HSA Vs. 401(k): Where Should Your Money Go?

Maurie Backman, The Motley Fool
·3 min read
HSA Vs. 401(k): Where Should Your Money Go?

If your employer sponsors a 401(k) plan, you can enjoy tax-free contributions and tax-deferred growth in a traditional 401(k), or tax-free growth and tax-free withdrawals in a Roth 401(k). Meanwhile, if you have a health savings account (HSA), you can enjoy three types of tax savings in the course of socking money away for healthcare spending. HSA contributions are tax-free, investment gains are tax-free, and withdrawals are tax-free, as long as they're used to pay for qualified medical expenses.

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