The Moore Family – Empty-Nesters with an HSA Plan

The Moore Family

Health Savings Account Case Study - Moore Family 1

Empty-nesters looking for a personal health plan and tax advantages!

Who: Bill and Andrea Moore
Where: St. Louis, Missouri
What: HSA plan owners
Why: Empty nesters planning for the future

Bill Moore is 53 and his wife Andrea just turned 49. They’re proud parents of two children – a daughter, working in the banking industry, and a son who’s expected to finish college next year.

With both children nearly out on their own, Bill and Andrea are planning the next phase of their lives: moving from a four-bedroom home in the suburbs to a smaller condo in the city. Andrea is ready to expand her successful, part-time catering business, and Bill wants to retire early from his executive post at a Midwest manufacturer.

They’ll need a personal health plan and some new tax breaks, with the kids soon-to-be no longer dependent upon them.

A health savings account is a great fit for empty-nesters ready to move on with their lives.

Why an HSA?

  • Qualified, lower-cost high deductible health insurance can be a cost-effective way to protect Bill and Andrea in case of major health care expenses.
  • With a family HSA plan, the couple will have a single combined deductible.
  • The Moores can save funds to cover the insurance deductible and other qualified medical expenses tax free.
  • Money going into an HSA account is deductible off of federal gross income, within legal limits. Many states allow the deduction as well.
  • Bill and Andrea’s HSA savings grow tax deferred.
  • Once Bill reaches age 55, federal law allows him to save an additional $1,000 every year until retirement.
  • Once in retirement HSA savings can be used, like an IRA, for living expenses and they only pay regular income taxes on the withdrawals.
  • Savings used for qualified medical expenses (including dental and vision care) are never taxed, even in retirement.

For Bill and Andrea, an HSA plan makes sense – qualified personal health insurance with lower premiums than traditional or copay alternatives and tax advantages that self-employed, empty-nesters can really appreciate.

* The Moore’s story is a hypothetical example for purposes of illustration only.