The Secret (and Completely Legal) Way to Hack Your HSA

How to pay for non-medical expenses with your tax-free medical funds.

Photo by Andrea Piacquadio from Pexels

The Health Savings Account (HSA) has been hailed as the holy grail of health financial products due to its triple tax advantage.

• Contributions are tax-free
• Asset growth is tax-free
• Withdrawals are tax-free

We can also add in this little tidbit: there is no time limit for reimbursements.

What can we do with that?

Pay Now. Earn Later

With no time limit, we can get reimbursed for any qualified medical expense 1, 5, 10, 20 years down the line.

It doesn’t matter.

There’s no time limit!

None. Nada. Zip. Zilch. Zero.

You might be wondering why I’m so excited about this, and I’m about to tell you.

Are you ready?

Since there is no time limit, you can pay for medical expenses using taxed income now, then get reimbursed to pay for something else in the future with tax-free money.