Your Optum Financial health savings account (HSA) is a smart investment option that can play an important role in planning for a healthy financial future. Think of it like a 401(k) for health care! By investing your HSA dollars, you can realize tax benefits and get ahead in your retirement savings strategy.*
HSA Investment Advantages
Easy to Get Started
HSA investing through Optum Financial is simple to start, and just as easy to manage. Once your HSA meets the required balance, you can set up investing in a matter of minutes!
Set It & Forget It
Set up automatic, recurring transfers from your HSA contributions into your pre-selected investment lineup—one less thing to remember!
Invest Anytime, Anywhere
With Optum Financial’s mobile app, you can set up and manage your investments on the go!
Built for the Novice and Expert Investor
Whether you are an experienced investor, or you are new to investing—we've got you covered!
Triple Tax Savings
The money you earn through investments, in addition to the funds you contribute to your HSA and what you spend on qualified medical expenses, is never taxed by the IRS!**
What Investment Options are Available?
You can invest your funds in one or more of our nationally recognized mutual fund options.
The best part? Your investments are never taxed by the IRS!
Optum Financial helps you maximize your HSA savings potential, with investment options that help you build for the future.***
Access a wide range of fund choices, all managed by the most respected names in the financial services industry
Gain access to powerful and flexible financial planning tools
Discover a secure financial foundation for your health and financial well-being
Illustrative example of investment options. Investment lineups may vary by client.
Put Your HSA to Work for You
Did you know that a healthy 65-year-old couple will need close to $390,000 to cover health care expenses during retirement?
The earlier you begin investing, the more it can grow. Even if you make qualified withdrawals for health care expenses, you can still build a nest egg for the future.
Let’s see this in action, meet Joe and Jill. Both are 25 years old.
Stretch Your Dollars for Retirement Relief
An HSA can be a powerful investment tool to supplement your retirement savings, especially with health care costs on the rise.
You can avoid dipping into retirement accounts intended for cost of living expenses, to pay for qualified medical expenses.
At age 55, you may qualify for an annual $1,000 "catch up" contribution to your HSA.
Once you reach age 65, you may use your HSA funds for non-qualiﬁed medical expenses without penalty—just pay ordinary income tax.
Communicating Health Savings Account Value
Employers, this eBook can help you articulate the advantages of investing so that your employees are making the most of their health savings accounts!
HSA Investment FAQs
The HSA Investment Account allows you to invest your health savings account funds. You may purchase shares in any one or more mutual funds from several nationally recognized fund families. Certain minimum investment amounts may apply, which may vary by fund. Certain fees, such as short-term redemption fees, may apply. You will also have access to helpful investing tools to help you in the investing process.***
No. Investment products are not FDIC insured, and are not bank issued or guaranteed. They are subject to risk, including fluctuations in value and the possible loss of the principal amount invested.
No. All interest earned on your HSA and investment account within your HSA is tax free. Any balances from investments sold are automatically moved into your HSA cash balance.
No. Your investment account balance is separate from your cash account balance. If you need to pay for a qualified expense that exceeds your HSA Deposit Account balance, you may choose to liquidate a portion, or all, of your HSA Investment Account to cover the requested distribution. You should allow at least three-five business days for the proceeds to become available for distribution from the HSA Deposit Account.
Optum Financial offers a best-in-class fund offering with low expense ratios. You will have access to a wide range of fund choices, designed to suit your individual needs and financial goals, managed by some of the most well-respected names in financial services such as Vanguard, Schwab, Fidelity, BlackRock, PIMCO, and more.*
Accounts generally have an Annual HSA Investment Service Fee that covers all trades. By enrolling in the investment account, you authorize these fees to be deducted annually from your HSA investment balance. Please see the terms and conditions of your investment account for a detailed schedule of fees.
Automatic Investments is a tool that allows you to quickly and easily set up automatic transfers of your HSA funds into your investment portfolio. You choose how much to keep as the cash portion of your HSA above your minimum required balance, how much to allocate for investments and how you want to allocate Automatic Investments across your portfolio. Each time a deposit is posted to your HSA and you have $50 over the amount you selected to keep in your HSA, the deposit it will sweep into your HSA Investment based upon your preset allocations. There are no additional transaction fees and Automatic Investments can be turned off at any time.
The HSA account is owned by you, and you have the right to transfer funds to another institution or close your account. You may incur transfer fees or account closure fees. If you transfer your HSA funds to a new custodian, or want to close your account, you will need to liquidate your holdings.
*Investment funds are not Federal Deposit Insurance Corp. (FDIC) insured, not bank issued or guaranteed, and are subject to risk, including fluctuations in value and the possible loss of the principal amount invested. Please consult your financial planner for more information.
**For more information, please contact your tax advisor or refer to IRS Publication 969 at http://www.irs.gov/pub/irs-pdf/p969.pdf. States may have different or additional tax rules regarding HSAs. Always refer to your state’s tax guidance regarding HSA filing and taxation.
***ConnectYourCare is not a broker-dealer or registered investment advisor, and does not provide investment advice or research concerning securities, make recommendations concerning securities, or otherwise solicit such transactions. The HSA investment program is an optional, “self-directed” product, i.e., the decision to invest a portion of your HSA cash balance into HSA Investment Account, if at all, and which HSA Investments to choose are solely within your discretion and at your direction. Before you make any investment, you should carefully review the mutual fund’s prospectus and consider its objectives, associated risks and any fees or expenses that may apply. Investing entails the risk of loss of principal.