---
title: "Lord Abbett: Why HSAs Matter More Than Ever"
description: "Lord Abbett: reasons to invest in an Health Savings Account and how an HSA can play a role in retirement savings."
image: http://www.letsassemble.com/hubfs/MM_Logo_Images/Lord_Abbett_Market_Commentary.png
---

[![Assembly Wealth](https://www.letsassemble.com/hs-fs/hubfs/Assembly/logos/Assembly-Wealth-Logo-Orange-500px.png?width=300&height=70&name=Assembly-Wealth-Logo-Orange-500px.png "Assembly Wealth")](https://www.letsassemble.com/)

The Money Manager People TM

[800-541-7774](tel:+18005417774)

[![RESEARCH MONEY MANAGERS](https://no-cache.hubspot.com/cta/default/10700/7ecbcb66-3fbb-41e3-b219-c24fb3c769c5.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/7ecbcb66-3fbb-41e3-b219-c24fb3c769c5)

[![Client Center](https://no-cache.hubspot.com/cta/default/10700/8691dcb4-caa3-42c2-a810-77b59f461fd2.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/8691dcb4-caa3-42c2-a810-77b59f461fd2)

[Home](https://www.letsassemble.com/)

WrapManager's Wealth Management Blog

When life changes, we can help you thoughtfully respond.

[< Back to read another post](https://www.letsassemble.com/wealth-management-blog)

# Lord Abbett: Why HSAs Matter More Than Ever

Posted by [ WrapManager's Investment Policy Committee](https://www.letsassemble.com/wealth-management-blog/author/wrapmanagers-investment-policy-committee)  
 March 29, 2017

- [Tweet](https://twitter.com/share)

[![Lord-Abbett-2017-Global-Investing-Outlook](http://www.letsassemble.com/hs-fs/hubfs/MM_Logo_Images/Lord_Abbett_Market_Commentary.png?width=404&name=Lord_Abbett_Market_Commentary.png "Lord-Abbett-2017-Global-Investing-Outlook")](https://www.letsassemble.com/hubfs/MM_Commentary_PDFs/Lord-Abbett-Why-HSAs-Matter-March-2017.pdf)

### *Many experts expect healthcare costs will continue to rise, making it important that advisors help their clients plan ahead.*

According to the Kaiser Family Foundation, health care has become somewhat less affordable, even among those with health insurance. Since 2015, larger shares of people with health insurance say they have a difficult time affording their healthcare costs: from 27% to 37% for premiums; 34% to 43% for deductibles; and from 24% to 31% for copays and prescription drugs.

Some experts estimate that a 65-year-old couple who retired in 2016 will need $260,000 to cover just healthcare costs in their golden years—6% more than the previous year's estimate of $245,000. That’s the highest estimate since such projections started in 2002, and chances are repealing and replacing the Affordable Care Act, not to mention the high cost of pharmaceuticals, could push retiree healthcare costs even higher. All of which highlights the need for advisors to discuss with clients the flexibility and power of Health Savings Accounts (HSAs).

Read on for a summary of their analysis, or [view the entire document here](https://www.letsassemble.com/hubfs/MM_Commentary_PDFs/Lord-Abbett-Why-HSAs-Matter-March-2017.pdf).

### **HSAs and Retirement Planning**

- HSAs were created with the passage of the Medicare Modernization Act in 2003. Although available more than a decade, HSAs are growing in popularity with both employers and employees. Why? An HSA offers an opportunity to pay medical expenses in retirement tax free. Distributions can be made at any time (unlike flexible spending accounts, which follow “use it or lose it” distribution rules), which, with smart planning, offers a younger individual to fund his or her HSA today and let the account grow without distributing any proceeds until later in life, potentially as late as retirement.

- In fact, HSAs are triple tax-advantaged, which means that contributions are tax deductible, distributions (of contributions) are tax free, and earnings are distributed tax free so long as the proceeds are used to cover qualified medical expenses. HSAs also can enable employers to lower premiums by creating higher deductibles and increase “cost sharing” with employees.

- While a distribution from an HSA is generally subject to a 20% penalty if the proceeds are not used for qualified medical expenses, the penalty is waived for those individuals age 65 and older who used their HSA for nonqualified medical expenses. But such a distribution is subject to income taxes.

[![Learn More About Lord Abbett](https://no-cache.hubspot.com/cta/default/10700/b722e05b-84bd-4282-877d-20e03d00f1ac.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/b722e05b-84bd-4282-877d-20e03d00f1ac)

For additional details, including contribution limits and how to coordinate an HSA with an IRA, [read the complete article from Lord Abbett](https://www.letsassemble.com/hubfs/MM_Commentary_PDFs/Lord-Abbett-Why-HSAs-Matter-March-2017.pdf). You can also contact us to learn more about [Lord Abbett and Company, LLC](http://www.wrapmanager.com/money-manager-research/lord_abbett_company_llc), other Money Managers, or to consult with a Wealth Manager to learn whether or not your retirement plan is on track. Give us a call at 1-800-541-7774 or [email us](http://wealth@wrapmanager.com). 

[Download the Full Commmentary Here](https://www.letsassemble.com/hubfs/MM_Commentary_PDFs/Lord-Abbett-Why-HSAs-Matter-March-2017.pdf)

[Get Free Performance Reports about Lord Abbett & Company, LLC](http://www.wrapmanager.com/money-manager-research/lord_abbett_company_llc)

 

[Retirement Planning](https://www.letsassemble.com/wealth-management-blog/topic/retirement-planning) [Healthcare in Retirement](https://www.letsassemble.com/wealth-management-blog/topic/healthcare-in-retirement) [Investment Plan](https://www.letsassemble.com/wealth-management-blog/topic/investment-plan) [Lord Abbett Company Llc](https://www.letsassemble.com/wealth-management-blog/topic/lord-abbett-company-llc) [Money Manager Commentary](https://www.letsassemble.com/wealth-management-blog/topic/money-manager-commentary)

[![get money manager picks](https://no-cache.hubspot.com/cta/default/10700/d72d98dd-a24b-41d8-9276-e1648f3b09d3.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/d72d98dd-a24b-41d8-9276-e1648f3b09d3)

### Subscribe to Updates

[Subscribe to RSS Feed](https://www.letsassemble.com/wealth-management-blog/rss.xml)

[![New Call-to-action](https://no-cache.hubspot.com/cta/default/10700/ffe2a394-957b-481b-9f80-4ef176bd6aaf.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/ffe2a394-957b-481b-9f80-4ef176bd6aaf)

### Most Recently Published

### Blog Authors

[![Gabriel Burczyk](http://www.wrapmanager.com/hs-fs/hub/10700/file-2347381761-jpg/Athors_Avatars/Gabe-avatar.jpg "Gabriel Burczyk")](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk)

[**Gabriel Burczyk,**](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk)  
[Founder & CEO](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk)

[![Valerie De Vol](http://www.wrapmanager.com/hs-fs/hub/10700/file-2457588837-jpg/Athors_Avatars/Valerie-De-Vol-avatar.jpg "Valerie De Vol")](http://www.wrapmanager.com/wealth-management-blog/author/valerie-de-vol)

[**Valerie De Vol, **IACCP®  
Chief Operating Officer](http://www.wrapmanager.com/wealth-management-blog/author/valerie-de-vol)

[![Seton-avatar.jpg](http://www.wrapmanager.com/hs-fs/hub/10700/file-2344519198-jpg/Athors_Avatars/Seton-avatar.jpg "Seton-avatar.jpg")](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews)

[**Seton McAndrews, **CFP®  
](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews)[Vice President - Investments](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews)

[![Doug Hutchinson](http://www.wrapmanager.com/hs-fs/hub/10700/file-2347381751-jpg/Athors_Avatars/Doug-avatar.jpg "Doug Hutchinson")](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson)

**[Doug Hutchinson,](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson) **[CFA®  
](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson)[Director of Research and Trading](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson)

![Katie - square.png](https://www.wrapmanager.com/hubfs/Katie%20-%20square.png "Katie - square.png")

[**Katie O'Connor  
**Director of Client Services](https://www.wrapmanager.com/wealth-management-advisors/katie-oconnor)

**Important Disclosure Concerning WrapManager Blogs**

Blogs found at this site have been created or supported by WrapManager. The information provided in a blog post prepared by WrapManager or an associated person of WrapManager is generally limited to financial and economic issues, but may include a discussion of general interest items. The views and opinions expressed on this blog are purely the blog authors, and not necessarily those of WrapManager, Inc. Certain blog posts include information pertaining to WrapManager’s investment advisory services and the products and services of unaffiliated money managers. Such information is provided for information purposes only. Accordingly, information provided in a blog should not be construed by any consumer and/or prospective client as a solicitation to effect or attempt to effect transactions in securities or the rendering of personalized investment advice. Any subsequent, direct communication by WrapManager with a prospective client shall be conducted by a representative of WrapManager. Moreover, no client or prospective client should assume content contained on the website serves as a substitute for personalized advice from WrapManager. Different types of investments involve varying degrees of risk, and there can be no assurance that any investment, portfolio or money manager referred to within the blog will be suitable for your individual situation and risk tolerance or will be profitable. WrapManager recommends that you retain a financial professional to provide you with specific guidance regarding your financial situation before investing. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested.

Although the information included in the WrapManager, Inc. website and blog has been obtained from sources WrapManager believes to be reliable, we do not guarantee its accuracy and information may be subject to change without notice. This website should not be regarded as a complete analysis of the subjects discussed. Information on this site should not be relied upon as a substitute for legal, tax or accounting advice by a professional in your local jurisdiction.

Comments made by third parties are subject to moderation by WrapManager and may not appear on this blog until they have been deemed appropriate for posting. Also, due to the volume of comments received, not all comments will be posted.

WrapManager does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party website linked to WrapManager's web site or incorporated within a blog post. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

 

 

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "WrapManager's Investment Policy Committee",
    "url" : "https://www.letsassemble.com/wealth-management-blog/author/wrapmanagers-investment-policy-committee"
  },
  "datePublished" : "2017-03-29T13:21:00.000Z",
  "headline" : "Lord Abbett: Why HSAs Matter More Than Ever",
  "image" : [ "//www.letsassemble.com/hubfs/MM_Logo_Images/Lord_Abbett_Market_Commentary.png" ],
  "mainEntityOfPage" : {
    "@id" : "https://www.letsassemble.com/wealth-management-blog/why-health-savings-accounts-hsas-matter-more-than-ever",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://www.letsassemble.com/hubfs/Assembly/logos/Assembly-Wealth-Logo-Orange-500px.png"
    },
    "name" : "Assembly"
  }
}
```