Ashlie, 23, graduated from State University in 2020 and started her first full-time job. Her company offers a high-deductible health plan (HDHP). When preparing her tax return, she asks whether a health savings account (HSA) would be a good fit for her. Which of these answers is most correct?

Since Ashlie has generally been in good health, an HSA has no real benefit for her.

HSAs grow tax-free, so they can be used to lower taxable income while also acting as a secondary retirement vehicle. The funds do not expire at the end of the year or if you change companies.

HSAs are excellent vehicles, but Ashlie should look at an independent plan so she is not tied to any one employer. Her contributions to that plan would still be income tax-free.

Health savings accounts (HSAs) and flexible spending accounts (FSAs) are basically interchangeable, so Ashlie could sign up for either and it would be fine.