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Thumb of Michigan | IF (the big little word) you can 'afford' to pay the HSA qualified medical expense, out of normal budget consider doing so, leaving the dollars to grow in the HSA. Similar to a Roth IRA (some might call it a back-door Roth even) the HSA is available for more expenses during retirement (tax free withdraws), when your tax bracket may be lower.
However, this doesn't work IF your tax bracket is higher in retirement (age 65 actually). Some of the expenses that you can pay with HSA is your Part B, Part D and/or LTC premiums. (not Medigap premiums). You can't pay health insurance premiums before 65, but you can pay LTC premiums. OR just take distributions and pay your regular income tax rate (no penalties after age 65). Hence the need for lower tax rate in retirement.
Here's a piece on HSA after age 65.
https://irahelp.com/slottreport/hsa-rules-get-tricky-once-you-hit-ag... | |
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FYI for those with Fidelity accounts
