ByteOnBikes@slrpnk.net to Mildly Infuriating@lemmy.worldEnglish · 1年前There is a fee to close my HSA accountslrpnk.netimagemessage-square87fedilinkarrow-up1423
arrow-up1423imageThere is a fee to close my HSA accountslrpnk.netByteOnBikes@slrpnk.net to Mildly Infuriating@lemmy.worldEnglish · 1年前message-square87fedilink
minus-squareieatpillowtags@lemm.eelinkfedilinkEnglisharrow-up2·1年前Why is it better than unmatched 401k?
minus-squaretburkhol@lemmy.worldlinkfedilinkEnglisharrow-up6·1年前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.
minus-squareAA5B@lemmy.worldlinkfedilinkEnglisharrow-up4·1年前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
minus-squarephdepressed@sh.itjust.workslinkfedilinkEnglisharrow-up5·1年前After 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.