Triple tax advantages: Examining the benefits and burdens of health savings accounts based on income
Love them or hate them, it is hard to see health savings accounts losing traction any time soon. Used in conjunction with high-deductible healthcare plans, the accounts have been touted as a way to put downward pressure on healthcare costs. Even though HSAs are the only triple tax-advantaged vehicle in the tax code allowing for pretax contributions, tax-free compounding, and tax-free withdrawals for qualified medical expenses, few HSA owners fund the accounts to the maximum. HSA critics point out that the high-deductible healthcare plan/HSA combination is a good fit for the “healthy and wealthy” but is apt to be...
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