Health Savings Accounts (HSAs) are tax-advantaged savings accounts specifically designed for medical expenses. They’re for folks with high-deductible health plans (HDHPs). An HSA lets you save money on a pre-tax basis to pay for qualified medical expenses. You can have the money in cash and/or Invest it! When I got a blood clot in 2020, I sold off of all my investments in my employer sponsored HSA to pay for the hospital bills. The point of stock is to sell it and convert it to cash to pay bills, whether it's now or in 60 years.

HSAs are triple tax advantaged:

Tax-deductible contributions: The money you contribute to your HSA is tax-deductible.

Tax-free growth: The funds in your HSA grow tax-free over time.

Tax-free withdrawals: When you use HSA funds for qualified medical expenses, the withdrawals are tax-free.

Contribution Limits:

For 2024, you can contribute up to:

$4,150 for individual coverage

$8,300 for family coverage

If you're 55 or older, you can make an additional "catch-up" contribution of $1,000.

This is a great account to max out, especially if you're already maxing out your IRA/Roth IRA AND 401(k)/Roth 401(k). 

Qualified Expenses:

You can use your HSA for a wide range of medical expenses, including:

Doctor visits

Prescriptions

Some over-the-counter medications

Dental and vision care

And more! I used mine for chiropractic adjustments 

HSAs can also serve as a retirement savings tool. After age 65, you can use the funds for non-medical expenses without incurring a penalty, though you'll need to pay regular income tax on those withdrawals.

The trickiest part with HSAs is not knowing how much to have in cash vs how much to invest. Also, picking the right investments is crucial. If you need help with this, I'm taking 1:1 coaching clients.