I am considering switching to a HDHP HSA plan. I think I understand most of the pros/cons, but am particularly interested in the HSA as a savings vehicle. Specifically the scenario where you allow it to grow without using it for current or near-term medical expenses. I understand that in the future you can take HSA distributions based on previous medical bills - even from many years before the distribution.
I seem to be coming to the conclusion that HSAs are most advantageous for (probably rich) people who have large medical bills. They can effectively launder that money into a very tax advantaged account and use it to buy things later in life. If you currently have low medical expenses, then you won't be able to withdraw much tax free down the line.
Except for the case where an HSA turns into a tIRA at age 65 which is nice. Is that the primary reason people in this community would consider HSA? Am I missing something?
I seem to be coming to the conclusion that HSAs are most advantageous for (probably rich) people who have large medical bills. They can effectively launder that money into a very tax advantaged account and use it to buy things later in life. If you currently have low medical expenses, then you won't be able to withdraw much tax free down the line.
Except for the case where an HSA turns into a tIRA at age 65 which is nice. Is that the primary reason people in this community would consider HSA? Am I missing something?