HSA (Health Savings Account)

The HSA’s triple tax advantage has no peer: money goes in pre-tax, compounds untaxed, and comes out tax-free for qualified medical expenses. For 2026 the contribution limits are $4,400 for self-only coverage and $8,750 for family coverage (IRS Rev. Proc. 2025-19), plus a $1,000 catch-up at age 55. Contributions made through payroll also skip the 7.65 percent employee FICA, a break even a 401(k) does not get.

Unspent balances roll over forever and the account follows you across jobs, which is what turns an HSA into a stealth retirement account: pay today’s medical bills out of pocket, keep the receipts, and let the invested balance compound for decades. After 65, non-medical withdrawals are taxed like a traditional IRA with no penalty. Project your own balance and tax savings in the HSA calculator.