How much does the government want consumers to use health savings accounts to pay for healthcare expenses?
So much that it has made the HSA the only triple-tax-advantaged vehicle in the whole tax code: you contribute dollars on a pretax basis, your money compounds on a tax-free basis, and withdrawals for qualified healthcare expenses are also tax-free. After age 65, HSA funds can be used for non-healthcare-related expenses, though withdrawals for expenditures other than healthcare will be taxable.
Written By: Christine Benz
Published By: www.morningstar.com