HSA Investment Options – Lane Health
HSA Investment options are available with your Lane Health HSA.
Invest your HSA funds to plan for your health care costs and retirement at the same time. Through a partnered bank custodian, Lane Health offers a portfolio of 31 different mutual funds options for you to invest your HSA funds towards as a tool for retirement, like a 401k. With an HSA Investment Account, your money gets deposited tax-free, grows tax-free, and comes out tax-free on qualified medical expenses.
Owning a Health Savings Account can add to your retirement portfolio that will also be there for you when you need it to pay for qualified medical expenses.
How Do HSA Investments Work?
HSAs have the most tax-advantaged properties in the current tax code!
- Once an HSA Investment Account is open, you’re free to start investing and watching it grow! You’re able to view the investing funds available and choose the best one that suites your financial and retirement goals.
- After selecting your funds, you can monitor your investment account and add or take out money as needed. At any time you need funds into your HSA Cash account, you can simply transfer them from your Investment account to pay for any health care expenses.
- Important note: After age 65, you can use your HSA funds on anything, even nonqualified medical expenses. At this time, you will be subject to pay the income tax on withdrawals except for any qualified medical expenses.
It’s easy to start investing your HSA
Once you have $1,000 in your Lane Health HSA you can start investing!
You can invest and hold cash in your account with confidence. When you open your investment account, you’ll see two savings accounts in your HSA, a cash account and an investments account. Your HSA investment account is self-directed, so everything you need to consider, including research materials and common questions, are provided. There is no minimum contribution amount when investing! This account has a triple-tax advantage, meaning any contribution, investment growth and withdrawal of funds for qualified medical expenses are all tax-free!
Remember: HSAs are not a use it or lose it account, so any money that is contributed to your account will stay with you as you save for retirement.
How to make the most of your HSA Investment
You can manage your HSA investments easily on your Lane Health member portal!
There are no other health savings accounts that offer investment options with mutual funds to plan for retirement and pay for medical expenses. Creating a plan on how you want to use your HSA Investment Account for health care expenses or retirement is a good idea! Its common to consider speaking with a financial advisor to learn more on legal or tax advice and how you can maximize your long term tax savings while investing. With an advisor you can learn more about the tax benefits and long term growth of your investments. Our funds are monitored and updated quarterly by a Registered Investment Advisor. Plan to check how your investing funds are doing on a quarterly basis to see any changes, growth or new investments available to use your Health Savings Account to its maximum ability.
You’re able to make changes to your investment account or cash account whenever you would like, but be aware some funds may charge a short-term redemption fee.
You can find more information on our portal on how to make the most of your HSA Investments.
How can investing impact your HSA?
Savings accounts are a great way to pay for a medical expense or save on income tax, but a health savings account with investment options is an even greater long term way to save and plan for retirement!
Investing with HSAs is simple and efficient, but it’s important to consider the IRS contribution limits, an individual can contribute up to $3,650 and a family can contribute $7,300 for 2022 (those limits will increase to $3,850 and $7,750 in 2023). To avoid over contributing, you want to monitor how much you have put into your HSA and keep track of what amount you have invested and what amount you have spent on qualified medical expenses.
Unlike other investing accounts, you cannot continue to add as much as you would like to your HSA Investment Account. If you have money in your investment account and need money in your cash account to pay for health care expenses, you can transfer the funds to your HSA Cash Account.
Note: Consider seeking legal or tax advice from a professional or certified investment bank if you are unsure on any regulations