An HSA is a tax-advantaged account for medical expenses, available only to people enrolled in a high-deductible health plan (HDHP). Contributions are pre-tax, growth is tax-free, and qualified withdrawals are tax-free — the only triple-tax-advantaged account in the US tax code.
Used correctly, an HSA is the single best retirement account available — better than a 401(k), better than a Roth IRA. Contribute max, invest the balance, pay current medical bills out of pocket, and save the receipts. Years later, you can reimburse yourself tax-free from the grown-up balance.
Medicare is the federal health insurance program for Americans 65+. It has four parts: A (hospital), B (doctors/outpatient), C (Medicare Adv…
A 401(k) is an employer-sponsored retirement plan that lets employees defer pre-tax (or Roth) salary into an investment account. Most employ…
An Individual Retirement Account (IRA) is a self-directed retirement account with tax advantages. Traditional IRAs offer pre-tax contributio…
A Roth IRA is an after-tax retirement account where contributions grow tax-free and qualified withdrawals are tax-free in retirement. Contri…