@[email protected] to Mildly [email protected]English • 4 days agoThere is a fee to close my HSA accountslrpnk.netmessage-square89fedilinkarrow-up1415
arrow-up1415imageThere is a fee to close my HSA accountslrpnk.net@[email protected] to Mildly [email protected]English • 4 days agomessage-square89fedilink
minus-square@[email protected]linkfedilinkEnglish6•4 days agoOnce you hit 65, you can withdraw HSA funds for any purpose, tax free, like a Roth IRA. 401k withdrawals will be taxed as ordinary income, so an HSA dollar is worth about $1.20 in a 401k.
minus-square@[email protected]linkfedilinkEnglish4•4 days ago401k money is taxable as regular income on withdrawal. The expectation is you will be in a lower tax bracket after retiring, so you win. HSA is not taxable, although I don’t know if that’s just when used for medical expenses
minus-square@[email protected]linkfedilinkEnglish5•4 days agoAfter 65 they don’t audit what you withdraw for.
Why is it better than unmatched 401k?
Once you hit 65, you can withdraw HSA funds for any purpose, tax free, like a Roth IRA. 401k withdrawals will be taxed as ordinary income, so an HSA dollar is worth about $1.20 in a 401k.
401k money is taxable as regular income on withdrawal. The expectation is you will be in a lower tax bracket after retiring, so you win.
HSA is not taxable, although I don’t know if that’s just when used for medical expenses
After 65 they don’t audit what you withdraw for.