« Medicaid Health Opportunity Accounts | Main | Lawsuit helps Health Savings Account owners »
October 24, 2005
HSAs will be Bigger than IRAs
U.S. Bank’s Daniel Kelly has predicted that eventually, Health Savings Accounts "will be significantly larger than the IRA market."
The tax benefits of a Health Savings Account far exceeds those of an IRA, 401(k) and every other tax advantaged account. If you have only so much money to put away for retirement, you should put it in your Health Savings Account first.
The reason is that while the money grows tax deferred like an IRA and 401(k), an HSA is the only vehicle that allows you to take money out tax-free, if it is used to pay qualifying medical expenses. Additionally, any money deposited in your account is tax-deductible.
James Knight, Chairman of 1st Pacific Bank of California, expects up to $300 billion per year will be deposited in HSAs. Newt Gingrich, a proponent of HSAs, has predicted that the average HSA-holder will have $250,000 in his account upon retirement.
Get an instant health insurance quote to see if an HSA is right for you.
Posted by Wiley Long at October 24, 2005 03:09 PM