Should I use an HSA as a retirement account?

If you're eligible and have the extra funds available, I'd encourage you use a Health Savings Account (HSA) in addition to your 401(k). An HSA gives you:

• income tax deductions
• tax-free withdrawals when used for eligible medical expenses
• opportunity for tax-free growth of your contributions, and
• the opportunity to eventually use the funds for retirement purposes if you never need them for medical expenses

You can only have an HSA if it's paired with a qualifying High-Deductible Health Plan (HDHP). For 2015, an HDHP means:

• annual minimum deductible of $1,300 (self only) or $2,600 (other than self only), and
• annual out-of-pocket (OOP) maximum of $6,600 (self only) or $13,200 (other than self only)

Tax-deductible contribution limits to an HSA for 2015 are $3,350 (self only) or $6,650 (other than self only).

Assuming you are part of a high-deductible health insurance plan which makes you eligible for an HSA account, I would strongly advise contributing to this in addition to the company 401(k).  Contributions to the HSA not only reduce your taxable income, but the withdrawals are tax free as long as they are used for qualified medical expenses.  Depending on your budget, you may want to consider paying medical expenses out of pocket for some length of time so that your HSA can continue to grow tax free.