This might sound obvious but the longer you have had an HSA, the higher your HSA balance is expected to be at year-end.
Are you aware that there is an investment option available that allows for tax-deductible contributions and also for tax-free distributions?
First introduced back in 2004, Health Savings Accounts offer individuals that unique winning combination. The favorable tax advantages of HSAs has caused them to become increasingly more popular in recent years.
Perhaps the only decisions more personal than health decisions are the financial ones – How much should I save? Where should I save? Where can I find help if I need it? These are big questions and deserve attention. Your choices create options after only a few years and become life-altering over a career.
A recent study by Alight Solutions has laid out the connections between healthcare, 401ks, and the HSA. We broke out these relationships even further to outline the savings impact on age, gender, income and healthcare dependents.
“Want to Save More? 401(k)s and HSAs are a Perfect Match”
More and more people are “rolling over” an HSA balance from one year to the next. In fact, at the end of 2016, more than 90% of all HSA accounts had funds accumulated that can be used in the coming years. Remember, unlike an FSA, an HSA has no “use it or lose it” clause, which means rollover is really just a calendar date with your HSA. Your account will be ready to use whenever you need it.
Investing your HSA can help increase your health savings for the long-term. Finding ways to balance long-term savings with qualified out-of-pocket medical expenses that are part of your normal life will help create a balanced approach for HSA growth, reimbursements and savings.