When discussing retirement accounts, the health savings account (HSA) is often overlooked in favor of the more common 401(k) and individual retirement account (IRA) options. Even though HSAs weren’t created with retirement in mind, they can still be essential to anyone’s overall financial strategy. The same is true for the elderly in particular.
There are numerous reasons to move to a Roth IRA: avoiding the possibility of greater taxes in retirement, having no RMDs, and cheaper markets.
Consider a Roth IRA as an excellent retirement vehicle. Contributions are not tax-deductible, but withdrawals are tax-free, and this affords the prospect of substantial tax-free investment returns over the account’s lifespan.
Your retirement savings are there to help you get through what could be decades of reduced income, so it’s usually not a good idea to tap into them before you need to. This holds true even if you have a lot of credit card debt that you need to reduce.
If you are approaching retirement age, you may be interested in the changes implemented due to a government funding bill.
The Secure 2.0 retirement provisions, numbering in the dozens, were included in the omnibus spending bill that passed Congress last week. The reforms are meant to benefit people who are saving for or are already in retirement, but some may be of particular use to those on the cusp of retirement.
Without a 401(k) via your employer, saving enough money for retirement can be difficult, but it is certainly doable. If you want your money to grow tax-free, you can open a savings account or a Roth IRA instead. If 2022 is still a year in which you hope to contribute to your retirement fund, here are options to consider.