Tax-Advantaged Accounts Explained

Maximizing Tax-Advantaged Accounts

Understanding tax-advantaged accounts can save you thousands annually and accelerate wealth building.

Health Savings Account (HSA)

The triple tax advantage:

**2024 Limits:** $4,150 (individual) / $8,300 (family)

**Strategy:** Pay medical expenses out-of-pocket now, let HSA grow, reimburse yourself tax-free in retirement.

**Requirement:** Must have high-deductible health plan

Flexible Spending Account (FSA)

Use it or lose it:

**Best for:** Predictable annual medical expenses

529 Education Savings Plan

Tax-free growth for education:

**Best for:** Saving for children's education

Comparison Table

| Account | Tax on Contribution | Tax on Growth | Tax on Withdrawal |

|---------|--------------------:|:-------------:|:-----------------:|

| Traditional 401k/IRA | Deductible | Deferred | Taxed |

| Roth 401k/IRA | Taxed | None | None |

| HSA | Deductible | None | None* |

| 529 | Varies by state | None | None* |

*For qualified expenses

Priority for Tax Optimization