By Sandra Block
From Kiplinger’s Personal Finance
A health savings account provides one of the most-effective strategies to save for health care in retirement.
Contributions are pretax (or tax-deductible, if your HSA isn’t employer-sponsored), the funds grow tax-deferred, and withdrawals are tax-free for qualified medical expenses. There are no income limits on HSAs, but you must be enrolled in a qualified high-deductible health insurance plan to contribute. In 2023, the health plan must have a deductible of at least $1,500 for self-only coverage or $3,000 for family coverage.
Maximum contributions are adjusted annually for inflation. In 2023, you can contribute up to $3,850 for self-only coverage or $7,750 for family coverage. If you’re 55 or older, you can contribute an additional $1,000….