HSA investments allow participants to invest in themselves

HSA investments help you save now AND later

When talking about saving money for the future, the first thing that tends to come to mind is retirement accounts like a 401(k) or IRA. In addition to a general retirement account, consider a Health Savings Account (HSA). Making HSA investments enables you to grow this tax advantaged account at a greater rate long-term, while giving you a reliable source of funds to turn to for both emergency and everyday medical expenses.

Stow it and grow it with a Health Savings Account

Some people choose to treat their HSA like they would a retirement account: they put money in, invest that money, and leave it untouched until they retire.

Invest you say? You heard right! HSA investments can be put toward a secure and competitive interest-bearing account.

If you have an HSA through us, you can choose to invest in a best in class mutual fund portfolio through UMB Investment Management. The fund is comprised of 33 mutual funds. Additionally, once you have a balance of $1,000 or greater, you may invest HSA balances in a selection of mutual funds through UMB HSA Saver®.*

Any contributions you make to your HSA are made before taxes are applied. They also grow tax-deferred. It’s a win-win!

Want one more “win”?

“Oh no, an unexpected health cost!”

These are never fun to get, especially during times where you don’t have the disposable income.

Maybe your daughter tripped while running in your back yard and broke her arm. Or, your spouse was just taken to the hospital for an emergency appendectomy. Alternatively, you could’ve just received your first COBRA bill and were shocked to see how high your premium was compared to what you normally pay. Then, on top of whatever occurred, you must pay for other routine medical expenses. These may include prescriptions, over-the-counter medications, appointments, and general supplies. Costs add up quickly!

Fortunately, you don’t have to wait until retirement age to use HSA funds; you can use them at any time for eligible healthcare expenses without being hit by any taxes or fees. In fact, according to research, most individuals are taking distributions to self-fund medical expenses, but are still increasing their balances year-over-year.

Compare that to most retirement accounts. Want to retire early using the funds in there? Here’s one fee. Oh, and here’s one more just for fun. And another. And another. Even if you’re using these funds for what the account is supposed to be for – retirement – you get fees!

It’s not like that for an HSA. As a tax-advantaged account that allows for funds to be invested, you’re essentially receiving a triple-tax benefit. If you’re eligible to contribute, it’s time to get started.

*HSA Custodial Services are provided by UMB Bank, n.a; Member FDIC. A separate HSA Custodial Agreement will govern the HSA Custodial Account. Balances in the HSA are FDIC insured through UMB Bank. Investments in securities are not FDIC insured, may lose value, and are not bank guaranteed.