RETIREMENT

Covering the Medicare gap

Medicare will not cover all medical expenses incurred after retirement. The average American couple will face $220,000* in out-of-pocket health care costs post-retirement. An HSA, when managed properly, can fill the Medicare gap. Additionally, an HSA can always be used to pay for dental, vision and hearing expenses. These expenses may or may not be covered by Medicare.

HSAs vs. other retirement accounts

HSAs provide the greatest amount of tax relief of any account type for the following reasons:

1. Deposits are made pre-tax
2. Earnings are not taxed
3. When used for qualified medical expenses, withdrawals are not taxed

*Source: Fidelity Investments