What percentage of HSA accounts are growing?
Asked by: Ibrahim Jerde IV | Last update: October 22, 2025Score: 4.1/5 (5 votes)
What is the growth rate of HSA accounts?
The pace of account growth has continued to moderate, growing about 5% year-over-year. Accounts are typically opened during fall open enrollment but remain unfunded until early the following year. Halfway through 2024, about 19% of all accounts were unfunded, up from 18% from a year ago.
What percentage of people invest their HSA?
Still, just 9% of HSA accounts had at least a portion of their HSA dollars invested, a low total that HSA experts say amounts to a missed opportunity for account holders.
How much does the average person have in HSA?
Still, despite workers spending more on health care in 2022 than in previous years, average balances in HSAs increased, rising from $4,318 in 2021 to $4,607.
What is the average HSA balance in 2024?
$4,868: Average HSA account balance at the end of March 2024, according to Bank of America's 1Q 2024 Participant Pulse study. That's up from $4,380 at the end of 2023. 2.9 million: Number of accounts that have at least a portion of their HSA dollars invested, representing about 8% of all accounts, according to Devenir.
The Real TRUTH About An HSA - Health Savings Account Insane Benefits
How much should I have in HSA when I retire?
The amount of money you should have in your HSA during retirement depends on your healthcare needs and circumstances. According to the Fidelity Retiree Health Care Cost Estimate, a single person who is age 65 in 2023 should aim to have about $157,000 saved (after tax) for healthcare expenses during retirement.
What is a good HSA balance?
If you're unsure of where to start, try working with a financial advisor. What Is the Average HSA Balance By Age? The average HSA balance for a family is about $7,500 and for individuals it is about $4,300. This average jumps up to $12,000 for families who invest in HSAs.
Is HSA better than 401k?
Comparing HSAs and 401(k)s
The triple-tax-free aspect of an HSA makes it better for tax management than a 401(k). However, since HSA withdrawals can only be used for healthcare costs, the 401(k) is a more flexible retirement savings tool. The fact that an HSA has no RMD gives it more flexibility than a 401(k).
What happens to your HSA when you turn 65?
Once you turn 65, you can use the money in your HSA for anything you want. If you don't use it for qualified medical expenses, it counts as income when you file your taxes.
What is the trend in the HSA market?
Supported by stock market tailwinds, HSA assets saw continued strong growth during the first half of 2024. Growth in the number of HSAs continued. At the midyear point of 2024, there were $137 billion in HSA assets held in almost 38 million accounts, a year-over-year increase of 18% for assets and 5% for accounts.
Do HSA accounts grow?
When you retire at age 65, your HSA may be worth more than $1.9 million! Even if you only contribute $3,000 a year for 20 years, don't withdraw any funds, and the money grows at 8%, you will still end up with about $143,000 – an excellent addition to anyone's nest egg.
What is 1 potential downside of investing in an HSA?
The main downside of an HSA is that you must have a high-deductible health insurance plan to get one.
What percent of companies offer HSA?
Employer Contributions: Three-quarters of employers make contributions to the HSA and most (57.2 percent) provide a set amount per health plan coverage level. Automatic Enrollment: More than 40 percent of organizations automatically enroll employees in the HSA if they enroll in the HSA-qualifying health option.
What percentage of Americans have HSA?
About one in five Americans report having a household HSA or FSA account. Dietary supplement users are more likely than non-users to report having an account.
How much of salary should go to HSA?
The short answer: As much as you're able to (within IRS contribution limits), if that's financially viable. If you're covered by an HSA-eligible health plan (or high-deductible health plan), the IRS allows you to put as much as $4,150 per year (in 2024) into your health savings account (HSA).
Should I spend HSA or let it grow?
How you use your HSA really depends on your health care needs and longer‑term goals. It's all about balance: Spend when you need to and save as much as you can to take advantage of the benefits of your HSA that can help you be ready for the future.
What is the 6 month rule for HSA contributions?
This is because when you enroll in Medicare Part A, you receive up to six months of retroactive coverage, not going back farther than your initial month of eligibility. If you do not stop HSA contributions at least six months before Medicare enrollment, you may incur a tax penalty.
What is the HSA account loophole?
The ultimate loophole available to almost everyone under the age of 65 in our tax code is the Health Savings Account (HSA). It is the only account you can contribute to and deduct the contribution and then withdraw the money tax free. Think about that, a tax deduction going in and no taxes going out.
What happens to HSA on death?
What happens to an HSA at death? Like an IRA account, when a person sets up an HSA, they name a beneficiary. If the beneficiary is a surviving spouse, the unused portion of the decedent's HSA passes directly to the spouse and becomes his or her HSA; there is no tax liability.
What is one downside of an HSA?
Weak earnings and investment limits: Interest rates on HSA accounts may be low and some trustees charge a monthly fee if your balance drops below a certain threshold. Minimum balance requirements may apply before you can invest; investment options may be limited, and investments are not insured.
Should you max out HSA every year?
If you're able to make the maximum contribution each year, then it's suggested that you do so. Some years you may need to use more of your HSA contributions than other years. Just remember, there's no yearly minimum you have to spend from your HSA and your entire HSA automatically rolls over each year.
Do HSA contributions reduce Social Security?
HSAs can reduce taxable income in retirement, which may affect Medicare premiums and the portion of Social Security benefits subject to federal income tax.
Can you use HSA for dental?
Your HSA also covers expenses for standard dental cleanings and dental check-ups. One thing to keep in mind is that some of these procedures may have a co-payment, so it's important that you check with your dental insurance provider to find out exactly what you'll have to pay out of pocket.
Are HSA withdrawals tax-free after 65?
At age 65, you can take penalty-free distributions from the HSA for any reason. However, in order to be both tax-free and penalty-free the distribution must be for a qualified medical expense. Withdrawals made for other purposes will be subject to ordinary income taxes.
What is the growth rate of HSA?
Key Findings
Growth in the number of HSAs slowed. At the end of 2023, there were $123 billion in HSA assets held in over 37 million accounts, a year-over-year increase of 19% for assets and 5% for accounts. HSA investment assets continue to rebound.