HSAs are «triply tax-favored» because they offer these benefits: Roth IRAL`investment in a Roth IRA can help you build more tax-exempt income for the future. Revenue increases tax-free and qualified withdrawals are generally exempt if you meet certain requirements. This allows you to keep more of your income – which is especially advantageous if you expect to be retired in a higher tax bracket. If you think you`ll be retired in a lower tax bracket — or if your income is currently too high for a Roth IRA — you should consider a traditional IRA. Here are the highlights to start a conversation with your advisor: If you`re eligible for your employer-sponsored 401(k) plan, the company game (if you offer it) is literally free money. If you get professional income (1099 declared), you can contribute to an employment engagement plan (SIMPLE) IRA, a simplified occupational pension (SEP) IRA or a Solo 401(k), even if you already contribute to a 401(k) with your main employer. Before you maximize both your 401(k) business and any of these plans, check the IRS contribution limits and talk to your financial or tax advisor. A health savings account or HSA fulfills a dual mission: it can help you pay for medical expenses now, and it`s an option to save for retirement. To qualify for an HSA contribution, you must have high-deductible health insurance.

Your employer-sponsored plan likely offers a number of investment options, and your advisor can help you choose the ones that suit your financial goals, risk tolerance, and time horizon. Taxed income and contributions are only taxed in the event of withdrawal. . . .