Smart Saving: From IRA to HSA

Jun 5, 2023
Est. Read Time: 3 minutes

Did you know that the average couple retiring at age 65 will need $280,000 to cover health care and medical costs in retirement?


It’s one of the most significant costs for those of advanced age. A little planning now, however, will go a long way to a healthy, productive, and prosperous future.


Why HSAs?

A popular trend over the past decade has been the rise of health savings accounts (HSA).

These savings accounts can provide both flexibility in medical care (and choices) and significant medical savings for taxpayers in the United States. This is particularly true for those enrolled in a high-deductible health plan currently.

An HSA (health savings account) allows for tax-free withdrawals if the money is used for qualified medical expenses. This includes uses such as hearing aids, dental work, and prescription medicine. You can even keep your HSA funds to use later in life after you retire.

There are numerous advantages to setting up an HSA and the IRA Club’s HSA plan is perfect for the tax-conscious, long-term investor.  Self Directed HSAs offer exciting investment opportunities just like Self Directed IRA. There are many advantages benefits, for example, using a Self Directed IRA for House Flipping.


Explore some of the many benefits below and contact an IRA Club representative today to learn how you can get started on a healthier and more financially secure future:
1) Tax-deductible Contributions
Any funds that are contributed to a Health Savings Account will not be subject to federal income tax.

2) Control & Flexibility

The unused funds rollover year after year.  Why not invest those funds? When you invest using your HSA, a high level of control is available, providing you the choice you need to prioritize health care costs for return on investment. You can use your Self Directed HSA to invest in real estatelife settlements, private placements, and even private lending.

3) Tax-free Growth

Self Directed HSAs provide account growth without the tax burden, ultimately providing greater portfolio growth.

4) HSA Rollovers
The most significant benefit to HSA accounts from an investing perspective is that any and all contributions roll over from year-to-year.

5) Withdrawing Funds

HSA investors can withdraw the funds for qualified medical expenses without penalty or tax at any age. The IRA Club will provide you with a Visa debit card for quick and easy use.

If you choose to withdraw funds for non-qualified medical expenses after age 65, you will need to pay taxes on the amount withdrawn.

6) Required Minimum Distribution
HSAs are an ideal long-term investment because there is no required minimum distribution so you can ensure your money keeps growing.

7) Funding an HSA

For 2019, the maximum contribution is $3,500 for an Individual and $7,000 for a Family Plan. Health Savings Accounts can be funded using personal funds.

The Health Opportunity Patient Empowerment Act of 2006 made it possible to make a one-time, penalty- and tax-free rollover of funds available in their Individual Retirement Account (IRA) to a Health Savings Account (HSA).

8) Tax-Free Withdrawals

Should a medical expense arrive, HSA accounts can be used to cover those costs without the tax burden of an IRA.

9) Portfolio Diversity
In addition to having an IRA and a 401(k), investors can improve their portfolio diversity as they can also have a health savings account and use it as an investment vehicle.

10) Lower Fees

The IRA Club provides some of the lowest fees in the industry and a knowledgeable, courteous, and professional level of service.

Are you a tax-conscious, long term investor considering opening a Health Savings Account?
Contact The IRA Club to learn more.


For information about the Self Directed IRA or Solo 401k, call IRA Club at 312-795-0988

IRA Club offers no investments, products, or planning services. Therefore, please consult your attorney, tax professional, financial planner, and any other qualified person before making any investments.

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