Benefits enrollment season is here, and with it comes an opportunity for workers to tune up their workplace savings plans and sock away more money on a tax-favored basis. Traditional tax-deferred accounts, like 401(k) plans and individual retirement accounts, are just the beginning for savers. With the proliferation of high-deductible health care plans as employers aim to reduce their costs, more employees are gaining access to health savings accounts – which allow savers to contribute on a pretax or tax-deductible basis, grow on a tax-free basis and permit tax-free withdrawals if they’re for qualified health expenses. In 2023, there were $123 billion in HSA assets held in more than 37 million accounts, reflecting a 19% increase in assets from the prior year, according to Devenir Group . As tempting as it may be for savers to plow money into HSAs and other tax-favored accounts, they’ll need to draw up a strategy before they do so.
