#6 Roll Over From a Traditional IRA to an HSA

You may have chosen to cover your health insurance with a high-deductible plan, so one way you could reduce your taxes would be to contribute to a health savings account every year. An HSA is going to grow without being subjected to any taxes for that growth, and, as long as you use that money towards health-related payments and any medical expenses, the money will also be coming out tax-free.

It is allowed under the rules of the IRA to move money from your IRA account to an HSA with no taxes added for that transfer, as long as it doesn’t exceed your contributions for that year.

This move will help you reduce the amount of taxes you are owning during your golden years because just by keeping the traditional IRA account, even if you use money from it towards medical expenses, you will be taxed. Keep in mind that this is only a one-time thing: the IRS set a rule that limits the rollover from IRA to HSA to one time per person per lifetime!

So think about this carefully.

If you’re trying to budget your retirement and you want to stick to a budget, then you would be interested in reading this article about the best places in the country to retire for under $45k a year!