A new GOP tax proposal is poised to dramatically expand Health Savings Accounts (HSAs), potentially unlocking access for an additional 20 million Americans. If enacted, the legislation would:

• Allow Medicare Part A enrollees to contribute to HSAs.
• Extend eligibility to those on high-deductible ACA marketplace plans.
• Permit tax-free withdrawals for fitness and wellness expenses.
• Expand spousal catch-up contributions, making it easier for couples to build savings together.

These changes could significantly widen the scope of HSAs, which are already held by more than 60 million people with $147 billion in assets. With new rules on the horizon, HSAs may evolve from being primarily healthcare accounts into cornerstones of retirement and financial wellness strategies.

Why HSAs Matter More Than Ever

HSAs are one of the few financial tools that provide a triple tax advantage:

1. Contributions are tax-deductible.
2. Earnings grow tax-free.
3. Withdrawals for qualified expenses are tax-free.

This makes them uniquely powerful not just for managing out-of-pocket healthcare costs, but also for building long-term retirement savings. The proposed expansions could amplify this role, giving millions more Americans the ability to reduce taxable income, grow wealth, and pay for healthcare and wellness costs with pre-tax dollars.

How RetireBetter Helps You Maximize HSAs

At RetireBetter, we view HSAs as more than healthcare accounts—they are a strategic financial wellness tool. Our HSA and FSA solutions are designed to help both businesses and individuals unlock the full potential of these accounts with clarity, simplicity, and confidence.

With RetireBetter, you can:

• Pair an HSA with a high-deductible health plan (HDHP): Build a financial buffer for medical costs while compounding long-term savings.
• Compare HSAs and FSAs side by side: Make informed decisions based on your organizational or personal needs.
• Empower employees and clients: Provide user-friendly tools, education, and ongoing support to ensure accounts are maximized.

Preparing for the Future

Already, millions of Americans are using HSAs to save smarter and spend strategically. With new legislation potentially broadening access and benefits, now is the time to ensure you, your employees, or your clients have the right tools in place to take advantage of the expansion.

RetireBetter’s future-ready platform is built to evolve with changing regulations, ensuring you stay compliant while unlocking every available advantage.

Healthcare costs aren’t slowing down—but with the right strategies, your savings can stay ahead. RetireBetter is here to help you harness the new opportunities HSAs bring to healthcare and retirement planning.

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