There are plenty of alternative uses for everyday items around your home.
Baby wipes make great cell phone screen cleaners. Coffee filters can be used as a protective layer between your dinner plates. Pull out your tube of toothpaste to clean chrome.
Investors can take a page from these do-it-yourselfers and save for retirement with a Health Savings Account.
An HSA is the only account I know of that has a triple tax benefit. Your contribution comes out of your paycheck before taxes. The funds grow tax-deferred. Your withdrawals from the account are tax free if used for qualified medical expenses.
Compare that to a Roth IRA. Your initial deposit to a Roth is post-tax and the funds grow tax deferred. You can withdraw your contributions anytime without tax or penalty, and eventually withdrawals of your earnings are exempt from taxes (if you’ve had it at least 5 years and you are over 59½).
A traditional IRA or 401(k) also provides a double tax benefit, with pre-tax savings and tax deferred growth, but the funds are taxable upon withdrawal.
Here’s how an HSA works to give you a triple tax benefit: If you have a high-deductible medical plan, you can set up a Health Savings Account to pay for out-of-pocket medical expenses. The funds come out of your paycheck on a pre-tax basis, giving you a tax break on the front end. For example, if you are in a 25% tax bracket and save $100 in your HSA, it would…
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