2017 has come to a close, and at first look, it was a record-breaking year for HSA growth. While there were no new policy or tax changes to the HSA this year, besides the slight increase in contribution limits for 2018, the value of the HSA, coupled with the growth of HSA-eligible plans like a high deductible health plan (HDHP), is driving HSA adoption to new levels.
You might have an HSA, you might not, but the likelihood you will open and contribute to an HSA in 2018 continues to increase. Here is the 2017 HSA year in review.
Every year more and more Americans create dedicated savings for their health and 2017 was no exception. Did you know that over 21 million Americans have an HSA! In fact, the HSA is growing at a faster rate than the 401(k) industry.
2017 will finish with an estimated $44.7 billion in HSA assets (deposits and investments). This was a 23% increased from the previous year. Quite an increase! More HSA assets mean more money dedicated to health savings and long-term health financial opportunities.
This was truly a year to Invest in your health®. The average HSA account investment holder has over $15k in assets. Wow! This totals over $7.3 billion of estimated investment assets in 2017, which was a 44% increase from the previous year. While HSAs provide a clear path to pay for current year out-of-pocket medical expenses, this growth shows the value of longer-term savings opportunities.
The inherent value of an HSA is to provide tax-free dollars to pay for qualified out-of-pocket medical expenses for today or in future years. The added value of an HSA is that it creates a tax-free investment account, just like a 401k or IRA, that can be used to plan and save for retirement. As a result, you can invest in your health and save for your health financial future. We only expect HSA growth to increase. We are excited for 2018.
Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.