Quote:
Originally Posted by Chocaholic
Marc…why use highly taxed income to pay medical expenses that should be covered by your untaxed HSA? Surely your tax rate is higher now than it will be after you’ve retired.
Maybe I’m misunderstanding something?
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Mike, yes I expect our tax rate when retired will be lower than the current rate, but the earnings on the HSA investments in mutual funds will continue to grow - tax free forever - and will eventually be used for medical expenses. Essentially it's treated like a ROTH IRA - but the money was never taxed.