. This is not a blue state red state thing. You need to look up the list of states which do not tax social security income. We're talking about state taxes but it can be significant. I was sure New York state taxes social security but it doesn't. It's actually a pretty good place to retire. Even if you're a MAGA guy you will find plenty of company out in the rural areas.
Barclays offers an AARP Master Card that pays you back 3% on all qualified medical purchases. Including all doctors visits, tests, procedures, medicine and even items like Tylenol at the drug store. A great way allow your HSA to continue compounding without touching any of those funds.
if if if
tax on 1k isn't worth all this bs.
If trump halts all taxes , then we can carry cement to fix holes on the highways when we see a hole.
😂
We could do it cheaper 😂
Don't underestimate a man that can bankrupt a casino!
I suggest wet plug. I comes in convenient 1 gal and 2 gal containers. Carry a jug of water, a bucket and trowel. Good to go.
@@briandawson1082and get you prefer to vote for Kamala who spent 1 billion and put herself 20 million in debt and lost. 💀🐑🤡😂🤣
Nowhere in the bible does it say "(name your fav. Bible person here)... i retired"
Please wait until that happens then you can complain jeeze
stop. duh
Maybe Trump just stops all income and social security distribution taxes???
Even indexing the taxation to inflation would be a start. This may not make you feel any better, but the amount of tax collected on SS goes to the SS trust fund and not the general coffers. So it at least can help us old people indirectly.
We are just hoping he doesn’t completely dismantle or destroy SS.
@@KarenRyan-y9x Trump isn't a dictactor. That can only be done through Congress and they would not do that.
@@KarenRyan-y9x did you vote for Trump.
@@KarenRyan-y9x- Rest easy. No chance of that happening. Trump is all about helping out Americans who have earned it, and SS recipients certainly have. The Republican Congress also sees it this way, so no worries.