Proposed Changes to HSAs

[00:00:00] Speaker B: Hi there. Welcome to another episode of Investment Insight presented by McKay Wealth Advisory. I'm Bradley Covert sitting down with Brent McKay. Brent, we're seeing some exciting new changes for Health Savings Accounts. Can you tell us a little about that? Right. [00:00:11] Speaker A: So one of the cool things about the new tax bill proposed is allowing people on Medicare to actually save money in Health Savings accounts. So historically, the only people that could use the Health Savings account in recent history were people that had a high deductible, high insurance plan. And so one of the big proposals out there is to expand access to Health Savings accounts for a broader group of people. And so what's really nice about Health Savings Account is you put the money in, you don't have to pay taxes on what you put it in. And then when you spend it on qualified health care purchases, you don't have to pay taxes on that money. So it's a truly account where you get a tax deduction and when you spend it, you don't pay taxes. [00:00:49] Speaker B: Wow. [00:00:50] Speaker A: Now, current law states with Health Savings Accounts that a spouse can maintain an hsa. However, if you were both to die when your kids is a beneficiary and there's still money in the hsa, they do have to pay taxes on that money when it comes out. And so the money does go tax free for health care expenses and it can be used for a plethora of things. We've seen people buy, you know, exercise equipment or Tylenol, and there's a very wide range of what you can use for Health Savings Account. But it looks like this is going to be a great opportunity now for retirees for another option if this bill becomes law where they can actually put money into Health Savings Account and then spend it on, you know, their Tylenol or their prescription drugs or whatever they need. And so it's a great opportunity to get some more tax savings in the future. Wow. [00:01:37] Speaker B: That's exciting news. Hopefully that's something that we can take advantage of. Thank you for joining us today for another episode of Investment Insight. Be sure to subscribe and like us on Facebook and YouTube to stay up to date with all of our educational content. Thanks for joining us. We'll see you next time.