I don’t know about you, but I never turn down a way to save for the future. There are many ways to do so, specifically regarding your health care and retirement. As you prepare for open enrollment, make sure you understand all of your options going forward.
Many people don't realize that Health Savings Accounts (HSAs) are designed to be long-term savings vehicles – enabling you to save tax-free for health care expenses, both now and into the future. With an HSA, your unused funds roll forward from year to year. Plus, your account/savings come with you – even if you leave your job.
HSAs offer broader tax benefits than other long-term savings options, like 401(k)s and IRAs. HSAs are triple tax-advantaged, meaning you will not pay taxes on contributions, nor will you pay taxes on interest earned or upon withdrawal for qualified expenses. Many financial advisors even recommend maxing out your HSA before investing in your 401(k) to optimize your tax benefit. In other words, HSAs are great supplemental retirement plans.
If you go about saving your HSA funds judiciously, reserving them only for qualified medical expenses, this can be a great way to make use of your hard-earned money, adding more cushion to your future.