GET YOUR RETIREMENT BACK ON COURSE

The pandemic demonstrated that even otherwise healthy people can suffer from devastating illnesses, along with catastrophic costs that can decimate retirement savings. One of the most effective ways to save for those costs while you’re still working is to stash money in a health savings account. To qualify for an HSA, you must enroll in a high-deductible health insurance plan, with a deductible of at least $1,400 for an individual account or $2,800 for family coverage. In 2021, you can save up to $3,600 in an HSA for individual coverage or $7,200 for family. Workers 55 and older can contribute an additional $1,000. Contributions are made pretax, the funds grow tax-deferred in the account, and withdrawals are tax-free for qualified medical expenses. You can’t make contributions to your HSA once you enroll in Medicare, but you can use money in the account to pay for Medicare parts B and D, Medicare Advantage, and other out-of-pocket expenses such as over-the-counter drugs.