Invest in your future
Your Optum Bank® health savings account provides more than medical cost savings. It’s a smart investment option that can help you build a financial plan for today and tomorrow.
Investing HSA dollars has many potential tax benefits and can be an additional way to save for long-term health care needs and financial goals. HSAs are triple tax advantaged, making them an effective savings and investment account.
- Withdrawals for qualified medical expenses are income tax-free
- All contributions to an HSA are income tax-free
- And, any interest earnings and investment growth from deposits are income tax-free
Once your HSA reaches the investment threshold of $1,000, you may choose to invest any amount above that in mutual funds. The minimum amount that can be invested is $100.
You can use your HSA with other retirement accounts to maximize your after-tax retirement income. Saving in an HSA for retirement gives you a tax-advantaged account dedicated to future medical expenses — allowing you the opportunity to avoid dipping into retirement accounts intended for cost-of-living expenses. Also, HSAs are a great way to pay for qualified medical expenses in retirement. Once you reach age 65 you may use your HSA funds for non-qualified medical expenses without penalty — just pay ordinary income tax.
Investment guidelines
- When funds are transferred to your investment account, the amount of the transfer cannot bring the balance of your HSA below your investment threshold.
- The minimum amount that can be transferred to your investment account is $100.
- You can’t make payments for qualified medical expenses directly from your investment account. If you wish to use funds from your investment account to make payments, the funds will first need to be moved back into your HSA.
Start investing your HSA dollars
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