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HSA Spending vs. Investing

Lively · April 4, 2018 · 2 min read


HSAs are in a unique category. They are very similar to the 401(k) or IRA. You can save your money tax-free and let it grow, tax-free.

But unlike a 401(k) or IRA, you can access that money before retirement without penalty. You can use your tax-free contributions for qualified out-of-pocket medical expenses today.

You are faced with a tough decision, save for tomorrow or spend today. Before we look at how these strategies might fit your lifestyle, let’s review the current HSA market conditions.

HSA Spending vs. Investing

In 2017, HSA accounts holders spent over $22.5 billion dollars on presumed qualified out-of-pocket medical expenses. In fact, only 18% of all HSA assets are in investments as of December 31, 2017.

As you can see the overwhelming majority of HSA users choose to spend their tax-free dollars each year. This isn’t a huge surprise as health insurance premiums and costs continue to rise.

HSA Spending (2017)

82% of all HSA funds were spent in 2017. Wow! These pre-tax funds helped Americans pay for out-of-pocket medical expenses. Fun fact, 86% of all HSA spending is with a debit card.

HSA Investments (2017)

In 2017, HSA investments assets grew by 53% and now total $8.3 billion. In addition, more HSA accounts were left unfunded in 2017 vs. 2016. The percentage of unfunded accounts dropped from 24% to 20%. This increases the opportunity for HSA spenders to become HSA investors in 2018. Little by little more American’s are investing more HSA dollars each year.

Should You Spend or Invest Your HSA?

This is entirely up to you! Use your HSA (and it’s full features of benefits) in the ways that work best for you. The benefits of an HSA create a unique opportunity to choose your own path in an otherwise stringent and restrictive healthcare space.

Data Source: 2017 Year-End Devenir HSA Research Report

If you need more help with health account decisions, check out our blog. We will make you a healthcare benefits expert in no time, without any extra work or effort on your end.



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.

piggy bank on pink background


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


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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