and tax-free to boot.

I have an HSA, but I'm painfully aware of how it's just another boondoggle for the wealthy. I can dump cash into it on top of the limits for my 401k and IRAs, and pull it out tax-free with no limits once I turn 65.

Another good example of how an idea that sounds fairly good on paper turns out to be another benefit for the rich in real life.

If you aren't reimbursing medical expenses, the money is taxed, even when you are 65+. (It functions sort of like a Traditional IRA in that circumstance.)

The real trick is to save medical receipts for years/decades and reimburse only when you actually need the money, paying out of pocket until then.

What I mean is yes, indeed, it functions like an additional traditional IRA, gains are accumulated tax free, and the balance can be withdrawn in any way you want post-65.

Does that trick actually work?

> Does that trick actually work?

There is no time-boxing on reimbursement, so it should. HSAs are only about a decade old, so no one has done the extreme versions of it yet, but a decent number of folks are squirreling away receipts and letting the money grow.

Why wouldn't it? There's no time limit on using the funds and no time limit on reimbursing yourself for medical expenses.

Kinda like a backdoor Roth, no rules prevent it, so it works.