Are you aware of the triple tax advantage your HSA account has to offer you? If you’re looking for a place to invest money, deduct contributions from your income tax, and then withdraw money tax and penalty-free after age 65, look no further!

As with anything worth doing, it must be nurtured and cared for over time. There’s a level of diligence required that may hold one back from maximizing this benefit. Hopefully, clicking here solves that problem. That problem for most is scanning and saving receipts!

The reason why I linked you to this particular scanner is that scanning receipts can be inconvenient when you use crappy products. If you have a smartphone, you can scan. Although, that doesn't mean that you will scan anything and also do it time and time again for years to come. So, buy a good scanner (this one here) where you can click a single button and let it date and save your receipts to your “Medical Receipts Paid Personally” folder. Boom. Done.

Now that the hard part is out of the way, the next step is to get to the point where you are maximizing your annual HSA account contributions ($3,650 for individual coverage and $7,300 for family coverage for tax year 2022). Then, invest your savings in that account!

After that mountain is climbed, your next goal will be to no longer use the HSA savings for medical expenses. Instead, pay for medical expenses personally. It took me (Brad) a couple of years to completely avoid using the HSA account to pay for medical expenses. It may take time to get into the groove of paying for medical expenses out of your own pocket, but once you do, the tax planning begins.

Now that you’re scanning receipts, contributing to your HSA account, and paying medical expenses out-of-pocket, continue to do this year over year until you reach the age of 65. When you turn 65 and have piles of money in your HSA account that grew pre-tax, you can reimburse yourself tax-free from the receipts you’ve kept over all the years of paying for your medical expenses out-of-pocket.

Now THAT is a powerful tax plan. Why? Because 1) you’re deducting HSA contributions from your income tax. 2) Letting it grow tax-free. And, 3) Pulling it out tax and penalty-free as a reimbursement instead of the money being income taxable to you like a traditional IRA and 401k will be.

Buh bam! Totally tax-free money that you also got to deduct from your income over all of the years you contributed.

Now for the hardest part… GO DO IT!!