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|Subject: Re: IRA vs. HSA?||Date: 12/7/2004 10:30 PM|
|Author: RBMunkin||Number: 43456 of 74759|
I just discovered...you are right that the expenses have to be for medical even after age 65, or you pay taxes, but not the penalty. So it's still better than a tradition IRA -- both are tax deductible but with the IRA ALL withdrawals are taxable. With the HSA, only those not used for medical expenses is taxable.
"if you spend your HSA, you're not going to have it during retirement."
But that's no different than the IRA. With either one, just don't spend it until retirement.
My HSA fees are very modest. No worse than an IRA. I have Roth and HSA and SEP - I'm going whole hog!
HSA's are quite a bit better than MSA's in that you can contribute much more money per year - 100% of the health insurance deducible instead of 65% or 75%, with a limit of $2600 or $5150 (single vs. family plans).
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