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Isn't HSA annual contribution limit something like $4k? That's not really going to be life changing when you're old, retired, and in need of medical care, is it
by dataflow 3y ago
Isn't HSA annual contribution limit something like $4k? That's not really going to be life changing when you're old, retired, and in need of medical care, is it?
- xboxnolifes 3y ago$4k * 30-40 years of tax free, both in and out, investable income is a lot of savings for healthcare. The contribution limit also increases nearly every year.
- wenc 3y agoWhen you factor in compounding and triple tax advantages (contribution/growth/withdrawals are tax exempt), it can be quite a lot of money over 20-30 years. HSAs can be invested as well say in a target fund or index which should net 5-10% per year. Like a 401k, contributions also lower your taxable income so they save you from taxes today. Try it yourself: https://www.hsabank.com/hsabank/Learning-Center/HSA-Savings-Calculator https://www.hsabank.com/hsabank/Learning-Center/HSA-Savings-...