Roth IRA vs. Health Savings Account (HSA): Which Is Better?

If you only had $5,000, would you put it in a Roth IRA or a Health Savings Account (HSA) account?

Watch The Great Debate between tax attorneys and bestselling authors, Mat Sorensen & Mark J. Kohler on how to best grow your money tax-free.

Some key comparisons:

ANNUAL CONTRIBUTIONS

• HSA gives you a tax deduction. You can contribute Single $3,650 and Family $7,300.
• Roth IRA has no tax deduction. You can contribute $6,000 per person + $1,000 if 50 or older.
• Roth IRA for Kids with income.

GROWTH

• Both the HSA and Roth IRA grows tax-free.

DISTRIBUTION

• Health Savings Account has no tax on distribution BUT ONLY FOR QUALIFYING MEDICAL.
• You can distribute contribution and growth at any age.
• Roth IRA has no tax on distribution BUT ONLY AT 59.5 OF AGE.
• Can distribute for anything.
• Contributions can be distributed at any age.

Which account is better?

It depends on the person, their goals, health and finances.

Schedule a Free 15-minute new account phone appointment with one of our experienced Senior Account Executives regarding what type of account is best for you. https://directedira.com/appointment

This is Directed IRA Podcast: EP68.

For questions or to learn more about this episode's topic, book a call with an IRA specialist here: https://directedira.com/appointment/

Interested in learning more about alternative investments? Join us this year at the Alternative Asset Summit October 22 & 23, where you'll hear from industry experts and connect with like-minded investors exploring new ways to build wealth: https://altassetsummit.com/

Other:

Mat Sorensen: https://matsorensen.com

Mark J. Kohler: https://markjkohler.com/ 

KKOS: https://kkoslawyers.com

Main Street Business https://mainstreetbusiness.com