How to Make the Most of Your HSA in 2018
According to a 2018 study done by Fidelity, 54% of the individuals polled said they plan to use the year to save for long-term goals. At the top of the list? Saving more for retirement (58%) and saving for retiree healthcare costs (37%), two areas where the health savings account (HSA) can be the most beneficial.
There are two big ways you can make sure you’re taking full advantage of your HSA.
Max out your contributions.
The contribution limits for 2019 are $3,500 for those with Individual healthcare coverage and $7,000 for those with Family healthcare coverage. If you aren’t able to max out your contributions, put as much in as you can right now, and try to increase your contribution each year. Keep in mind that your HSA rolls over year to year and goes with you even if you leave your employer, so your money will be there down the road if you need it. In fact, we recommend you leave as much in your HSA as you can afford, watch it grow and use it to pay for your healthcare expenses in retirement.
Need your HSA dollars before then? No problem. Just save your healthcare receipts and reimburse yourself any time by withdrawing online or completing our Withdrawal Form.
Invest your HSA dollars.
Investing is the best kept secret of the HSA. Many people see the health savings account as a checking account to set aside money for medical expenses, and it can be. But it can also be a “Medical 401(k)”. That means you can invest your HSA dollars just as you do any other retirement account, in many of the same funds. (Check out our investment options here.)
We also know that life happens. If you find yourself needing access to your HSA funds for medical expenses, you can transfer your invested funds to your cash account and reimburse yourself any time. No transaction fees included.