Your employer may allow you to invest your HSA funds once a minimum balance threshold has been met.

Investments

Your employer may allow you to invest your HSA funds once a minimum balance (check with your plan for further information on minimums) threshold has been met. Those investments may be in the form of mutual funds, stocks or other investment tools. Like with any investment there is risk involved and there are no guarantees that you won’t lose money.  

  • Growth from HSA investments are tax free
  • If you don’t participate in the investment option funds remain in the savings account

Investment elections can be managed through your administrators Application or online portal 

You can: 

  • Transfer funds
  • Change fund allocations
  • Update elections
  • Realign Funds
  • View balances and performance

To learn more about investing HSA funds check out the instructions on your administrator’s portal.

Funds can be transferred between your investment account and your cash account in order to meet your medical expense needs.

Spending

  • Should you need a disbursement to pay for medical expenses, you may have to initiate a transfer from your investment account back to the HSA.
  • You can make a $1,000 “catch-up” contribution each year after the age of 55.

Retirement

  • You can only contribute pre-tax dollars to your HSA accounts if you are enrolled in an HSA qualified plan.
  • Once you enroll in Medicare you can no longer contribute to your HSA, but you can withdraw money to pay for deductibles, premiums, and co-pays.
  • As the cost of medical care and insurance increases, contributing as much as you can afford to your HSA while you are eligible should be looked at as a retirement planning similarly to a 401k or IRA.