A How to article
How to Invest your Health Savings Account balance
So you have enrolled in our CDHP or Basic Choice plan and have begun to accumulate assets in your Health Savings Account. What’s next? This article will help you to understand how to use those funds if you incur medical expenses in the short term. But if you are lucky enough to not have to dip into your funds – they can really add up over time. So you may want to consider investing those funds while they are waiting to be used. As a tax advantaged account – earnings on those funds will not be taxable to you unless you withdraw them and use them for something other than a qualified healthcare expense. The below is an excerpt from Fidelity’s website on Health Savings Accounts and investing.
What might you consider when investing your HSA?
Health care costs in retirement
As of 2019, the average couple will spend $285,0001 on retirement medical costs. Investing your HSA can help.
Unexpected medical expenses
Sell your HSA investments anytime, and get the money within a few business days to pay medical expenses.
Fidelity HSA® Funds to Consider
They’re professionally selected for HSA investing, all with waived investment minimums and no transaction fees. See the list of funds (PDF).
Single-fund options
Help take the guesswork out of investing based on your retirement age and risk tolerance with target date funds and target allocation funds.
Do it yourself
If you’re interested in handling your investments yourself, we offer investing choices you can use to design and manage your own portfolio.
Interested in taking advantage of this feature? Log on to www.netbenefits.com now and click on your Health Savings Account tile to get started.