Third – it’s still important to focus on baby boomers and Gen Xers. According to the previously mentioned survey, HSA owners aged 50 and older hold almost $53 billion in HSA assets. Many individuals believe they can no longer have an HSA once they retire and enroll in Medicare. This is not true, even though individuals can’t contribute to an HSA once they enroll in Medicare, they can still benefit from having an HSA by: • Reimbursing themselves for qualified medical expenses previously paid out of pocket; • Paying for certain Medicare premiums; and • Continuing to pay for qualified medical expenses. How can HSAs help retired individuals? HSAs should be considered part of the overall asset portfolio for long-term retirement planning. According to a 2019 CNBC study, a healthy 65-year-old couple retiring in 2019 will need approximately $390,000 to cover Employers will generally select a health insurance provider and use the suggested HSA provider paired with the insurance plan. This may make it easier for employees to open an HSA and for the employer to make contributions. healthcare expenses. HSAs can play an integral role in paying for these expenses. And it’s not just healthcare expenses retirees need to worry about. Individuals still need to pay for everyday expenses (e.g., food, utilities) after retirement. Luckily, once HSA owners turn 65, they can take taxable but penalty-free HSA distributions to pay for nonqualified expenses. Summary Reviewing these points, consider how your organization can help the community by building new relationships and strengthening existing relationships with local businesses. HSAs can provide an affordable solution to your organization and your clients. And while starting a new HSA program can seem daunting, especially if you have limited staff, you don’t have to do it alone. Ascensus offers multiple services – including document, administration, and consulting services. Contact your Ascensus sales representative today to learn more about this amazing opportunity. September • October 2022 9
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