Aside from an employer-sponsored 401(k) plan, a health savings account(HSA) is a great savings vehicle for employees as part of an overall retirement plan strategy, according to Forbes. An HSA offers triple tax benefits: 1) tax-deductible contributions, 2) tax-exempt growth on savings, and 3) tax-free withdrawals if the money is spent on qualified healthcare expenses. When saving for retirement, employees may want to max out their HSA contributions after contributing enough to a 401(k) and getting their employer's match. After which they may want to consider maximizing their 401(k) plan contributions.
Happy Thanksgiving!