Some employees have access to an HSA today and are unaware of it. Unlike an FSA which requires that money in the account be spent by the end of the calendar year, an HSA carries over from one year to the next. An HSA is a health savings account that can be paired with a HDHP (high deductible health plan). For those who don’t spend much on healthcare from one year to the next, you can invest the money in an HSA to continue to grow just like your 401K.
The money can be pulled out to pay for qualifying health expenses at any time even if the expense occurred years before. These accounts also are tax deductible going in, grow tax free, and aren’t tax when used so they are more efficient then your 401K or 403b when paying expenses in retirement. If you have a HSA option and you have low relative health costs, now is probably a good time to consider using this to further lower your tax liability.