A New Direction for Retirement Savings

Use a health savings account to supplement your IRA or 401(k).

Looking for another way to benefit from tax breaks on saving for retirement? Then take a gander at the new, improved health savings account.

HSAs started out as a way to help pay medical expenses. To qualify, you had to sign up for a health-insurance plan with a high deductible -- at least $2,200 for family coverage and $1,100 for individuals. You could then open an HSA and contribute an amount up to your deductible, with a maximum in 2007 of $5,650 for families and $2,850 for individuals.

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Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.