"[H]igher-income households are more likely to pay for medical expenses out-of-pocket while letting their HSA balances grow tax-free -- essentially turning the HSA into a tax-advantaged investment or retirement vehicle. This can provide larger tax benefits in the long run than using HSA funds for medical care. In contrast, lower-income households are more likely to use HSA funds as they are deposited, missing the long-term tax advantage by treating the HSA more like a Flexible Savings Account."  MORE >>