Investing HSA Funds

Aside from the upfront benefit of a Health Savings Account (HSA)—saving for future medical expenses with pre-tax dollars—HSAs offer a powerful way to potentially boost your long-term savings.

It boils down to three words: Triple Tax Advantage

HSAs offer three major tax advantages that set them apart from other savings vehicles:

1. Contributions are pre-tax. This means you don't take a tax hit on money you contribute to your HSA.
2. Account interest and earnings grow tax-free. In other words, you don't pay taxes on the money your HSA contributions earn in the account.
3. Distributions for eligible expenses are not taxed. When you take money out of the account to pay for eligible medical costs, you don't pay tax on the withdrawals.

Collectively, this is known as the HSA triple tax advantage.

HSA investments are even better when considered for retirement savings

That's because at age 65, withdrawals can be made for ANY reason, not just for qualified expenses, without incurring penalties; they are only subject to normal income tax, just like 401(k) distributions.

Invest Your HSA Savings

Investing your HSA allows you to be better prepared for future healthcare and retirement expenses. Your invested HSA funds grow tax free and remain tax free when you use them to pay for eligible healthcare expenses. You can also use your HSA as a long-term retirement investment option. After the age of 65, your HSA funds can be used for any non-healthcare expenses (ordinary income taxes would apply).

Our HSA Advantage account offers self-directed mutual fund investments to help you grow your healthcare savings for future needs. You can easily manage your investments from the Chard Snyder Mobile App or your online account. Learn more about how to invest your HSA funds.

Health Savings Brokerage Accounts

A Health Savings Brokerage Account (HSBA) is a self-directed individual brokerage account designed to complement an HSA.

The HSBA provides Chard Snyder HSA plan participants access to thousands of investment choices. Knowledgeable investors who seek more flexibility, increased diversification, and a greater role in managing their HSA funds would benefit from a HSBA.

Employers can also benefit, as offering a HSBA with your benefits package can be an effective aid in attracting and retaining top talent. 

Want a more in-depth look at Chard Snyder HSBAs and how they work? Click here to download our HSBA overview PDF.

Contact us today to learn more about HSBAs!