Investing with your HSA
Turn tiny steps
into giant leaps
An HSA can help you invest
in your family’s future
Do you know that you can invest part of your health savings account (HSA) in investment
options like mutual funds? That’s right. Investing your HSA dollars has many potential tax
benets and can be an additional way to save for long-term health care needs and nancial
goals. Interest earnings and potential investment growth is also income tax-free, and
withdrawals for eligible items are never taxed. This makes HSAs an effective savings and
investment account.
Double your HSA balance
Let’s say you contribute $6,000 every year to your HSA. If you save it
and don’t touch it, in 20 years it’ll grow to $120,000. But if you invest that
$6,000, and it gives you an extra 7% in earnings, it could grow to $263,190
1
in 20 years. That’s the potential for more than twice as much as if you
didn’t invest.
See the trends
Do you know over 2 million American are investing their HSA funds? And the
average HSA balance for these Americans is $19,224 — 7.3 times larger than
account holders who do not invest their HSAs.
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With Optum Financial self-directed mutual funds:
Sign in to your HSA and set up your investment
account by choosing the self-directed mutual funds
option from the investment options page.
Choose the funds you want to invest in.
Tip: You can use the Asset Allocation Calculator in
your online account to help you decide which funds
are right for you.
Indicate the amount you want to transfer into your
investment account.
Want to make future investing easier? You can
choose to set up recurring transfers. You choose a
certain threshold amount, and any funds over your
threshold will automatically be transferred to your
investment account. Manage your investments easily
in your online account by viewing market trends,
tracking portfolio performance, and manually or
automatically rebalancing your portfolio.
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Investing with your HSA
Option
1
Option
2
Choose between two smart investment options
Once your HSA reaches a certain designated balance
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, you may choose to invest a portion of your HSA dollars.
Optum Financial makes investing easy and more accessible for you by offering two investment options:
Self-directed mutual funds: You can choose from a wide variety of over 30 mutual funds,
that average a four-star Morningstar rating and represent some of the lowest expense
ratios in the industry, including life-stage funds. The Asset Allocation Calculator can help
you decide which funds are right for you.
Betterment digitally managed investments: Betterment helps take the guesswork out
of investing your HSA. Based on your HSA investment goals, Betterment will recommend a
personalized portfolio of low-cost exchange traded funds (ETFs) and help keep your HSA
investment on track through auto-deposits and automated rebalancing. If you’re saving your
HSA for retirement, Betterment can also help you manage your investments alongside your
other retirement accounts to help you maximize your after-tax retirement income.
And remember, any investment earnings such as interest or dividends are income tax-free.
How you can maximize your savings
Let’s say you contribute $3,000 a year to your HSA until retirement. Assuming you use $1,500 a
year for medical expenses, earn 7% a year in interest and investments, and reinvest all earnings,
your savings can really add up. But, the earlier you start, the more potential you have. See how
starting in your early years can really pay off.
Starting age HSA value at age 65
*
25 $320,420
35 $151,613
45 $65,799
55 $22,176
Investing with your HSA
Sign in to your HSA and select
Betterment from the investment
options page. This will take you to the
Investment options experience.
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Choose the initial amount you want to
transfer to your Betterment account.
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You’ll be securely taken to Betterment
to answer a few questions. Betterment
will learn more about your goals and risk
level to create a recommended portfolio
that’s customized for you.
Tip: Betterment customizes your
HSA investments to suit your needs:
whether you have long-term savings and
retirement in mind, or prefer a portfolio
that can be easily accessed for current
qualied medical expenses.
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Take full advantage of Betterment’s
technology by returning to your HSA
and setting up auto-transfers. You
choose a certain threshold amount,
and any funds over your threshold
will be automatically invested and
managed by Betterment.
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With personalized, online advice through Betterment:
*Hypothetical example for illustrative purposes only. Amounts will vary depending on your unique circumstances.
Investing with your HSA
1. Based on an account holder making no withdrawals and incurring no account fees. Your situation may vary, please consult your tax advisor.
2. Devenir Research 2021 Year-End HSA Market Statistics & Trends.
3. Investment threshold amounts may vary. Check with your employer or sign in to your account for more information.
Self-directed mutual fund investment options are made available through the services of an independent investment advisor, or your plan sponsor. Discretionary
advisory services are provided by Betterment LLC, an SEC-registered investment adviser, with associated brokerage transactions provided by Betterment
Securities, Member FINRA/SIPC. For details and disclosures visit betterment.com.
Orders are accepted to effect transactions in securities only as an accommodation to HSA owners. Optum Financial and its subsidiaries are not broker-dealer
or registered investment advisors and do not provide investment advice or research concerning securities, make recommendations concerning securities, or
otherwise solicit securities transactions.
Health savings accounts (HSAs) are individual accounts offered through Optum Bank®, Member FDIC, or ConnectYourCare, LLC, an IRS-Designated Non-Bank
Custodian of HSAs, each a subsidiary of Optum Financial, Inc. Neither Optum Financial, Inc. nor ConnectYourCare, LLC is a bank or an FDIC insured institution.
HSAs are subject to eligibility requirements and restrictions on deposits and withdrawals to avoid IRS penalties. State taxes may apply. Fees may reduce earnings
on account. This communication is not intended as legal or tax advice. Federal and state laws and regulations are subject to change.
© 2022 Optum, Inc. All rights reserved. WF6996442 218376-032022 OHC
Ready to enroll?
Enrolling in an HSA is quick and easy because
it’s built into your employer’s benets
enrollment. Review your enrollment materials
so you don’t miss your chance to sign up.
Ready to begin investing? Scan the
QR code, or go to optumnancial.com,
to sign in and get started.
What if you have unexpected medical costs?
No problem. If you’re investing in Optum Financial mutual funds, you can
easily transfer your investment funds back into your HSA.
OR
If you’re investing with Betterment, they will make it easy by automatically
selling the right funds for you.
Investments are not FDIC insured, are not bank issued or guaranteed by Optum Financial or its subsidiaries, including Optum Bank, and are subject
to risk including uctuations in value and the possible loss of the principal amount invested.
Go to optumnancial.com to learn more.