ByteOnBikes@slrpnk.net to Mildly Infuriating@lemmy.worldEnglish · 2 months agoThere is a fee to close my HSA accountslrpnk.netimagemessage-square89fedilinkarrow-up1423arrow-down17
arrow-up1416arrow-down1imageThere is a fee to close my HSA accountslrpnk.netByteOnBikes@slrpnk.net to Mildly Infuriating@lemmy.worldEnglish · 2 months agomessage-square89fedilink
minus-squareieatpillowtags@lemm.eelinkfedilinkEnglisharrow-up2·2 months agoWhy is it better than unmatched 401k?
minus-squareAA5B@lemmy.worldlinkfedilinkEnglisharrow-up4·2 months 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-squarephdepressed@sh.itjust.workslinkfedilinkEnglisharrow-up5·2 months agoAfter 65 they don’t audit what you withdraw for.
minus-squaretburkhol@lemmy.worldlinkfedilinkEnglisharrow-up6·2 months 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.
Why is it better than unmatched 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.
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.