HSA Triple Tax-Free Benefits

March 21, 2023
HSAs offer a triple tax-free benefit from tax deductions for contributions, tax-free growth, and tax-free distributions for qualified health expenses. One of the best ways to utilize an HSA for long-term wealth building is to make maximum contributions, invest for growth, use other funds to pay for medical costs, and then use the look-back allowance to spend HSA dollars at a much later date after they’ve compounded in value. With the look-back allowance, qualified health expenses can be reimbursed going back to the inception of the account if there are receipts for the transactions. If you have a high deductible healthcare plan, HSAs can be funded in addition to employer-sponsored retirement plans to maximize savings and investment potential.

At Brandywine Oak, we guide our clients through structuring their assets to maximize their wealth and minimize their lifetime tax obligations. To learn more about HSAs and their benefits, please read Financial Advisor Magazine’s