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Using Your HSA as a Retirement Investment Vehicle []

Tuesday, February 23, 2010 - 7:52 PM
FiveCentNickel blog noted some interesting features of Health Savings Accounts that can make them more attractive for those with high-deductible health insurance plans. Here's one of the features:
Once you turn 65, you can take non-qualified distributions by paying taxes (like a Traditional IRA) without paying the 10% penalty
Refer to my Health Savings Account Overview for more details about HSAs, and to find competitive rates on HSAs, refer to the HSA Rates section of
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,632
1. Tuesday, March 2, 2010 - 5:35 PM
I refer to the HSA as a "super Roth" account.  You not only have tax free interest, but you also have the tax deduction up front too.  So your contributions and earnings are completely tax free (as long as they are used to pay for medical expenses).  The only negative is the maximum annual limits that they impose on contributions.  I hope my 5% account rate lasts for a long time, so the money can grow that much faster.  The health care reform bills floating around Congress was trying to eliminate the HSA provisions from the universal health care program.  They see the HSA as something that only helps the high income taxpayer and need to shift the lost tax revenue from that program to cover health care reform.
AnonymousAnonymous2,282 posts since
May 9, 2010
Rep Points: 3,950