ByteOnBikes@slrpnk.net to Mildly Infuriating@lemmy.worldEnglish · 1 month agoThere is a fee to close my HSA accountslrpnk.netimagemessage-square85fedilinkarrow-up1423arrow-down17
arrow-up1416arrow-down1imageThere is a fee to close my HSA accountslrpnk.netByteOnBikes@slrpnk.net to Mildly Infuriating@lemmy.worldEnglish · 1 month agomessage-square85fedilink
minus-squareieatpillowtags@lemm.eelinkfedilinkEnglisharrow-up2·1 month agoWhy is it better than unmatched 401k?
minus-squaretburkhol@lemmy.worldlinkfedilinkEnglisharrow-up6·1 month agoOnce 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 month ago401k 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-squarephdepressedlinkfedilinkEnglisharrow-up5·1 month agoAfter 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.