At a certain point, you can invest it like a 401k. That’s a giveaway to the stock market. Eventually, you can withdraw it for anything in retirement.
Where a 401k is invested with tax-free money now but gets taxed later, and an IRA is invested with taxed money that doesn’t get taxed later, an HSA is invested tax-free AND doesn’t get taxed later.
What I’m saying is that it’s a giant tax dodge masquerading as a band-aid for a broken healthcare system.
Do what you need to for taking care of you and your family. Maxing out an HSA is generally your best option right now. But just keep in mind that this is a system that shouldn’t exist.
Goes beyond even that.
At a certain point, you can invest it like a 401k. That’s a giveaway to the stock market. Eventually, you can withdraw it for anything in retirement.
Where a 401k is invested with tax-free money now but gets taxed later, and an IRA is invested with taxed money that doesn’t get taxed later, an HSA is invested tax-free AND doesn’t get taxed later.
What I’m saying is that it’s a giant tax dodge masquerading as a band-aid for a broken healthcare system.
Do what you need to for taking care of you and your family. Maxing out an HSA is generally your best option right now. But just keep in mind that this is a system that shouldn’t exist.