I took the Investing course but I still don’t understand why the HSA option is so high on the list. I understand all of the great benefits, but why is it before a Roth IRA? Thank you!
Hi Angie,
This is because the HSA has more tax benefits than a Roth IRA [when you spend the money on qualified medical expenses]. Of course this benefit only holds true if a high deductible health plan aligns with your needs, so it’s not necessarily beneficial for everyone!