Four Health Savings Account Benefits You Might Not Know

Steve Lear |

By Kyle Berg, CFP®, BFA™

In meetings with clients, we review a number of different accounts and strategies to help work toward achieving financial goals. One of those accounts – the Health Savings Account (HSA) – offers many benefits you might not know about. In this blog post, I share four lesser-known tips to consider when contemplating an HSA.

1. Triple Tax Advantages

HSAs are tax-advantaged accounts with three tax savings: you can contribute money on a pre-tax basis, you can take money out tax-free (as long as it is for qualified health care expenses, such as prescriptions or medical bills), and you can invest your HSA savings with no taxes on the investment growth. But, before you go looking to open an HSA online, it is important to note that an HSA needs to be attached to a medical insurance plan that allows HSAs. These are typically high-deductible plans, where you will cover more medical expenses out of pocket, before your insurance kicks in.

2. Consider Contributing to the Limit

If you are thinking that the triple tax advantages of an HSA seem too good to be true, the U.S. government thinks so too. So, there are limits to how much can be contributed to an HSA on an annual basis. For 2022, the maximum amount is $3,650 for an individual, and $7,300 for a family. Additionally, if you are over age 55, you can do a catch-up contribution of an extra $1,000. Once you turn 65 and enroll in Medicare, you are no longer able to contribute to an HSA, but you can use the account to pay for your Medicare premiums and supplements.

3. Invest Within Your HSA

In most cases, you are able to invest the money that is in your HSA. This way, your medical-expense savings can grow over time, rather than sit in cash earning minimal interest rates.

4. Reimburse Yourself Anytime

One of the lesser-known benefits of HSAs is that there is no limitation to the timing of expense reimbursements. This allows you to pay current qualified medical expenses in cash and leave the money in your HSA invested and growing tax-free. Down the road, you can take the money out (again tax-free), as long as you provide your receipts to prove that you are reimbursing yourself for qualified expenses that incurred while your HSA was established and active. Please note: you cannot reimburse yourself for expenses that happened prior to your HSA being established. Again, under current laws, there is no time-restriction for reimbursing yourself.

We understand that HSAs can be confusing, and you may need help navigating what is available to you. Don’t hesitate to reach out to an Affiance Financial advisor to see if an HSA makes sense as part of your financial plan.


There can be no assurance that the content made reference to directly or indirectly in this blog post will be suitable for your individual situation, or prove successful. Due to various factors, including changing conditions and/or applicable laws, the content is only reflective of current opinions or positions and is subject to change at any time and without notice. Moreover, you should not assume that any information contained in this blog post serves as the receipt of, or as a substitute for, personalized investment advice from Affiance Financial. Please remember to contact Affiance Financial if there are any changes in your personal/financial situation or investment objectives.

The investment return and principal value of an HSA investment fund will fluctuate daily so that shares redeemed may be worth more or less than their original cost.