Craig Toberman Featured in Morningstar on How A Proposed Tax Bill Could Boost HSAs for Retirement
A recent Morningstar article via MarketWatch, “This popular healthcare savings strategy could get more lucrative under GOP tax bill,” highlights proposed changes to Health Savings Accounts (HSAs) under the GOP tax plan. These updates could make HSAs even more attractive for long-term financial planning.
Proposed changes include:
- Higher annual contribution limits
- Expanded eligibility for more account holders
- Greater flexibility in how funds can be used
“If passed, it could help higher-income clients shelter more income and give younger families and small-business owners more room to save aggressively for (inevitable) future healthcare costs,” said Craig Toberman, CFA, CPA, CFP®, partner at Toberman Becker Wealth.
Toberman added:
“HSAs are already one of the most tax-efficient retirement-planning tools, and this bill could take them to the next level.”
Toberman regularly advises clients to view HSAs as a tool for long-term, tax-efficient retirement planning.
“Healthcare becomes one of the largest expenses later in life,” he said. “HSAs offer a rare triple-tax advantage: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free.”
With proposed increases to contribution limits and broader eligibility, HSAs could soon become even more powerful for those planning ahead.
Curious what these HSA changes could mean for you?
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Craig Toberman is a Partner at Toberman Becker Wealth – a fee-only, fiduciary financial advisor based in St. Louis. He assists families and businesses with strategic financial planning and long-term wealth management. He has over a decade of experience in financial services and has crafted custom financial plans for hundreds of families and businesses.