Health Savings Account (HSA): Helpful for Older People?

The Health Savings Account (HSA) is an amazing tool that a lot of people have been talking about. It is meant to help you save money on insurance and make your life simpler, maybe even help you be healthier.

But do HSAs work just as well for older Americans? The answer depends on your age.

Let's start with someone older than 65. Once you turn 65, you are eligible for Medicare, and that means you can no longer contribute to an HSA. If you had an HSA before you turned 65, a very interesting thing happens.

The HSA, which was basically an account that could only be used for medical expenses, suddenly becomes an Individual Retirement Account (IRA). It instantly changes status when you turn 65.

This is a very intriguing concept for all of us who are younger than 65. You already know that there is no "use it or lose it" condition for an HSA. You keep accumulating that money forever, you do not lose it at the end of each year.

So, if you're not sick very often, you may accumulate a lot of money in the HSA. Then, once you turn 65, you can start pulling money out of it each year as income. Your withdrawals are taxable, but won't it be nice to have another stream of income when you retire. Think of it as your "Healthy Life Reward Account." The healthier you are in your life, the more money you'll have left in your HSA. It could be tens of thousands of dollars!

If you are over 55 but younger than 65, you get even more benefits for your HSA. You are eligible for something called "catch up contributions." This means that you can put more money into this tax-deferred account than those of us under 55.

In 2005, you can put $600 more than you health insurance policy deductible, and the amount of that catch-up contribution increases every year until it hits $1,000 in 2009. If I were you, I'd take good advantage of those catch-up contributions. Tax-deferrals are always nice to have when tax time comes around.

Daryl Kulak is the author of the book "Health Insurance Off the Grid - A Wonderful Way to Use Alternative Medicine and Save Money on Insurance Using the New Health Savings Account (HSA)." The book provides a nine-step plan to get your self-employed or small business health insurance costs under control using a unique approach you won't find anywhere else. The book is available for sale as an e-Book or paperback at the Website http://www.healthoffthegrid.com

What Is Health Insurance?

What is health insurance and why do I need it? Health insurance protects you and... Read More

Life Insurance Beneficiaries

Naming a beneficiary for your life insurance policy can be a difficult decision to make,... Read More

UK Young Driver Motor Insurance - Build Your Own No Claims Bonus or Insure through Your Parents

For may young drivers, affording the costs of motor insurance is an issue. With first... Read More

Vehicle Insurance Online is a Convenient Way to Get Insurance Cheap

Online comparison shopping is a convenient way to get cheap insurance for your auto. For... Read More

Home Insurance Rates in Northern Ireland

A recent survey took the most popular type of home in the UK, the three-bed... Read More

Long Term Care Insurance

Long Term Care Insurance is needed in the event that a person becomes physically disabled,... Read More

Which Car Should You Own To Keep Your Insurance Rates Most Affordable?

Do you consider the cost of insurance before you buy your dream car? You should.... Read More

Who Else Wants to Understand Travel Insurance Policy Language?

Aren't all travel insurance plans basically the same?No. When you read travel insurance policy language,... Read More

Mortgage Insurance Plans: How Good Is Yours?

Mortgage insurance, to pay off a mortgage, is something you'll inevitably be asked to take... Read More

What Are The Differences Between A Cancellation Notice And Non-renewal Notice?

OK, you take that stroll down to the mailbox excitedly as you do everyday hoping... Read More

What Answers To Questions For A Home Insurance Price Quote Will I Need To Know?

Lets face it, finding the best home insurance price quote can be an aggravating task... Read More

All Auto Insurance is Not Created Equal!

Contrary to what you may have heard all auto insurance is not created equal. A... Read More

What Does Buildings Insurance Cover?

You will find that your lender will insist that you have this cover when you... Read More

Guide to Car Insurance

Here is a useful guide to car insurance. Buying car or motor insurance is important... Read More

Medical Bills - Evaluating Your Personal Injury Insurance Claim

The value of a personal injury claim has a direct relationship to the amount of... Read More

Know Your Own Worth: A Practical Insight Into Covering Up

Almost anything can be insured these days: breasts, legs, your goldfish, your mental health, physical... Read More

The Best Rates on Life Insurance

Finding the best rates on life insurance is not difficult any longer. With a few... Read More

Business Insurance; Information you will need

When you start a small business you will need to have insurance. You would be... Read More

Understanding How Your Credit History May Affect Your Car Insurance Coverage

Many personal auto insurance companies consider your credit information when determining how much premium to... Read More

Term Life Insurance Help

Life insurance can be a very scary thing. If you buy insurance when you're 30,... Read More

Photography Insurance-Insurance for the Photographer

Part and parcel of establishing your own photographic business is establishing your own legal entity.... Read More

Keys To Controlling The Future of Health Care

Several key changes are necessary to get control of the costs associated with the run... Read More

Terrorism: Acts of Terrorism: When Will Insurance Respond?

Insurance policies provide financial protection in a broad range of circumstances but each type of... Read More

Discount Life Insurance Will Give You The Best Protection You Need

There is always a chance that there is a better deal somewhere else, no matter... Read More

Need Low-cost Temporary Family Health Insurance?

Many families will find themselves without medical coverage at some point in their lives. So,... Read More

10 Ways to Lower Your Auto Insurance

Nowadays, auto insurance is really expensive. A typical insurance policy can cost a few hundred... Read More

Does an HSA Cover Alternative Medicine?

A Health Savings Account (HSA) does not really cover alternative medicine. However, there is a... Read More

The Immorality of Guarantee Issue Health Insurance

While there are genuine debates about whether privatized health insurance or nationalized health insurance policies... Read More

Cheap Term Life Insurance is Available Everywhere

Cheap term life insurance is easier to get than most people think. Dealing with a... Read More

Choosing Long-Term Care Insurance

A little over sixty percent of the folks who reach 65 years of age will... Read More

California Catering Truck Insurance

Catering truck insuranceNot many agents/brokers write catering truck insurance as they don't have a contract... Read More

Tips On How To Save When Buying Car Insurance

If you want to save money when you purchase your car insurance here are a... Read More

Term Life Insurance and Permanent Life Insurance

Term insurance and permanent insurance are two basic types of life insurance. Term life insurance... Read More

Choosing the Best Life Insurance Option for You

Life insurance in the UK is becoming more and more popular with many people now... Read More

Car Insurance Monitoring for Discounted Insurance Rates - Privacy Devouring Monster Eating Us One Bi

For a price, would you let car insurer along for the ride? - asks a... Read More

A Free Term Life Insurance Quote Is Only Easy To Obtain

By searching online for life insurance, you can get a free term life insurance quote... Read More

Health Savings Accounts

Most people with health insurance, especially employer paid health insurance, really don't know what their... Read More

Japanese Overseas Travel Insurance

If you are an expatriate planning on long-term residence in Japan you can, after a... Read More

How To Take The Guesswork Out Of Buying Term Life Insurance

Protecting your family is the single most important thing any individual can plan for during... Read More

Insurance Adjusters How They Work And How They Think

Here comes the insurance adjuster. Is he overly friendly? If so, watch out! It's OK... Read More

Do Discount Fees for Medical Service Programs Really Work?

Having a health insurance policy provides a great sense of security for many families. Most... Read More

Finding California High Risk Truck Insurance

California high risk truck insuranceIf your are in need of California high risk truck insurance... Read More

Health Insurance Quotes Online - Tips On Finding a Good Provider

Since 2001, major health insurance providers have been allowing consumers to buy policies online. Through... Read More

Gain An Advantage Over Your Competition By Controlling The Cost Of Your Health Insurance

As many of us expect, the New Year will bring both tremendous challenges and opportunities... Read More

Types of Long Term Care Insurance

Regardless of what some people might think, medical insurance will not cover the expenses and... Read More

Disability Insurance For The Long Term

Disability insurance covers you for an extended period of time. Should you be injured or... Read More

Life Settlement: Towards A Free Market for Life Insurance

The Life Settlement market is all about providing due access to needed cash from existing... Read More

Independent Insurance Agents Unite! Insurance and Financial Discussion Forums are all the Rage

The online discussion forum has emerged as the medium of choice for many Americans. Most... Read More

Life Insurance Basics

One of the most important things you can do as parents is to ensure the... Read More

The Surety Bond Domino Effect

I have written many articles about the hard surety bond market. To my surprise many... Read More