Investing through an HSA can be a smart financial move for those looking to save for medical expenses in a tax-efficient way. Think of your HSA as a home for your medical money. Just like a brokerage account or an IRA, you'll need to put money into your HSA before you can start investing it.
Health savings account experts urged employers to select HSA providers carefully due to the fee structures and available investment options. Retirement and health experts encourage the use of health savings accounts, but also warn that not all HSA providers are the same when it comes to investment opportunities.
Health savings accounts provide triple-tax benefits on contributions, growth, and withdrawals for medical expenses. They offer a three-pronged tax benefit: tax-free contributions, investment growth, and withdrawals. HSAs are a favorite among advisors, but research shows that many people use them like checking accounts and do not invest their funds wisely.