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How to Make the Most of an HSA in 2018

According to a recent study done by Fidelity, 54% of the individuals polled said they plan to use 2018 to save for long-term goals. At the top of the list? Saving more for retirement (58%) and saving for retiree healthcare costs (37%), two areas where the health savings account (HSA) can be the most beneficial.

There are two big ways your clients can make sure they’re taking full advantage of their HSA.

Max out their contributions.

The contribution limits for 2018 are $3,450 for those with Individual healthcare coverage and $6,850* for those with Family healthcare coverage. If an accountholder isn’t able to max out their contributions, they should put as much in as they can right now, and try to increase their contribution each year. The HSA rolls over year to year and goes with an individual even if they leave their employer, so their money will be there down the road if they need it. We recommend individuals leave as much in their HSA as they can afford, watch it grow and use it to pay for their healthcare expenses in retirement.

If they need their HSA dollars before then, it’s no problem. They should just save their healthcare receipts and reimburse themselves any time by withdrawing online or completing our Withdrawal Form.

Invest their HSA dollars.

Investing is the best kept secret of the HSA. Many people see the health savings account as a checking account to set aside money for medical expenses, and it can be. But it can also be a “Medical 401(k)”. That means individuals can invest their HSA dollars just as they would any other retirement account, in many of the same funds.

We also know that life happens. If they find themselves needing access to their HSA funds for medical expenses, they can transfer their invested funds to their cash account and reimburse themselves any time. No transaction fees included.

For additional HSA resources, visit

*This has been updated to reflect the Family coverage contribution limit change from $6,900 to $6,850 made by the IRS in March 2018.

Author: James Denison