The Smart Tax Move Every Woman Should Know for Healthcare + Retirement

Retirement is an exciting milestone, filled with opportunities to enjoy life on your terms. But it also comes with new financial considerations—especially when it comes to healthcare. While Medicare provides essential coverage, it doesn’t pay for everything. Out-of-pocket costs, dental, hearing, vision, long-term care, and premiums can quickly add up. That’s why planning ahead for healthcare costs is one of the smartest moves you can make—and one of the most tax-efficient ways to do so is through a Health Savings Account (HSA).

An HSA is a powerful, yet often underutilized, financial planning tool designed to help you save for current and future medical expenses. What makes it so unique? It offers triple tax benefits:

• Contributions are tax-deductible
• Growth is tax-deferred
• Withdrawals are tax-free when used for qualified medical expenses

Unlike a Flexible Spending Account (FSA), your HSA funds never expire. Any unused balance rolls over year to year, allowing you to build a meaningful nest egg specifically for health-related costs.

Going Beyond the Basics

With thoughtful planning, HSAs offer even more than basic savings:

• No income limits to contribute (as long as you're enrolled in a qualified high-deductible health plan)
• No required minimum distributions (RMDs)—ever
• Once your balance exceeds the cash minimum, you can invest your HSA funds for long-term, tax-free growth
• Funds can be used to pay for a wide range of costs, including Medicare premiums, long-term care insurance, concierge medicine, and any qualified medical expense.
• After age 65, your HSA becomes even more flexible. You can use it like a traditional IRA—withdrawals for non-medical purposes are taxed as ordinary income, but there’s no penalty

Who’s Eligible for an HSA?

To open and contribute to an HSA, you must be enrolled in a qualified high-deductible health plan (HDHP). Here are a few important eligibility facts:

• You don’t need to be employed to contribute—self-employed individuals and retirees with HDHPs can qualify
• You cannot be enrolled in Medicare—once you enroll in Medicare Part A or B, you can no longer contribute, though you can still use the funds
• The HSA belongs to you, not your employer. Even if your employer doesn’t offer an HSA, you can open one independently through a qualified custodian
   

Contribution Limits for 2025

For 2025, the contribution limits are:

• $4,300 for individuals
• $8,550 for families
• $1,000 additional “catch-up” contribution for individuals aged 55 and older

Your HSA, Your Strategy

Think of your HSA not as a basic savings account, but as a flexible, tax-advantaged investment vehicle—a way to build wealth while reducing the financial stress of future medical expenses. Used wisely, it complements your broader retirement plan, especially for the gaps Medicare doesn’t cover.
At Sunstone Wealth, we specialize in helping women take control of their financial future with clarity, confidence, and compassion.
Your future deserves more than a plan—it deserves a partner.
 

Investment advisory services offered through Raymond James Financial Services Advisors. Inc. Sunstone Wealth Management is not a registered broker/dealer and is independent of Raymond James Financial. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC.