🏥 Tax-Advantaged Accounts: Saving Smart

Explainer

These accounts help you save for health care, education, and retirement with tax benefits.

Types:

• HSA (Health Savings Account): Pre-tax contributions, tax-free withdrawals for medical expenses
• FSA (Flexible Spending Account): Pre-tax, “use it or lose it” annually
• 529 Plan: Tax-free growth for qualified education expenses

Comparison: HSA vs. FSA

• HSA: Rollover allowed, can be invested, portable
• FSA: Annual “use-it-or-lose-it,” tied to employer

Guide: How to Use Effectively

Contribute enough to cover expected expenses

Invest HSA funds for long-term growth if possible

Track eligible expenses to maximize savings

Trends in 2025

• HSAs expanding into retirement planning tools
• More employers offering 529 plan matching
• Growing use of digital expense tracking apps