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3 Retirement Savings Tools We Should All Be Thankful For | Personal Finance

In fact, it pays to intentionally not dip into your HSA while you’re working and let that money grow, since unused HSA funds can be invested. And from a tax standpoint, HSAs offer more benefits than IRAs or 401(k)s. That’s because they’re triple tax-advantaged — contributions are tax-free, investment gains are tax-free, and withdrawals used for medical expenses are tax-free.

Another great thing about HSAs is that once you turn 65, you can remove funds from your HSA for any reason and not get penalized. You’ll pay taxes on your withdrawals in this case, but that’s really no different than paying taxes for withdrawing money from a traditional IRA or 401(k).

HSA eligibility hinges on having a high-deductible health insurance plan. This year, HSAs max out at $3,600 for individuals and $7,200 for families. Next year’s limits will rise to $3,650 and $7,300, respectively. However, workers 55 and over can put in an extra $1,000 on top of whichever limit applies to them.

Give thanks for a variety of savings options

Whether you opt to save for your senior years in an IRA, 401(k), HSA, or a combination of these plans, it pays to express some gratitude for the fact that they exist and are loaded with different tax breaks. If it weren’t for these plans, a lot of us might have a much harder time building wealth for the future.

Read More: 3 Retirement Savings Tools We Should All Be Thankful For | Personal Finance

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