In the past, I’ve talked about reasons why you may want to have multiple retirement accounts and how you may end up having multiple places from which you draw your money in retirement. While I’ve mostly focused on IRAs and 401(k)–as well as other employer retirement accounts–I haven’t really talked about another important retirement account you will want to have, a Health Spending Account (HSA). You’re probably familiar with what an HSA is through your employer benefits as it is commonly offered by many employers as a part of health insurance benefits these days. HSAs allow you to save for future medical expenses as well as reduce your taxable income. If you are on the younger side, one of the biggest draws to an HSA is the tax advantages they offer; HSA contributions are tax-deductible, the money in the account grows tax free, and the money can come out tax free. Given that there are questions as to how long Social Security as well as how Medicare/Medicaid may look in the future, it’s important that you take steps to save for medical costs in the future, especially if you fall within the Generation X or Millennial age brackets. HSAs can be an efficient and effective way to do so. Furthermore, if you start and HSA, you should include it as part of your financial planning for retirement, along with any IRAs or 401(k)s you may have. If you don’t have an HSA, you may want to look into starting one during the next enrollment period for your health insurance benefits (that is if your company offers it). As for how it fits in with your retirement planning, you should speak with a certified financial planning expert if you have any specific questions.