Contributions pre-tax. Growth tax-free. Qualified withdrawals tax-free. See how much this saves you over 10, 20, and 30 years versus a taxable account doing the same work.
California and New Jersey do not allow state HSA deduction 🔍 verify×DON'T TRUST, VERIFYClaim: CA and NJ do not conform to federal HSA tax treatment.Verify at: California FTB ↗Set state rate to 0% if in CA or NJ..
What you pay without HSA reimbursement. Keep receipts; reimburse later tax-free.
Pay medical expenses out of pocket now. Keep receipts. Reimburse yourself tax-free from the HSA any time in the future. This is a running pool of future tax-free withdrawals. Above is the total over the contribution window.
After 65, HSA funds can be withdrawn for any purpose and taxed like a Traditional IRA. The 20% non-qualified withdrawal penalty goes away. The HSA effectively becomes a bonus retirement account 🔍 verify×DON'T TRUST, VERIFYClaim: After 65, HSA non-qualified withdrawals are taxed as ordinary income without the 20% penalty.Verify at: IRS Publication 969 ↗HSA withdrawals for qualified medical expenses remain tax-free at any age..
Not financial advice. Requires HDHP. US tax law.