No 401(k)? You May Have Another Retirement Savings Option Besides an IRA

By Kailey Hagen, CFP – Apr 3, 2026 at 3:00PM ESTKey PointsYou can contribute up to $7,500 to an IRA in 2026 if you're under 50, or $8,600 if you're 50+.If you'd like to contribute more, you may be able to save in an HSA.You must have a high-deductible health insurance plan to contribute to an HSA.When your employer doesn't offer a 401(k) or another workplace retirement plan, it can feel like an IRA is your only option. Don't get me wrong, it's a good one. You can invest in just about anything, and you get valuable tax breaks that can save you money today or in retirement. The problem is that you can only save up to $7,500 in an IRA in 2026 if you're under 50, or $8,600 if you're 50 or older. If you hope to save large sums each year, that might not be enough. But it might not be your only choice, either. Image source: Getty Images. An HSA could be just what you need Health savings accounts (HSAs) aren't designed as retirement accounts, but they can serve that purpose very well. Contributions to these accounts reduce your taxable income in the year you make them, just as contributions to a traditional IRA do. These accounts allow tax-free medical withdrawals at any age, and once you turn 65, you can take penalty-free withdrawals for any reason. However, you'll pay ordinary income taxes on non-medical withdrawals. HSAs have strict eligibility criteria, though. You can only contribute to one if you have a high-deductible health insurance plan. This is defined as one with a deductible of $1,700 or more for an individual health insurance plan in 2026, or $3,400 or more for family coverage. If you don't check this box, you can spend any HSA savings you already have, or hold on to them. But you can't stash more money here. Those who have a qualifying individual health insurance plan can save up to $4,400 in an HSA this year, while those with qualifying family plans can save up to $8,750. Adults 55 and older can add $1,000 to these limits. How to use your HSA for retirement savings If you hope to use your HSA as a retirement account, there are a few important guidelines to follow. First, you need to invest your HSA funds. Otherwise, they'll earn very little interest each year. Look for an HSA provider that enables you to invest the money in your HSA, just like you could with an IRA. Second, avoid taking medical withdrawals from your HSA before retirement whenever possible. While you may not face any negative tax consequences for tapping your savings to pay for an unexpected doctor bill, this could set your retirement savings back. Finally, make sure you verify your eligibility every year, as it can change. Also, double-check how much you're allowed to contribute each year. The government will likely increase the limits over time.Read NextApr 3, 2026 •By Kailey Hagen, CFPThis Overlooked Rule Could Make Some of Your Roth IRA Savings TaxableApr 3, 2026 •By Maurie BackmanThe Roth IRA Conversion Trap You Don't Want to Fall IntoApr 3, 2026 •By Maurie BackmanThis Could Be the Single Best Way to Protect Your Retirement Savings From Market VolatilityApr 3, 2026 •By Christy BieberAmericans Concerned New Medicare Advantage Coverage Limitation Is Too VagueApr 3, 2026 •By Kailey Hagen, CFPHere's the Average Social Security Claiming Age for Men and WomenApr 3, 2026 •By Kailey Hagen, CFPInheriting an IRA?

Why You May Not Want to Withdraw All the Money at Once.About the AuthorKailey Hagen, CFP, is a contributing Motley Fool retirement analyst covering Social Security, Medicare, and retirement planning.

Before The Motley Fool, Kailey was a research analyst for Reviews.com focusing on credit and banking products. She is a Certified Financial Planner® and holds a bachelor’s degree in English from the University of Wisconsin-Madison.TMFKailey