50 and older, I'm sorry, but in my personal experience, your advice has been a little out of date.

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[โ€“] 4 points 1 day ago (3 children)

They're both tax advantaged accounts - meaning you don't have to pay taxes on them in most situations.

HSA is supposed to be a Health Savings Account, but has turned into more of a retirement account. 401k is Americas sad replacement for pensions as workers need to contribute to it and so it largely only helps wealthier people.

The more general advice would be - make sure to save and invest money (preferably in ways that avoid taxes if possible).

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  • [โ€“] 2 points 20 hours ago (1 child)

    Can you explain what you mean about the HSA being more of a retirement account? Can't you only use that money on medical or health related purchases? I understand the possible tax savings through an HSA, but I don't see how it could be a retirement account.

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  • [โ€“] 1 point 19 hours ago

    After you turn 65 there is no penalty for using your HSA for non-medical purchases, you just have to pay income tax on withdrawls. This effectively turns an HSA into an IRA after you turn 65. So you can contribute pre-tax, it grows tax-free, then you can withdraw without any penalty - making it effectively just another retirement account.

    https://ourtaxpartner.com/hsa-distribution-rules-after-age-65-medicare-premiums/

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