Video
Options to invest your HSA
This video shows you the differences between your two investment options and how to get started.
Video: Investing with an HSA | Optum Financial
Narrator:
Your health savings account, or HSA, can be a smart long-term investment vehicle that can play an important role in your overall wealth and retirement strategy. Investing a portion of your HSA dollars, if you choose to do so, may potentially grow your savings and can be an additional way to save for long- term health care needs and your financial goals.
In general, contributions to your HSA and potential investment earnings, such as interest or dividends, are income tax free. Once your HSA reaches a certain designated balance, also known as the investment threshold, you may choose to invest a portion of your HSA dollars. We make investing easy and accessible by offering you two investment opportunities.
Your first option is investing your HSA dollars in self-directed mutual funds. You can choose from a wide variety of over 30 mutual funds including life stage funds. They average a four-star Morningstar rating and represent some of the lowest expense ratios in the industry.
Your second option is investing with Betterment. Betterment helps take the guesswork out of investing your HSA. Based on your HSA investment goals Betterment will recommend a personalized portfolio of low-cost exchange traded funds or ETF's and keep your HSA investment on track through auto deposits and automated rebalancing.
Ready to get started? Simply decide how much you would like to transfer into an investment account. The first time you invest, your balance must meet the minimum requirement to invest, plus $100 that you can spread across the funds of your choice. After that, you can invest any amount, as long as you have enough to cover the price of a full share. Then sign into your account and select the investment option that is best for you. If you choose self-directed mutual funds, the asset allocation calculator can help you decide which funds are right for you.
If you choose Betterment, you will answer a few questions and Betterment will create a customized portfolio to suit your needs and invest your HSA dollars for you. If an unexpected medical expense comes up it's no problem. You can easily transfer your investment funds back into your HSA to pay for them. It's that easy. So, give your future a boost and start investing today.
Did you know that after you reach a certain balance in your health savings account (HSA), you can potentially grow your HSA through investing? It’s typically income tax-free, too. Learn more about your investment options to help meet your needs and financial goals.
Related resources
HSA investment options
Health savings accounts (HSAs)
HSA investment overview
Self-directed mutual fund investment options are made available through the services of an independent investment advisor, or your plan sponsor. Discretionary advisory services are provided by Betterment LLC, an SEC-registered investment adviser, with associated brokerage transactions provided by Betterment Securities, Member FINRA/SIPC. For details and disclosures visit betterment.com. The Schwab Health Savings Brokerage Account is offered to certain account holders through Charles Schwab & Co., Inc., Member FINRA/SIPC. For details and disclosures, visit schwab.com. Brokerage services are offered to certain accountholders through TD Ameritrade, Inc., Member FDIC/SIPC and a subsidiary of The Charles Schwab Corporation. For details and disclosures, visit tdameritrade.com.
Orders are accepted to effect transactions in securities only as an accommodation to HSA owners. Optum Financial and its subsidiaries are not broker-dealer or registered investment advisors and do not provide investment advice or research concerning securities, make recommendations concerning securities, or otherwise solicit securities transactions.
Health savings accounts (HSAs) are individual accounts offered through Optum Bank®, Member FDIC, or ConnectYourCare, LLC, an IRS-Designated Non-Bank Custodian of HSAs, each a subsidiary of Optum Financial, Inc. Neither Optum Financial, Inc. nor ConnectYourCare, LLC is a bank or an FDIC insured institution. HSAs are subject to eligibility requirements and restrictions on deposits and withdrawals to avoid IRS penalties. State taxes may apply. Fees may reduce earnings on account.
Flexible spending accounts (FSAs), dependent care assistance programs (DCAPs), health reimbursement arrangements (HRAs), Commuter and Parking Benefits, Tuition Assistance Plans, Adoption Assistance Plans, Surrogacy Assistance Plans, Wellness Benefits, and Lifestyle Accounts (collectively, “Employer-Sponsored Plans”) are administered on behalf of your plan sponsor by Optum Financial, Inc. or ConnectYourCare, LLC (collectively, "Optum Financial") and are subject to eligibility and restrictions. Employer-Sponsored Plans are not individually owned and amounts available under the Employer-Sponsored Plan are not FDIC insured. This communication is not intended as legal or tax advice. Federal and state laws and regulations are subject to change. Please contact a legal or tax professional for advice on eligibility, tax treatment, and restrictions. Please contact your plan administrator with questions about enrollment or plan restrictions.
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Investments are not FDIC insured, are not bank issued or guaranteed by Optum Financial or its subsidiaries, including Optum Bank, and are subject to risk including fluctuations in value and the possible loss of the principal amount invested.