If you live in the US and have a high-deductible health plan, the HSA is the single best tax shelter in the tax code. Most people never realise it.
Ask ten experts and you will get twelve answers. The underlying math, thankfully, only has one. If you live in the US and have a high-deductible health plan, the HSA is the single best tax shelter in the tax code. Most people never realise it.
Pre-tax payroll deduction, use-it-or-lose-it by year-end, capped around $3,200.
Contributions are pre-tax, growth is tax-free, withdrawals for qualified medical are tax-free. Nothing else has all three.
Pay medical bills out of pocket today, keep receipts, let HSA grow for 30 years, withdraw tax-free at retirement.
Can I have both? Only a limited-purpose FSA (dental/vision) alongside an HSA.
What if I switch jobs? HSA is yours forever. FSA usually does not move with you.
If you only remember one thing from this post, make it that the inputs matter more than the calculator.