Anytime I try to do my benefits the description isn’t helpful in explaining why it’s such a good investment move, aside from stating the obvious that it saves money incase you need it. Do I have to invest it? Or do you just let it sit? I’m confused
In: Economics
It’s tax-advantaged. You can contribute to it with pre-tax income (so it doesn’t count as income towards taxes), and if you use it for medical expenses it’s not taxed on the way out, either. If you withdraw from it after retirement just for the cash, it’s taxed and acts like an IRA.
So yeah the big advantage is that if you use one and plan ahead to have this ready to pay for qualified medical expenses, it’s tax-free. And if you end up not needing it, it’s retirement money.
Latest Answers