Paying for health care costs is an important component indetermining one’s financial needs in retirement that is oftenforgotten in retirement planning.  According to researchby the Employee Benefit Research Institute, some couples may need$370,000 for medical expenses during retirement.  While401(k) plans, individual retirement accounts (IRAs) and taxableinvestment accounts can help individuals meet their retirementplanning needs, a health savings account (HSA) can provide aunique, triple tax-advantaged means of saving for medical expensesafter retirement.

HSAs are a savings vehicle specificallydesigned to save for medical expenses that occur duringworking years as well as in retirement.  Contributions aremade to an HSA in years where the individual is covered by aqualified high-deductible health plan (HDHP). Contributions to anHSA are based on whether the HDHP coverage is individual or familycoverage.