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Showing posts with the label BuildingwealthforthefutureRothIRAandHSAexplained.

Prioritizing Funding: Roth IRA or HSA - Which Comes First? #shorts #youtubeshorts

In today's video, Tim Uihlein, Partner and Senior Wealth Manager discusses whether you should fund a Roth IRA or an HSA (Health Savings Account) first. The answer depends on your age, income, and health status. If you have the ability to contribute to both, it is generally recommended to start with a Roth IRA if you are young. This is because a Roth IRA offers tax-free growth and tax-free distributions, making it an efficient long-term investment vehicle. However, keep in mind that there are income limits for contributing to a Roth IRA, and as you earn more, you may phase out of eligibility. On the other hand, if you are older or have higher income, an HSA could be a good choice. To contribute to an HSA, you must have a high deductible health plan. The HSA provides triple tax advantages: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. It can serve as a valuable tool for saving for healthcare costs in re...