Erin Lowry

“HEALTH SAVINGS ACCOUNT (HSA): It may seem strange to include an insurance product in the retirement investing chapter, but an HSA offers you both a tax-advantaged savings vehicle and a way to prepare for future medical expenses, even as far out as retirement. Contributions to your HSA lower your taxable liability, then the money grows tax free, and withdrawals used for qualified medical expenses are also tax free. You aren’t required to spend the money within a certain period of time like you are with a flexible spending account (FSA). There are contribution limits depending on your filing status: e.g., in 2018, they were $3,450 for an individual and $6,900 for a family. Unfortunately, you’re eligible for an HSA only if you have a high-deductible health plan. Now for the reason it makes sense to include this term in a retirement investing chapter (other than the fact that you can save for medical expenses in retirement): The money in your HSA can be invested instead of just sitting in a savings account waiting to be used on medical expenses. Your HSA investment options depend entirely on your provider, but generally there are mutual-fund options.”
― Erin Lowry, Broke Millennial Takes On Investing: A Beginner's Guide to Leveling Up Your Money