How to Use a Health Savings Account (HSA) as a Retirement Account

Have you been taking advantage of the pretax benefits of retirement accounts like 401K plans and IRA accounts every year, socking away as much as permitted?

Did you know you can use a health savings account as a vehicle to save more money pretax? With a high deductible health savings account plan you can deposit up to $3,000 pretax or $5950 for families into an HSA every year.

Funds deposited and the interest earned in a HSA account can be withdrawn tax tree for medical expenses at anytime. If the funds are not used for medical expenses you can leave the money in the account earn in and year out.

When you turn 65 the funds can be withdrawn for any reason and you won’t pay a penalty. You will pay regular taxes, just like you would with a traditional IRA, but your money would have grown tax free until retirement.