Triply tax-favored health savings accounts enjoyed strong growth in 2012, including exceptional growth in investment accounts. Devenir Group, a Minneapolis-based investment firm, reported that total HSA accounts rose by 22% last year, to more than 8.2 million, while assets picked up by 27%, to $15.5 billion. Among HSA assets, those classified as investments grew by 55% in 2012, reaching an estimated $1.7 billion.
Consumers with certain types of high-deductible health insurance are eligible to open HSAs. For those with HSAs, contributions provide an upfront tax deduction. Any investment buildup inside an HSA avoids income tax while withdrawals can be tax-free if used for qualified health care expenses. While most HSA assets are in bank accounts, the money also can be invested in stocks, bonds, funds, and other types of investments.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access