What is HSA55?
HSA55 is specifically designed and customized for ages 55 and older who are now faced with employer-sponsored retiree benefit plans that are increasing in costs, diminishing in benefits, or disappearing altogether. HSA55 is a focused retiree benefit savings plan that capitalizes on the little known "accelerated" HSA contribution schedule offered to tax payers 55 and older...the Baby Boom generation.
There is no other financial tool available to the American workforce--including 401K plans--that allow for payment of healthcare expenses on a tax-free basis with the simple swipe of a debit card. There is no financial instrument other than an HSA that offers tax-free contributions, tax-free investment earnings, accelerated contributions for those 55 and older--and--tax-free withdrawals to cover future Medicare premiums, co-pays and deductibles, and long-term care insurance.
The experts at Flex immediately recognized the financial power of HSAs to help Baby Boomers prepare now for future Medicare expenses, and have introduced HSA55 to assist Baby Boomers in navigating their way through the accelerated tax-free contribution schedule and investment options. Those who sign up at age 55 can save more than $60,000 in ten years time, that can be withdrawn tax- and penalty-free to cover Medicare Part D expenses and long-term care.
How does it work?
HSA55 starts with a qualified individual or family health insurance policy, providing comprehensive coverage designed to reduce premiums substantially, from one of the reputable carriers we represent. These premium savings can then be contributed tax-free into an HSA-up to the maximum contribution.
HSA55 participants can put away even more money in tax-free "catch up" contributions-above and beyond the maximum deductible-to help pay for retirement healthcare expenses, including the required premiums, deductibles and co-insurance (refer to the
Contributions section).
Over 10 years, a 55-year-old individual who makes the maximum annual HSA contribution can contribute an addition $9,900 in catch-up contributions added to their $59,800 HSA contribution. This totals $66,200 and does not include any adjustment for inflation. HSA55 offers a number of different investment options for these funds. Obviously, HSA55 is a very important retirement planning tool.