Yes, an HSA is better than either a Traditional or Roth IRA, when the funds inside the HSA are considered and treated like retirement savings. This requires that medical expenses are paid for out of cash flow. However, if funds from the HSA are required to cover a fiscal crisis in the future, funds can be withdrawn without penalty so long as there is proof of a medical expense that was already paid out of pocket in a prior year, so long as the HSA already existed.