Page 20 THE MALDEN ADVOCATE–Friday, December 1, 2023 avy n v y y avvyavvy S oravvy S ioreniioor io iori by Jim Miller How a Health Savings Account Can Boost Your Retirement Savings Dear Savvy Senior, I’m interested in contributing to a health savings account to help boost my retirement savings but would like to better understand how they work. What can you tell me? Almost 60 Dear Almost, A health savings account, or HSA, is a fantastic fi nancial tool that can help you build up a tax-free stash of money for medical expenses now and after you retire. But to qualify, you must be enrolled in a high-deductible health insurance plan. Here’s an overview of how they work and how you can open one. HSA Rules HSAs have become very popular over the past few years as the cost of health care continues to skyrocket, and because more and more Americans have high-deductible health plans. The great benefi t of a HSA is the triple tax advantage that it offers: Your HSA contributions can be deducted pretax from your paycheck, lowering your taxable income; the money in the account grows tax-free; and if you use the money for eligible medical expenses, withdrawals are tax-free. And if you change jobs, the HSA moves with you. To qualify, you must have a health insurance policy with a deductible of at least $1,500 for an individual or $3,000 for a family in 2023. In 2024, the deductible rises to $1,600/individual or $3,200/family. This year, you can contribute up to $3,850 if you have single health insurance coverage, or up to $7,750 for family coverage. Next year (2024) you can contribute signifi cantly more – up to $4,150 for single coverage or up to $8,300 for family coverage. And people age 55 and older can put away an extra $1,000 each year. But you cannot make contributions after you sign up for Medicare. The money can be used for out-of-pocket medical expenses, including deductibles, co-payments, Medicare premiums, prescription drugs, vision and dental care and other expenses (see IRS.gov/pub/irs-pdf/p502.pdf, page 5, for a complete list) either now or when you retire for yourself and your spouse as well as your tax dependents. Unlike a fl exible spending account, an HSA doesn’t require you to use the money by the end of the year. Rather, HSA funds roll over year to year and continue to grow tax-free in your HSA account for later use. In fact, you’ll get a bigger tax benefi t if you use other cash for current medical expenses and keep the HSA money growing for the long term. Be sure to hold on to your receipts for medical expenses after you open your HSA, even if you pay those bills with cash, so you can claim the expenses later. There’s no time limit for withdrawing the money tax-free for eligible medical expenses you incurred any time after you opened the account. But be aware that if you do use your HSA funds for non-medical expenses, you’ll be required to pay taxes on the withdrawal, plus a 20 percent penalty. The penalty, however, is waived for those 65 and older, but you’ll still pay ordinary income tax on withdraws not used for eligible expenses. How to Open an HSA You should fi rst check with your employer to see if they off er a HSA, and if they will contribute to it. If not, you can open an HSA through many banks, brokerage fi rms and other fi nancial institutions, as long as you have a qualifi ed high-deductible health insurance policy. If you plan to keep the money growing for the future, look for an HSA administrator that off ers a portfolio of mutual funds for longterm investing and has low fees. Some of the top-rated HSA providers in 2023 are Lively, HealthEquity, OptumBank, Fidelity, HSA Bank and Bank of America. After setting up your HSA plan, adding money is pretty straightforward. Most plans let you do online transfers from your bank, send checks directly, or set up a payroll deduction if off ered by your employer. To access your HSA funds many plans, provide a debit card and most allow for reimbursement. Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is a contributor to the NBC Today show and author of “Th e Savvy Senior” book. OBITUARY Sandra Lee (Himmelwright) McCowan Of Melrose, M assachusetts. Passed away peacefully at Brooksby Village in Peabody, Massachusetts on November 27, 2023 at the age of 79. She had the amazing care of the Brooksby Village Team and also Care Dimensions Hospice of Danvers, Massachusetts. “Sandy” was born December 4, 1943 in Malden, Massachusetts to the late Walter P. Himmelwright and Virginia B. (Thomson) Himmelwright. She attended Malden High School and went onto Rittners School of Floral Design in Boston, Massachusetts graduating fi rst in her class. Sandy’s most proud accomplishment was her family. She married the love of her life, the late Douglas J. McCowan of Malden, Massachusetts. They started their beautiful family in Malden, MA before moving to Melrose, MA. They were the proud parents of four children: David J. Mc~ LEGAL NOTICE ~ Cowan and his wife Susan of Scituate, Massachusetts; Jeffrey P. McCowan and his wife Andrea of Danvers, Massachusetts; Karin G. (McCowan) Torres and her husband Frederic of Stow, Massachusetts; James D. McCowan and his wife Kate of Melrose, Massachusetts. She was the loving “Grandy” to her grandchildren Sarah McCowan, Kelly McCowan, Anna McCowan, Meghan McCowan, Macie McCowan, Emma Torres, Alice Torres, Lea Torres, Marie Chambaud and James McCowan. Sandy is survived by lifelong friend Marcia E. (Knight) Kilpatrick of Malden, Massachusetts. She was a talented and PUBLIC NOTICE CITY OF MALDEN LICENSING BOARD A Public Hearing will be held before the Licensing Board for the City of Malden at City Hall, 215 Pleasant Street, Room 108, Malden, MA 02148 on December 12, 2023 at 6:00 p.m. regarding the application of VHN Corporation D/B/A Malden Center Fine Wines, 220 Pleasant Street, Malden, MA For a Transfer of License to sell Alcoholic Beverages as an Off Premises S15 Package Store All Alcoholic Beverages from E&F Liquors, Inc. d/b/a Malden Center Fine Wines. All interested parties will be given an opportunity to be heard. Lee A. Kinnon, Chairman Andrew Zeiberg, Member Paul Lee, Member Dated: December 01, 2023 ~ LEGAL NOTICE ~ dedicated fl orist. She worked over 50 years at Martin’s Flower Shop in Malden, Massachusetts. She started as a child working in the green houses and transitioned to become a fl orist. She had a unique gift of working with the elderly population. She was the Activities Director at the McFadden Manor in Malden, Massachusetts. After raising her children, she went back to be the Activities Director at Epoch Senior Living in Melrose, Massachusetts. She had a close relationship with the residents and shined using her craft skills and personal skills to keep the residents always smiling. Sandy was a very involved member of her local community. She was a longtime parishioner at Most Blessed Sacrament Church in Wakefi eld, Massachusetts. It was her passion to volunteer at the church’s community events. She also volunteered at Bread of Life in Malden, Massachusetts. Visiting hours will be held PUBLIC NOTICE CITY OF MALDEN LICENSING BOARD Notice is hereby given that a Public Hearing will be held before the Licensing Board for the City of Malden at City Hall, 215 Pleasant Street, Room 108, Malden, MA 02148 on December 12, 2023 at 6:00 p.m. regarding the application of USA Ramen, Inc D/B/A Zuru Zuru Ramen & Donburi, 74 Pleasant Street, Malden, MA. Application is being made for an on premises S12 Restaurant Wine and Malt Beverages 7 day license. All interested parties will be given an opportunity to be heard. All interested parties will be given an opportunity to be heard. Lee A. Kinnon, Chairman Andrew Zeiberg, Member Paul Lee, Member Dated: December 01, 2023 on Sunday, December 3rd, 2023 at Gately Funeral Home, located at 79 West Foster Street, Melrose, Massachusetts, from 2:00 p.m. to 5:00 p.m. A memorial mass will be held on Monday, December 4, 2023 at 10:00 AM at Incarnation Parish, located at 429 Upham St, Melrose, MA 02176. A graveside service will be to follow at Puritan Lawn Memorial Park and Cemetery 185 Lake Street, Peabody, MA 01960. Following the graveside service, there will be a Celebration of Life in Sandy’s honor at a location to be determined. In lieu of fl owers, the family kindly requests donations to Bread of Life in Malden, Massachusetts at http://www. breadoflifemalden.org/donate.
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