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HSA Investment Maximum

Lively · May 23, 2018 · 2 min read

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Investing HSA funds to save for tomorrow ensures you will have money for the high cost of healthcare in retirement. Did you know, after the age of 65, you can use your HSA funds for anything, not just qualified out-of-pocket medical expenses?

HSA guidelines allow users to invest their HSA funds and use any financial gains for qualified medical expenses today, tomorrow or anything in retirement. So what are the HSA IRS guidelines for investing?

Yearly HSA Investment Maximums

We have good news! In a complex and restrictive IRS regulatory healthcare space, there are no yearly HSA investment maximums.

Yearly HSA maximums are set by contributions, not growth. 2019 HSA contributions limits are $3,500 for individuals and $7.000 for families (This increases to $3,550 and $7,100 in 2020).

You can invest your HSA funds no tax implications (federal). You will not be taxed on those funds unless you use them for non-qualified health distributions, after the age of 65. Warning – if you use them for non-qualified health expenses before 65, you will have to pay taxes and a penalty.

Tax-Free Investments

HSAs do have one predefined investment guideline, any gain is tax-free! This means there are no short-term capital gains for any HSA growth, for investments or otherwise.

This allows HSA account holders to set aside dollars to save for the long-term. You can use an HSA just like a 401k or IRA. Is an HSA the new stealth IRA? From tax code perspective it might be but with options to save, spend, or invest your HSA, you can use it in the ways that work best for you.

HSA Investment Options

Investing your HSA dollars or spending them on qualified medical expenses, is a very complex and personal decision. There are clear benefits to both short-term HSA tax-free spending and long-term HSA savings. The good news is all of these tax benefits are regulated by HSA-eligibility and contribution limits. Once you adhere to these IRS HSA regulations, you can invest your HSA without tax restrictions.

Disclaimer: nothing in this article is intended to provide investment or tax advice. Investments carry risk. Please be sure to seek advice from a qualified investment and/or tax professional prior to making any investment decisions.

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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