A health savings account (HSA) is a fantastic way to save tax-free money for medical bills, dental care, prescription medications and other costs associated with healthcare. Many people contribute to HSA accounts at work or privately, but did you know that an HSA can also double as an investment tool?

The truth is that those who contribute to HSA accounts may be able to make these funds go further because of a triple tax advantage. Funds placed in an HSA are not taxed, growth is not taxed and spending is not taxed in most cases. Additionally, you don’t have to regularly take money out of an HSA like you do with traditional savings vehicles like 104(k) accounts. If you are looking to contribute to HSA accounts, you should visit this website.

How Should You Invest?

Choosing how to invest your HSA funds is going to come down to your goals. For some, choosing stocks and bonds is a good way to go for steady growth over a long period of time. For others, mutual funds may be a safer bet. If you’re unsure about the investing process, it would be a good idea to work with a financial professional for guidance. If you already have an HSA set up through a brokerage, you can usually invest funds through the brokers online interface.

Think About the Future

It’s also worth noting that once you begin receiving Medicare, you are no longer able to contribute to your HSA. This means that it would be wise to maximize your contributions before hitting retirement age so that you can take full advantage of all that an HSA has to offer. Medicare enrollment eligibility generally begins at age 65, but some people may be qualified for Medicare prior to age 65 due to disability.

Employer Accounts Can Be a Barrier

Unfortunately, it’s often harder to invest using HSA money if your account is managed through your employer. In these cases, funds are usually matched to a percentage by the employer, meaning the money is not completely yours to invest. This doesn’t mean that you can’t invest with an employer-sponsored HSA, but you may face more barriers in doing so.

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