HSAs can save you money and aid in your retirement planning, regardless of where you are in your health journey. They’re more flexible than FSAs and can always be used to pay for dependents’ medical expenses, regardless of insurance coverage.
The total cost for being hospitalized with Covid-19 ranges between $38,221 and almost $1 million. Like any medical issue, this range depends on many factors, including: where you’re receiving treatment, the severity of your case, and how long you stay in the hospital.
A survey of 1,000 randomly selected U.S. Adults was conducted to gauge physical and financial health decisions across the U.S. Rising healthcare cost, and the short-term financial impact from COVID-19, have reinforced healthcare as a top priority for employees. Read the full report.
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On May 10, 2021, the Internal Revenue Service announced the 2022 HSA contribution limits. For 2022, HSA-eligible account holders are allowed to contribute $3,650 for individual coverage and $7,300 for family coverage. Both coverage levels are a $50 increase for individuals and $100 for families from 2021 HSA contribution limits. If you are 55 years or older, you’re still eligible to contribute an extra $1,000 catch-up contribution.
If you’re healthy, you actually need to save more. And regardless of where you fall on the healthy spectrum, the truth is: Americans are living longer and the cost of healthcare is rising. And this trend is expected to continue. So what can you do about it? First, understand what this cost estimate entails.
What if you used your HSA to save for retirement? That’s precisely the investment advice many wealth managers are giving. And if that’s your approach, then you'll want as much of your HSA funds invested in the market as possible. So you can earn as much money as possible. Which means any fees or minimum investment thresholds could cost you thousands of dollars in the long run.
Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.