5 Tips To Know To Retire Earlier – GOBankingRates

December 15, 2021 by No Comments

An HSA is one of the most underrated retirement savings vehicles available. The intended use of an HSA is generous enough, as it is essentially triple tax-free. First, you get a tax deduction on any contributions you make, and you also benefit from tax-free growth of your investments while inside the account. Lastly, when your distributions are used for qualifying medical expenses, they are also tax-free. However, there’s also a retirement planning angle to an HSA. If you wait until age 65, you can withdraw money from an HSA for any purpose at all, without any taxes or penalties. Although you can’t use the money for general purposes at age 45, for example, without paying a 20% penalty, you can use other funds to bridge the gap from your early retirement until age 65 and then have a triple tax-free retirement nest egg waiting for you in the form of your HSA. 

Good To Know: All the States That Don’t Tax Social Security

Source: https://www.gobankingrates.com/retirement/planning/5-tips-to-know-to-retire-earlier/


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