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How to Transfer Your HSA Funds to Investments

Lively · July 10, 2018 · 3 min read

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HSAs (health savings accounts) create spending and savings options. This enables you to make the most of the triple-tax advantages that come with an HSA. It creates short-term savings for everyday health costs and dedicated long-term funds. Balancing your HSA fund allocation is a personal financial choice. We will show you a few things to keep in mind when you do this.

HSA Investment vs. HSA Savings Account

Your HSA account can be further designated and allocated into an HSA savings account or an HSA investment account.

HSA investments further enhance your HSA savings by utilizing tax-free contribution growth. This means any HSA investment growth isn’t taxed, as long as the money is used for qualified out-of-pocket medical expenses. Or, you wait until 65 years of age, then you can use the funds for anything (just pay ordinary income taxes at that point- like an IRA).

Transferring HSA Money to Investments

Transferring funds from your HSA account into your HSA investment account will vary from provider to provider. At Lively, it’s as easy as one click. Once you have transferred funds into your HSA investment account, you can invest your funds into stocks, bonds, mutual funds, or EFTs.

HSA Allocation Considerations

  1. You can’t spend money in your HSA investment account – this might be obvious, but is worth point out. The money in your HSA investment account is not available to use with your HSA debit card or receipt reimbursement. This is because your funds are actively invested in your portfolio. You would need to first transfer the money back from your investment account to your cash account. But you decide when you want to sell your invested positions – not Lively!

  2. HSA investments create risk – HSA investment growth is not guaranteed. This means you are accepting some risk with your HSA fund investments. If your HSA funds grow, through investments, you would have more tax-free money to use for medical expenses. You need to decide if that risk is manageable for you.

  3. Plan for the long-term – The clearest value of HSA investment is that if further designates long-term savings. You can’t access this money daily for HSA expenses. HSA investment earmarks HSA money you want for years to come.

Setting aside funds for long-term savings, with HSA investments creates a clear path to lowering your financial risk. You are investing in your health savings future. You will not be blind-sided by the growing health costs for next year or in 20 years. Planning for the unknown might seem difficult, but the strategies to get you there are as clear as day.

Lively

Lively

Lively is the modern HSA experience built for—and by—those seeking stability in the ever-shifting healthcare landscape. By harnessing modern innovation and deep industry expertise, Lively is committed to bridging today’s savings with tomorrow’s unknowns. Unlike traditional institutions hindered by bureaucracy, Lively’s commitment extends beyond initial set up to providing dedicated, ongoing support and education for every step. So each HSA can reach its maximum potential with minimal headache.

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Benefits

2023 and 2024 HSA Maximum Contribution Limits

Lively · May 16, 2023 · 3 min read

On May 16, 2023 the Internal Revenue Service announced the HSA contribution limits for 2024. For 2024 HSA-eligible account holders are allowed to contribute: $4,150 for individual coverage and $8,300 for family coverage. If you are 55 years or older, you’re still eligible to contribute an extra $1,000 catch-up contribution.

comparing hsa versus fsa

Benefits

What is the Difference Between a Flexible Spending Account and a Health Savings Account?

Lauren Hargrave · February 9, 2024 · 12 min read

A Health Savings Account (HSA) and Healthcare Flexible Spending Account (FSA) provide up to 30% savings on out-of-pocket healthcare expenses. That’s good news. Except you can’t contribute to an HSA and Healthcare FSA at the same time. So what if your employer offers both benefits? How do you choose which account type is best for you? Let’s explore the advantages of each to help you decide which wins in HSA vs FSA.

Benefits of HSA employer matching

Health Savings Accounts

Ways Health Savings Account Matching Benefits Employers

Lauren Hargrave · October 13, 2023 · 7 min read

Employers need employees to adopt and engage with their benefits and one way to encourage employees to adopt and contribute to (i.e. engage with) an HSA, is for employers to match employees’ contributions.

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.

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