There are a slew of different retirement accounts, and choosing one can be tricky. But for personal finance expert and New York Times bestselling author Suze Orman, a health savings account is “one of the best retirement accounts out there.”

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As Fidelity explains, an HSA is a tax-advantaged account you can open if you have an HSA-qualified high-deductible health plan. You can use it to pay for certain medical expenses, such as copays, prescriptions, dental care, contacts and eyeglasses, bandages and X-rays. It is considered tax-advantaged because the contributions decrease your taxable income, and the money isn’t taxed while it’s in the account, Fidelity added.

In addition, “Unspent HSA funds roll over from year to year, allowing you to build tax-free savings to pay for medical care later,” according to HealthCare.gov, which added that HSAs may earn interest, which is not subject to taxes.

“A health savings account is probably, when used correctly, is one of the best retirement accounts out there because you get a tax deduction when you put the money in and when you go to take it out for a qualified medical expense it is tax free, and it covers almost absolutely everything except certain dental services,” Orman said in a March 2024 episode of her podcast, “Women & Money.”.

Orman added, however, that while these accounts are extremely beneficial, they are for health needs. In other words, they do not replace your retirement accounts.

“It does not replace your 401(k) or your 403(b) or your TSP,” she said. “It does not replace a Roth IRA. So just know that it works in conjunction with those retirement accounts.”

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This article originally appeared on GOBankingRates.com: Suze Orman: Get an HSA — It’s ‘One of the Best Retirement Accounts Out There’