Originally Posted by Notmuchlonger
Maybe I am not understanding something correctly. If I was retired wouldn't it be better to move 401k money that has avoided taxes into my HSA. That way when I spend it on healthcare it would be truly tax free. When I am retired I will have 3 sources of income a small pension/SS and my 401k. I dont mean to be slow on the uptake just trying to understand this all.
Interesting question......I guess I'll have to sleep on it.
I guess my initial thought was that the more tax advantaged money you had working for you, the better. If you transfer the 401K money (assume it was all of it),then all you have is the HSA. If you put in new money, you have the HSA as well as the 401K. You get a "deduction" for the new after tax money but I don't think you would with the 401K transfer since you already "took it" when you contributed to the 401K (you might want to verify that at
Btw, I guess even tho the link I provided did not talk about 401K transfers specifically, I suppose you could indirectly do it by rolling the 401K money into an IRA first if you had to. Again would be good to verify that and also think about advantages/disadvantages of 401K vs IRA.