![]() ![]() He thought it was funny that I shaved my head into a Mohawk for the Halloween party.įirst off, be aware that a Health Savings Account (HSA) is completely different than a Flexible Savings Account (FSA). That day the infamous Mad Fientist wanted his picture taken with little old me at FinCon. It was an a-ha moment for sure – too bad I didn’t come across it until around 2017. ![]() I first learned about the idea of using your HSA for retirement when I stumbled upon the Mad Fientist’s post, HSA – The Ultimate Retirement Account. Contact a professional before making any changes or investments that you don’t fully understand. But what I really want to do is to show you how I keep track of our unreimbursed medical expenses to ensure compliance while making the process as efficient as possible.ĭisclaimer: As a reminder, I’m not an accountant, financial planner, or any other fancy-titled person. ![]() I’ll briefly discuss the value of this account. I’ve talked about it years ago in Are HSA Plans the Best Bang for Your Buck? and The HSA Benefits Just Keep Rolling In. Some of you may already know about how valuable the Health Savings Account can be. So a three for three on the tax benefits is unheard of except for using an HSA for retirement. And Roth 401(k) plans inherently mean that you’re putting in after-tax dollars. Traditional 401(k) money gets taxed when you withdraw your money. I can’t think of another account that awesome! Even a 401(k) plan loses out against this account (not counting employer matches). In doing so, your money goes in with pre-tax dollars, grows tax-free, and can be taken out tax-free as well. Although designed as a medical savings account to be paired with a high-deductible health plan (HDHP), there’s a crafty way to make it even more valuable. There’s no doubt that this is one very special account. However, using your HSA for retirement has only been gaining popularity over the last handful of years. Health Savings Accounts (HSA’s) have been around in the U.S. ![]()
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