Have a Health Savings Account? Here’s how you can invest with it

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Almost one-third of covered workers were enrolled in health insurance plans with a savings option in 2021, up from 17% in 2011, according to a report from the Kaiser Family Foundation.

and grow your funds tax-free.

Any earnings on the account remain tax-free as long as the money is used for qualified medical expenses such as deductibles, copayments and other expenses. Of course, you can still use the account to pay for qualified medical expenses and enjoy the tax-free withdrawal. However, it could make sense to keep only the money you’re likely to need in the near term in a money market fund and invest other amounts in higher-return but higher-risk choices below. If you have money in the account that you won’t need to touch for years, then other investments are likely to offer much better long-term returns, but there are no guarantees.

 

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