Health Savings Accounts are the most under utilized tax advantaged funding vehicle available for tax-deductible contributions up to $3,400 for individuals, $6,750 married couples and an additional $1,000 for those over age 55. The IRS also allows a one-time maximum tax-free transfer of $6,750, (or $7,750 if you’re age 55 or older), once in your lifetime from an IRA to an HSA account. Keep in mind that you can’t transfer and make an annual contribution in the same tax year. The tax-free distributions from the HSA account can only be used for medical expenses and insurance premiums for long-term care, disability, medical and Medicare. One huge benefit is the ability to use your HSA account at any time. There’s no waiting until age 59½ like other qualified retirement accounts. The distributions are tax-free and are not includable in the provisional income test for Social Security. The odds are that you will use this account throughout your lifetime for medical expenses and related insurance premiums. Roth IRAs are not tax deductible, but they accumulate tax deferred and distributions are tax-free and are not includable in the provisional income test for Social Security benefit taxation. The maximum annual contribution for individuals is   Read more…