How to Use an HSA to Save a Lot

Published On Feb 14, 2025, 9:00 AM

A recent analysis shows that individuals starting a Health Savings Account (HSA) at age 25, contributing the maximum allowed each year without making any withdrawals until age 64, could potentially accumulate $1 million by retirement. This requires consistent contributions of $4,300 annually, enhanced by an expected 7.5% return on investments. HSAs offer significant tax advantages, allowing for tax-free growth and withdrawals for medical expenses, and after age 65, funds can even be used for non-medical costs with regular income tax applied.