You can strengthen your HSA’s growth potential by contributing to the account over the long term, and investing your contributions into mutual funds or exchange traded funds, if they’re available at your provider.
Consider allowing your account to grow, as a couple’s retirement healthcare costs can run as high as $275,000, according to Fidelity. That figure excludes the cost of long-term care.
Be aware of the consequences that may come up if you die while holding an HSA: If your spouse is the designated beneficiary, then the IRS treats the account as though it belongs to him or her.
If someone else is the beneficiary of the account, then the account is no longer an HSA and its fair market value becomes taxable to the recipient in the year you die.
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