4. You should fund a Health Savings Account
When you have a high-deductible health plan with a Health Savings Account (HSA), you can invest your dollars there. HSAs are triple tax-free: Money goes into them pretax via a paycheck deduction (or, if you put it in yourself, it’s tax-deductible); it grows tax-free, and it’s not taxed upon withdrawal as long as you consider using it for medical costs.
That means passing money you use in the short-term through the account saves you roughly 25 percent on all your medical expenses. But you can also invest your dollars in the account and allow them to grow.
When you turn 65, withdrawals not used for health care are treated just like 401(k) withdrawals and taxed at your current income tax rate. “If you haven’t maxed out your HSA contributions for the year (the contribution limit is $3,500 for individuals and $7,000 for families in 2019), you can increase your payroll contribution and invest it in a broad stock market fund…it’s even better than a Roth IRA because it’s pretax and tax-free growth,” adds Meyer
