Comparing HSAs to 401(k)s and IRAs

Here’s how HSAs stack up with two other popular retirement investment vehicles, 401(k)s and IRAs:

	HSA	401(k)	IRA
Do you have to pay federal tax on contributions?	No	No	No
Do you have to pay state tax on contributions?	No, unless you live in CA, AL, or NJ	No	No
Do you have to pay FICA on contributions?	No	Yes	Yes
Do contributions grow tax-free?	Yes, unless you live in NH or TN	Yes	Yes
Are you taxed on withdrawal for non-medical costs?	Yes	Yes	Yes
Are you taxed on withdrawal for medical costs?	No	Yes	Yes
Is there a required minimum distribution?	No	Yes	Yes

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