Assuming one has enough cash flow to pay for healthcare expenses as they come from after tax income AND max out HSA contributions, then there can be significant gains just from compounded equity returns for many decades before the HSA contributions are liquidated.This has nothing to do with the OP's situation, as the OP is looking at $15K+ in charges.OTOH, I contributed a tax-deductible $4850 to my HSA last year and I haven't used a dime of it.I don't disagree at all. Depending on each person's specific facts, however, this lack of flexibility may or may not be meaningful. In other words, with regular and predictable spending, plenty of people max out their healthcare FSA's anyway, which makes them a no brainer. For other people, it makes sense to allocate less than the contribution maximum. Again, it's fact specific.The FSA is only useful if you have a good idea what you'll be spending on healthcare in a year. It isn't very, um, flexible.
Statistics: Posted by OrangeKiwi — Sun Jun 09, 2024 2:10 am — Replies 116 — Views 7176