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CNBC

This triple tax-advantaged account might beat your 401(k) plan

By Darla Mercado

Meanwhile, distributions from an HSA are tax-free if they’re for qualified medical expenses. But if you pull the money out for other reasons, you’ll pay income taxes and a 20% penalty that’s in effect until you’re 65.

“If you know you’re using the money for those medical expenses, the HSA is much more attractive than putting the money in the 401(k),” said Eric Bronnenkant, CPA and head of tax at Betterment.

That said, you don’t have to choose one account over the other.

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This article originally published September 18th, 2019 on CNBC