We’re all concentrating on articles, videos, and experts telling us the best ways to invest. Instead of choosing one method over another, it makes great investment sense to take advantage of multiple accounts and strive for the best returns possible. In particular, health savings accounts (HSAs) and 401(k)s complement each other in various ways, with the ultimate benefit going to the account owner. Below, we’ll highlight how HSAs and 401(k)s work together in a health-to-wealth approach to help participants round out their retirement strategy.

An HSA allows people to set aside money, before paying taxes on it, in an account that can be used for health care expenses. The account never expires, it always rolls over (whether individuals change jobs or health plans), and it always belongs to the account owner. Individuals can contribute when they’re self-employed and during times when they have no income. Retirement doesn’t affect it—the HSA is still there.

The focus is that HSAs help with health care costs for individuals and families. Since account holders aren’t paying taxes on those dollars before using them for health care, they save money.

Due to the health care savings people realize with HSAs, it’s sometimes overlooked that they are also a great investment tool. Any pre-tax dollars that aren’t used for health care can be saved and invested for future use. In an added benefit, these funds are also able to grow tax free. Interest, dividends, and capital gains earned are nontaxable. As a result, the HSA savings continue beyond retirement.

A 401(k) is a tax-advantaged account that allows people to contribute a portion of their salary, up to an annual limit. Employers often match contributions as a job perk. The money is a retirement investment, which is usually put into the owner’s choice of mutual funds. The earnings aren’t taxed until the owner withdraws the funds, typically after retirement.

The power of compounding means when account owners contribute, their earnings can be used to make additional investments, which then again can increase earnings.

With matching contributions from an employer, preferential tax treatment, investment options, and compounding, 401(k) account owners are able to better prepare themselves for their retirement years.

By combining their benefits, a 401(k) and HSA allow account owners to make the best financial decisions for their health and retirement.

For instance, the HSA and 401(k) are similar from a savings account view, as they both offer pre-tax savings. No federal or state taxes are deducted from the payroll funds in the accounts, (excluding California and New Jersey for HSAs), and HSA accounts have the additional benefit of avoiding FICA taxes.

More importantly, having an HSA is a way to safeguard a 401(k). A 401(k) owner will be penalized for withdrawing funds from the account before age 65. Once the money has been contributed into it, those funds are protected until retirement.

However, large medical bills are a reality for many families. By making use of both accounts, owners can use HSA funds for medical care, without penalty, and keep the 401(k) account untouched. This allows families to simultaneously plan for medical care and investments.

When account holders use their HSA to save, they can see even more tax advantages. For instance, say a family doesn’t have many health care costs, and they choose to pay for their expenses with their own personal funds. When they do this, the money invested in the HSA can grow alongside the money invested in the 401(k). If account owners max out their contributions each year, due to all the tax advantages, they set themselves up for a secure retirement.

Crunching the numbers backs up this dual savings strategy. People using both 401(k) plans and HSAs have the potential for higher aggregate savings rates than people who just use a 401(k).  Mercer puts it this way: If an employee receives both the employer match under the 401(k) and the tax advantage from using the HSA, under a 50% match scenario, the benefit value is doubled—50% from the employer and approximately the same amount in savings.

We’re lucky to have a variety of options for our health care and retirement, and it’s helpful that there’s no right or wrong way to take advantage them. By making the most of HSAs and 401(k) tax benefits, account owners are able to take care of their personal health and investment needs.