This Triple Tax-Advantaged Retirement Account Is Getting a Big Boost for 2025
The IRS doesn't always give away tax breaks for free. Often, there's some sort of catch involved.
With a traditional IRA or 401(k) plan, for example, you get a tax break on the money you contribute. But in return, you're not allowed to access that money before age 59 1/2, and taking an early withdrawal generally results in an expensive 10% penalty.
Health savings accounts, or HSAs, work similarly. While these accounts are loaded with tax breaks, there are strict rules you have to follow to avoid being penalized for taking a non-qualifying withdrawal. But because the tax benefits of HSAs well outweigh the drawbacks, these plans are definitely worth saving in provided your health insurance plan is compatible.
Source Fool.com
