How could an HSA help me save for retirement?

Host: How could an HSA help me save for retirement? Bob Hurley: Health Savings Accounts are a very good vehicle to help you save money for your retirement. The whole idea behind these accounts is that you are going to have a Higher Deductible Health Insurance Plan which is going to reduce the amount of your monthly premium that you are sending off to the Health Insurance Company and then you are going to send some of that money into your savings account. In that, that account remember has significant tax advantages, it's tax-free going in, it's tax-free as it grows and if you need it, you can pull it up for healthcare related expenses tax-free. So it's a very powerful savings vehicle and so if you are putting money into that account for 10 or 15 or 20 years, you are going to have some very nice cash accumulation if you are somebody that's fairly healthy that hasn't had to utilize a lot of care and pull money out of that account.Now as you move in your retirement that account is going to go with you. If you own it, you own that money and so once you hit retirement you can keep it set up as a Healthcare Funding Account and use it for healthcare related expenses not covered by Medicare or you can actually pull that money out and use it for whatever you need it for and simply pay whatever the prevailing tax rate it is at that time. So it's a very, very good savings vehicle for retirement, has a lot of flexibility certainly, primarily, flexibility towards your healthcare related expenses but then a lot more broader flexibility after you hit your Medicare age.