Health Savings Account (HSA)
An HSA is the only account with a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. It's often called the 'stealth IRA' because after 65, you can use it for any expense (taxed as income, like a Traditional IRA).
2026 IRS Contribution Limits
Key Details
Requires enrollment in a High Deductible Health Plan (HDHP).
Unlike an FSA, HSA funds roll over year to year - there is no 'use it or lose it' rule.
You own your HSA even if you change employers or health plans.
After age 65, withdrawals for non-medical expenses are taxed as income (no penalty), similar to a Traditional IRA.
Consider paying current medical expenses out of pocket and letting your HSA grow for retirement.
Many HSA providers offer investment options once your balance reaches a certain threshold.