HSA accounts are also considered “triple tax-deferred,” because you can contribute pretax dollars, pay no tax on earnings, and withdraw money tax free if used for qualified medical costs. Further, once you turn 65, you can make withdrawals for any reason (including nonmedical) penalty free; only income tax would apply. 3: Consider backdoor Roth IRA contributionsGiven dentists’ high level of earned income, it is likely that you are not able to make a regular contribution to a Roth IRA. First off, any growth within these accounts is tax-deferred, and future withdrawals made to pay for qualified education expenses are tax free as well. Any potential growth on assets that remain in a DAF is tax free as well.

Source: Forbes December 12, 2023 17:01 UTC