Health Savings Accounts-Retirement Option for Farmers
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July 11, 2022
The HSA allows a deduction up-front, the earnings are tax-free and distributions are tax-free as long as the proceeds are used for qualified medical expenses. These expenses also include Medicare premiums or any qualified expenses incurred before retirement as long as you have receipts. If you do not have qualified expenses farmers can fully fund their HSA’s but not take distributions until retirement.One possible issue to be considered is that if an HSA is inherited it has to be cashed in within one-year and if there are no qualified expenses to be reimbursed income tax will result.