Smart Saving: From IRA to HSA

Feb 8, 2019

HSA Funding with an IRA

Did you know that the average couple retiring at age 65 will need $280,000 to cover health care and medical costs in retirement?

It’s one of the most significant costs for those of an advanced age. A little planning now, however,  will go a long way to a healthy, productive and prosperous future.

Moving Funds From IRA to HSA

A popular trend over the past decade has been the rise of health savings accounts (HSA).

These savings accounts can provide both flexibility in medical care (and choices) and significant medical savings for taxpayers in the United States. This is particuarly true for those enrolled in a high-deductible health plan currently.

An HSA (health savings account) allow for tax-free withdrawals if the money is used for qualified medical expenses. This includes fo uses such as hearing aids, dental work, and prescription medicine. You can even keep your HSA funds to use later in life after you retire.  

There are numerous advantages to setting up an HSA and the IRA Club’s HSA plan is perfect for the tax-conscious, long term investor. While not as “exciting” as other forms of investing (like using a self-directed IRA for House Flipping) there are many benefits and advantages.

BENEFITS Of Using an IRA for Funding an HSA

Explore some of the many benefits below and contact an IRA Club representative today to learn how you can get started on a healthier and more financially secure future: 

1) Tax-deductible Contributions

Any funds that are contributed to a health savings account will not be subject to federal income tax.

2) Control & Flexibility

The unused funds rollover year after year.  Why not invest those funds? When you invest using your HSA, a high level of control is available, providing you the choice you need to prioritize health care costs for return on investment. You can use your Investable HSA to invest in real estate, private placements and even hard money lending

3) Tax-free Growth

Investable HSA’s provide account growth without the tax burden, ultimately providing greater portfolio growth. 
BENEFITS Of Using an IRA for Funding an HSA

4) HSA Roll-overs

The most significant benefit to HSA accounts from an investing perspective is that any and all contributions roll over from year-to-year. 

5) Withdrawing Funds

HSA investors can withdraw the funds for qualified medical expenses with out penalty or tax at any age. IRA Club will provide you with a Visa debit card for quick and easy use.

If you choose to withdraw funds for non qualified medical expenses after age 65 you will need to pay taxes on the amount withdrawn.

6) Required Minimum Distribution

HSA’s are an ideal long-term investment because there is no required minimum distribution so you can ensure your money keeps growing. 

7) Funding an HSA

For 2019, the maximum contribution is $3,500 for an Individual and $7,000 for a Family Plan. Health Savings Accounts can be funded using personal funds.

The Health Opportunity Patient Empowerment Act of 2006 made it possible to make a one-time, penalty- and tax-free rollover of funds available in their Individual Retirement Account (IRA) to a health savings account (HSA).

8) Tax-Free Withdrawls

Should a medical expense arrive, HSA accounts can be used to cover those costs without the tax burden of an IRA. 

9) Portfolio Diversity

In addition to having an IRA and a 401k, investors can improve their portfolio diversity as they can also have a health savings account and use it as an investment vehicle. 

10) Lower Fees

IRA Club provides some of the lowest fees in the industry and a knowledgeable, courteous, and professional level of service.

Are you a tax-conscious, long term investor considering opening a health savings account?
Contact The IRA Club to learn more.


The IRA Club does not make investment recommendations. The IRA Club offers no investments products or planning services. Always consult your attorney, your tax professional, your financial planner and any other qualified person before making any investment.