Your Health Savings Account (HSA) offers compelling tax benefits and can help you plan for future needs, such as saving for qualified medical expenses in retirement. An HSA is one of the most efficient tax saving options available, and by contributing the maximum and paying out of pocket for current health care expenses, you can let money accumulate year-to-year and invest it for retirement purposes.  

Why contribute to an HSA and save it for your Retirement?

• An HSA offers triple tax savings potential; depending on your state tax laws, you may be able to contribute pre-tax dollars, invest the money for tax-free or tax-deferred earning potential, and then withdraw funds tax-free either now or in retirement for qualified medical expenses.
• For most, at age 72 (73 if you reach age 72 after December 31, 2022) there are required minimum distributions that one must take from traditional 401(k)s and IRAs that are not tax free. However, for HSAs the required minimum distributions do not apply.
• The funds in your HSA can stay in your account from year to year, allowing for accumulation potential. The account is owned by you should you change employers.
• You may be able to invest your HSA assets for an opportunity for tax-free or tax-deferred growth (depending on your state’s tax laws and use of the money for qualified purposes) to help fortify and build for your retirement.

Source: https://www.fidelity.com/viewpoints/wealth-management/hsas-and-your-retirement

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