Still Working at Age 70?
There are many advantages to working past age 70, one of which is delaying monthly Social Security distributions so you can receive the highest monthly benefit provided for the amount of credits you have earned, notwithstanding exceptions. Senior employees covered by an employer-sponsored high-deductible health care plan also can save more toward retirement by utilizing a limited-purpose flexible savings account (LPFSA), health savings account (HSA), and required minimum distributions (RMD) from a traditional individual retirement account (IRA).
Consider some potential benefits of having one of the above accounts:
- Save money tax-free in a limited-use FSA to reimburse out-of-pocket vision and dental expenses.
- If you delay signing up for Medicare, you may continue making tax-free contributions to an HSA.
- Pay taxes on your IRA RMD, then use that money for HSA contributions and claim the ensuing tax deduction, $3,350 for an individual and $6,640 for family coverage (2015 limit for over 55 years old: $4,350 individuals; $7,650 for family).
Building up savings through an HSA gives you a separate account to help pay for medical expenses during retirement so you don’t have to budget for them in your retirement income plan.
Click here to read “Limited Purpose Flexible Spending Account”; PayFlex; June 2013.
Click here to read “Health savings account rules and regulations Bankrate.com; Jan. 8, 2015.
Our firm specializes in helping our clients maximize their social security income. If we can be of any assistance to you please call us at 801-990-5055 or visit us at www.bossretirement.com .
Our firm assists retirees and pre-retirees in the creation of retirement strategies utilizing investment and insurance products. Advisory services offered through B.O.S.S. Retirement Advisors, a Registered Investment Advisory firm, and offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor. Insurance products and services offered through B.O.S.S. Retirement Solutions.
The information contained in this material is provided by third parties and has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. It is given for informational purposes only, and no statement contained herein shall constitute tax, legal or investment advice. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. You should seek advice on legal and tax questions from an independent attorney or tax advisor. Our firm is not affiliated with the U.S. government or any governmental agency.
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