URPG Newsletter - Winter 2019


Hidden Gem: HSAs in Retirement

When saving for retirement, you're probably aware of the benefits of using tax-preferred accounts such as 401(k)s and IRAs. But you may not be aware of another type of tax-preferred account that may prove very useful, not only during your working years but also in retirement: the health savings account (HSA).

HSA in a nutshell

An HSA is a tax-advantaged account that's paired with a high-deductible health plan (HDHP). You can't establish or contribute to an HSA unless you are enrolled in an HDHP. An HDHP provides "catastrophic" health coverage that pays benefits only after you've satisfied a high annual deductible. However, you can use funds from your HSA to pay for health expenses not covered by the HDHP.

Contributions to an HSA are generally either tax deductible if you contribute them directly, or excluded from income if made by your employer. HSAs typically offer several savings and investment options. Your employer will likely indicate which funds or investment options are available if you get your HSA through work. All investments are subject to market fluctuation, risk, and loss of principal. When sold, investments may be worth more or less than their original cost.

Withdrawals from the HSA for qualified medical expenses are free of federal income tax. However, money you take out of your HSA for nonqualified expenses is subject to ordinary income taxes plus a 20% penalty, unless an exception applies.

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Dear friends,

I trust that you had a wonderful holiday season. If you are like me, the spring weather cannot come quick enough!

I am happy to let you know that we have officially released our URPG introductory video. The video is on the first page of our website at www.myurpg.com Please let us know what you think about our video!

Additionally, the events page on our website www.myurpg.com/events lists information regarding our upcoming events scheduled for 2019. We'd love to know what event(s) you'd be interested in.

Lastly, you know at URPG, we specialize in personal retirement planning only. We have narrowed down our focus to 26 topics that we feel should be addressed during your retirement planning process. We call this our WealthGuide. We will continue to update our WealthGuide during our client meetings with you. If you have any questions, please let us know!

With best regards,