HSA as additional tax-deferred savings?

[teejayevans]

Taking from HSA now or later depends on tax laws and return of HSA vs
taxable accounts. My HSA is definitely way more expensive than VG.
I attached a quick and dirty spreadsheet to illustrate.
TJ

 

[Finance Dave]

I think if you can use it today to pay medical costs you should, because
you will not pay taxes on that money. If you treat it as a IRA, it will be
taxed at normal rates, yes they may be lower in retirement, but unlikely
to be zero.
TJ

I am not treating it as an IRA. I will use the money for medical costs eventually, just not now. I will not pay taxes on this money....ever.

There is no way I will avoid incurring in medical costs the amount I'll be able to build in my HSA. We have about $11,000 today, we're adding $3k/year each, and will rehire in about 5 years...so I'm estimating we might get up to about $60k. If we don't spend $60k on medical costs from age 53 until we do, I'll be a monkey's uncle.

Remember you can even use the money on LTC, OTC meds, etc. That money will go FAST. Heck, we've spent $6k this year alone on 2 colonoscopies, an EGD, and a couple doctors office visits.

 

[Finance Dave]

thanks to everyone for your thoughts...I think I'm on the right track.