Savers need to be strategic when using health savings accounts for retirement, according to Titus.
Individuals who retire before age 65 when they are eligible for Medicare will have health care premiums to pay. That can be done through their health savings accounts, in addition to covering other health care expenses, Titus said.
“You’re doing that with pretax dollars, so it’s like you’re getting a discount on all the services and premiums that you pay,” Titus said.
Savers who plan to hold onto health care savings accounts for retirement should also be aware that they have the ability to roll their balance into another health savings account once a year, Titus said.
You need to make sure the transfer is a qualified rollover, Titus said. But it can pay to shop around to find an account with more attractive fees and investments for your money, he said.
“Very few people actually know about that and do that, and it’s probably one of the most powerful options that somebody can utilize,” Titus said.