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.
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