I work for the state and am in the state pension system. We recently have been offered the opportunity to open health savings accounts through our health benefits plan.
I am less than familiar with HSAs and have been trying to do some homework on them. I currently have a traditional IRA established from previous 401k rollovers that I fund every year to supplement my pension. I don't yet have the income to fund both an HSA and the IRA but I think that when I pay off my house in ~4 years this might be possible.
As I understand it, the health savings account is pre-tax, and you can withdraw for health-related expenses tax free, and that after age 65 it basically follows rules similar to an IRA where non-health related disbursements can be drawn.
At first blush something that can be used to defray medical expenses like an HSA seems like a good idea. The fact that it reverts to something that looks like an IRA at retirement is a nice feature especially since my IRA is really a supplement to my pension, but it locks up funds that might be needed in a medical crisis.
Can I actually fund both an HSA and an IRA at the same time? If there is an overall contribution limit, is there actually any reason to continue to fund an IRA instead of an HSA?
Submitted April 12, 2017 at 08:57PM by Relaxed_Engineer http://ift.tt/2oZoPB4
