HSA — The Triple Tax-Advantaged Account
Deductible going in, tax-free growth, tax-free out for medical. The most tax-advantaged account in the code — often best invested, not spent.
The 3 tax advantages
1) Contributions are pre-tax (and FICA-free if via payroll). 2) Investments inside the HSA grow tax-free. 3) Withdrawals for qualified medical are tax-free. After 65, non-medical withdrawals are taxed like a Traditional IRA — so it's at least as good as one.
The 'invest, don't spend' play
Pay current medical bills out-of-pocket. Save the receipts. Let the HSA grow invested for decades. At retirement, reimburse yourself for those decades-old receipts — totally tax-free withdrawal of compounded growth.
Who's eligible
Must be enrolled in a High-Deductible Health Plan (HDHP), no other disqualifying coverage (incl. some FSAs and Medicare). 2026 limits: $4,400 self / $8,750 family + $1,000 catch-up at 55+.
Educational only — not tax, legal, or investment advice. Talk through your specific situation with a qualified advisor.