Health savings accounts are vastly underused as a retirement investment tool by people who have them, even though thousands of dollars can be invested every year.
Crucially, HSA funds aren't strictly limited to medical expenses, since they can be withdrawn for any reason after age 65 without triggering a 20% penalty on non-medical expenses.
In effect, HSAs are potent retirement investment accounts, too.
But despite the benefits, only about 13% of people invest the funds in their HSAs, according to recent data from the Employee Benefit Research Institute.
Here's a look at how HSAs work and why you might want to invest the funds in that account.
Persons:
Ben Smith
Organizations:
IRS, Research Institute
Locations:
Milwaukee