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There's also HSA (although still taxed in California you'll still avoid federal taxes) which is tax deferred and if used for qualified medical expenses you'll n
by paulsowden 14y ago
There's also HSA (although still taxed in California you'll still avoid federal taxes) which is tax deferred and if used for qualified medical expenses you'll never pay federal tax. After age 60 it can be drawn down on similar to an IRA. (Has the caveat that it to maintain an HSA you need to be on a HDHP, which for a healthy 20 something is probably a reasonable choice).
- chiph 14y agoHSAs are a great choice for someone without ongoing medical costs. I'm currently earning 2% in mine. Best part about it is that contributions stay in the account & continue earning interest, unlike an FSA where it's use-it or lose-it each year.
- protomyth 14y agoand since FSA maximum got cut and HSA maximum increased, it makes a lot more sense