More Investors Looking at HSA’s as the New 401k – Here’s Why

In recent years US companies have been accepting health savings as an employee benefit. Many businesses increasingly see HSAs as intended plan developers — as a health care spending vehicle that allows users to save on health care expenses on a tax-advantaged basis.

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That premise seemed so good that US consumers now hold over $100 billion in HSAs, the highest funding point since health savings accounts were introduced in 2003.

“The reason HSAs are so popular and so powerful is that they have three tax benefits; you get a tax deduction for putting money in, it grows tax-free and it comes out tax-free if it’s used for medical expenses,” said Childfree Wealth founder Jay Zigmont.

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