Why is an HSA better than a 401(k) for many savers?

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Accepted Answer

An HSA is the only account with a triple tax advantage: contributions are deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free too. A 401(k) gives you two of the three. If you can afford to pay current medical costs out of pocket and invest the HSA, it compounds like a super-Roth. After 65, non-medical withdrawals work like a traditional IRA.

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