Why is a Health Savings Account (HSA) the equivalent of hitting the investing trifecta? Well, because it gives you three (3) tax breaks. It’s normally hard to even get one (1) tax break!

So, what are the three (3) tax breaks. First, you can deduct your HSA contributions from your current year’s income. Second, your earnings grow tax free inside of a HSA. And finally, your withdrawals are also tax free if used for qualifying medical expenses. Those three benefits are not too bad in and of themselves. But HSAs have one more trick up their sleeves. HSAs don’t require the “use it or lose it” provision of Flexible Spending Accounts (FSAs), i.e., your account can continue to grow through the years.

However, with the good must come the bad, it seems. They are a few flies in the ointment with HSAs. For example, HSA accounts are only available for those who purchase high-deductible health plans (HDHPs), HSA investing accounts are often subject to high fees, and the contribution limits are rather small.

Nevertheless, every little bit helps when saving for retirement. Especially considering that most health care cost estimates for a couple retiring in 2018 come in around at $250,000+ for lifetime medical expenses. So here are the new contribution amounts for 2019:

2019 Maximum contribution limits

Single - $3,500 (up $50 from 2018)

Family - $7,000 (up $100 from 2018)

For more information about 2019 HSA limits, please click on the title above.