HSAs Continue Their Retirement Plan Romp

Contribution limits are low, but likely not for long

HSAs health savings accounts, retirementThey're gonna be huge.

Health savings accounts are suddenly everywhere, at least as a topic of discussion. The triple-tax advantage and incredible flexibility HSAs offer have piqued advisor interest—big time. While low contribution limits continue to hamper adoption of the product, most expect Congress to act, opening the market to a new generation of retirement savers.

Looking to get ahead of the rush, HealthSavings Administrators, which claims to be among the top 1 percent of the nation’s HSA investment companies in accounts and assets, announced the launch of its “most flexible and robust HSA product” Thursday called InvestorSELECT HSA.

The InvestorSELECT HSA offers first-dollar investing in 400 available funds, “One of the largest HSA fund lists currently on the national market, according to the company.

The benefits it provides include:

  • First-dollar investment, with no minimum balance required
  • Nearly 400 funds to choose from including Vanguard, Dimensional, Franklin Templeton, MFS, Pimco, T. Rowe Price, TIAA
  • Account holders can invest in as many funds as they would like
  • No investment transaction fees

While invested, the money remains available for use, or it can grow tax-deferred for future use.

HealthSavings’ says its emphasis is on “helping individuals understand the value of HSAs as part of a comprehensive retirement planning strategy, and the InvestorSELECT HSA’s vast array of funds makes it simple for an account holder to customize investment options to meet their financial goals.”

“InvestorSELECT HSA gives accountholders more investment options than almost any other product currently on the national market,” Kirk Hoewisch, President of HealthSavings, said in a statement. “Coupled with our first-dollar investing with no minimum balance required and our lack of investment transaction fees, this product offers amazing flexibility to any account holder who wants to grow their HSA dollars for retirement.”

HSAs are much like individual retirement accounts, but the money saved is reserved specifically for eligible healthcare expenses. The money is deposited tax-free or tax deductible and remains tax-free when used to pay or reimburse for eligible medical expenses.

HealthSavings works with FPS Trust Company as its custodian and provides investment-focused service through its cloud-based platform, the Investment Provider Xchange (IPX).

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