What is a Health Savings Account and How Can It Build Your Wealth?

We are big fans of the HSA. It is a triple tax-advantaged account for eligible U.S. taxpayers and has some nice flexibility in how you can use it. Your contributions to an HSA provide an upfront tax deduction. A family can contribute $6,650 in 2015 and an individual can contribute $3,350. If a family were to max this account out and is in the 33% tax bracket, tax savings would be in excess of $2,200. That’s no small change. The money can then be invested and grow tax-deferred, and you can take the money out of the account tax-free for health purposes. There is no other investment account like that. Beyond that, the money in the account is always yours. The HSA is one such account that is both about your health and your wealth.

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