Can I save for medical costs?

Yes. Health Savings Accounts let you put pre-tax money into an account that can be used to pay medical costs. To be eligible, you need to be enrolled in a highdeductible health care plan. HDHPs have deductibles of at least $1,350 for an individual or $2,700 for a family; that now covers about half of Americans, and the number is rising. Although HSAs are not typically thought of as retirement investment vehicles, they absolutely can be. Contributions to an HSA—up to $7,000 a year for a family—carry over year to year and can be invested in mutual funds or exchange-traded funds. Withdrawals for medical expenses are tax-free, a big benefit in retirement, when many of your costs will be medical-related. Less well known: After age 65, you can treat an HSA like any other retirement account, withdrawing money as you would with an IRA or a 401(k).