Nobody likes to pay taxes, but it's especially hard for older Americans to deal with an unexpected tax bill. Given how many people live primarily on fixed incomes from Social Security and other sources, many don't have much extra cash to pay any more than absolutely necessary to the IRS.
The advantage of accumulating after-tax assets in a retirement account is that when they are distributed, the amounts will be tax- and penalty-free. However, this benefit is realized only if the necessary steps are taken.
Health savings accounts (HSAs) are perhaps the most powerful savings vehicles, especially for retirement savings, because of their significant tax advantages. Yet, too many HSA owners don’t reap all the advantages of their accounts.
Many Americans often look forward to receiving a tax refund. But before splurging on a dinner out or a weekend getaway, consider these steps to put your tax refund to work this year, setting yourself and your family up for long-term financial success.