HSA — Triple Tax Shield + “Free Money”

A Health Savings Account (HSA) offers unique tax benefits and flexibility for managing medical expenses and retirement planning. Designed for individuals with a High Deductible Health Plan (HDHP), HSAs combine tax advantages with the ability to invest, making them a valuable tool for building financial security.

The Triple Tax Benefits

1. Contributions: Tax-deductible, reducing your taxable income.
2. Growth: Tax-deferred, so your investments grow without being taxed yearly.
3. Withdrawals: Tax-free when used for qualified medical expenses.

These three layers make HSAs one of the most tax-advantaged accounts available.

Contribution Limits for 2024

• $4,150 for individuals
• $8,300 for families
• Catch-up Contribution: Additional $1,000 for those aged 55 or older (per individual)

Some employers may provide flat contributions or tie them to wellness incentives, essentially offering “free money.” Employer contributions count toward these annual limits.

Key Features of an HSA

• Investment Opportunities: Many HSAs allow you to invest in mutual funds, ETFs, or alternative…