A RETIREMENT RESOURCE: HSAs ARE AN EXCELLENT OPTION

Health Savings Accounts are an excellent way to build a second retirement account.

Sadly, lack of affordable health insurance keeps many Americans working longer than they wish to.

HSAs are, without exception, the best way to build up money to pay for medical expenses during retirement. Your HSA contributions won't affect your IRA limits. It's just another tax-deferred way to save for retirement, with the added advantage being that you can withdraw funds tax-free if they are used to pay for medical expenses.

Any money you deposit in your health savings account is 100% tax-deductible*, and the money in the account grows tax-deferred like an IRA.

If you're 55 and older, you can put in $900 in 2008, and an additional $1,000 from 2009 onward. The contribution limit is indexed to the Consumer Price Index (CPI), so it will increase at the rate of inflation each year.

To establish a health savings account, you must first own an HSA-qualified high deductible health insurance plan. Compare HSA plans side by side to determine the best value to meet your needs. Once you have your high deductible health insurance plan in place, you can open your Health Savings Account with the insurer of your choice.