I Wish I Had Access to This Awesome Account. Don't Waste The Opportunity if You Do

There are a few different tax-advantaged accounts that offer you the ability to save for your future while paying a little less to the IRS. However, there is one account that stands apart from the others because it offers a triple tax break.

I wish I had access to this account, but unfortunately I don't -- and not everyone does. If you're one of the lucky ones who can use it, you absolutely shouldn't pass up the chance. Here's what the account is, along with some details about what makes it so great.

This account offers unbeatable tax breaks

One of the best accounts for tax breaks is a health savings account, or HSA. These accounts allow you to:

• Invest your money and deduct the amount you invested in the year you contributed to the account.
• Grow your money tax free and leave it invested for as long as you want.
• Withdraw your money tax free if you're using it for a qualifying medical expense or withdraw it for any purpose after age 65 and just be taxed on distributions as ordinary income -- the same way you would for a 401(k).

If you are using the money in your account to cover medical expenses, you get that triple tax break. You basically don't ever have to pay taxes on the money you invested or on the gains that came from your investment. Since many seniors face high medical bills and spend tens of thousands of dollars paying out-of-pocket care costs for expenses Medicare won't pay for, an HSA can be a really great way to save for retirement.

While you can take money out of your HSA at any time in your life when you have a qualifying medical expense, keeping the money invested for as long as possible in order to let it grow and use it as a senior can be especially beneficial since you do get to enjoy tax-free compound growth. This is the growth that happens when your money earns returns, which are reinvested and earn returns of their own.

Are you eligible to contribute to an HSA?

I am unfortunately not eligible to contribute to an HSA because I don't have the right kind of health plan -- and many other people also can't use this account. You can only contribute to an HSA if you have a qualifying high-deductible plan. For 2024, this means your plan must:

• Have a minimum deductible of $1,600 if you have self-only coverage
• Have a minimum deductible of $3,200 if you have family coverage

Your plan also has to comply with certain requirements for maximum out-of-pocket limits, and you must not have other coverage that disqualifies you from using an HSA. If you are buying your health plan from Healthcare.gov, you can filter the plans available and pick only plans that are HSA eligible. If you already have a plan, or have coverage through your employer, you can ask your insurer or the company you work for if you're allowed to contribute to an HSA.

If you are eligible for an HSA, you should make sure you contribute to it out of your bank account so you can get the great tax benefits this plan offers. For 2024, those with self-only coverage can contribute up to $4,150, while those with family coverage can contribute up to $8,300. Those age 55 and older can add an extra $1,000 catch-up contribution as well. Start working on making your contributions ASAP so you can get as close as possible to maxing out these limits and taking full advantage of the tax breaks on offer.