Health savings accounts (HSAs) are projected to surpass $100 billion in assets in 2023, showing that consumers are realizing the potential power of HSAs, including as a significant wealth-building tool.  Time Limit – HSA plans have no reimbursement time limit, allowing taxpayers to wait until they are ready to receive reimbursement for medical expenses.  HSA funds can thus be allowed to grow tax free.  Future Eligible Expenses –  once an HSA is established, meaning the account holder has deposited at least $1 into the account, any future expenses incurred are eligible for reimbursement from the HSA as long as the account exists.

For example, a retiree may have accumulated a large pre-tax surplus in their HSA over time.  If that person also has a record of the past years of medical expenses incurred throughout their working years and not reimbursed through the HSA, withdrawals can be made against those as reimbursements, and the money spent on whatever the retiree chooses.