HSA’s crossed the $100 billion mark in January and Americans are heavily investing in these triple tax break accounts. There was also a spike in the total number of HSAs in 2021 as an annual increase of 8% opened accounts, and assets are also flowing in up almost 20% from the prior year. Investors use HSAs in combination with high deductible plans and were legally formed in 2003. The biggest reason for the spike in HSA growth is the tax advantages where there are no taxes on contributions, growth, and withdrawals if used on medical expenses. Investors can also pay out of pocket for expenses and reimburse themselves afterward, but almost 93% of HSAs aren’t invested in mutual funds or investments
Finsum: Investors should take advantage of the capabilities of mutual funds or ETFs in their HSA to maximize their ability.
