Here's Why HSAs Are Massively Underrated Retirement Accounts
People usually think of a 401(k), IRA, or Roth IRA when it comes to retirement accounts, but the health savings account (HSA) rarely comes to mind. HSAs might not be designed specifically for retirement, but they can be a powerful piece of anyone's financial plan. That's especially true for seniors.
HSAs are one way that the U.S. government encourages people to save for medical expenses. They allow people who have high-deductible health plans to set money aside for costs that aren't covered by insurance, such as copays.
HSA contributions are tax deductible, so they're popular with accountants. If there's no immediate need for medical care, these assets can be invested over time for growth until there's a cash need. It can function as a rainy day fund for anyone who recognizes that they'll incur medical expenses at some point in the future. The investment options vary among providers, but most offer a range of mutual funds or exchange-traded funds, along with tools to figure out the best allocation. Some even allow you to buy individual stocks and bonds. In any case, the returns generated in the HSA accumulate tax-free.
Source Fool.com