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Trump’s budget could open up this tax-free savings account to people on Medicare

March 13, 2019 / On Wall Street

The Trump administration unveiled its proposed budget that includes provisions that would enable Medicare beneficiaries to contribute to a health savings account, according to this article on CNBC. Under existing laws, retirees cannot make contributions to this tax-advantaged account, which is funded on a pre-tax basis, offers tax-free growth on savings and tax-exempt withdrawals for qualified expenses. The proposal would benefit older workers who use Medicare as a secondary payer and people who want to sign up for Medicare Advantage with a Medicare medical savings account, says an expert with the Kaiser Family Foundation. The government can address Social Security’s financial woes by indexing retirement benefits to life expectancy, which has increased in recent decades, according to this opinion piece on MarketWatch. “While life expectancy does not increase the size of the monthly payment, it changes the number of checks that a retiree expects to collect,” this opini...