Recent changes to health savings accounts (HSAs) make them much more attractive. These accounts double as health insurance and a retirement account. Previously, they only allowed smaller contributions each year, but the limit has been raised for 2024.
Money contributed to a health savings account is tax deductible. It enables money to be available for HSA-qualified expenses (the annual deductible), which are tax-free, and you can withdraw the money in retirement for any purpose without having to pay taxes on them.
The Savings Element of HSAs
A health savings account gives you the opportunity to save money and earn interest tax-free. The money still in the account at year’s end rolls over from one year to the next, unlike a flexible savings account (FSA), which loses all remaining funds at year’s end….