1 Based on the results of a hypothetical illustration where $2,000/year was contributed into both a Retiree Health Care Account (RHCA) and a 403(b) plan for 30 years. The assets in both accounts grew at a 6% interest rate each year and this resulted in an after-tax total accumulation amount of $162,419 from the RHCA compared to $108,821 from a tax-advantaged retirement savings plan. This assumes a 33% tax-rate. Individual rates will vary.
This material is for informational or educational purposes only and does not constitute investment advice under ERISA. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor's own objectives and circumstances.
The TIAA Health Savings Account is administered by HealthEquity Inc. TIAA and HealthEquity are not legally affiliated.