04.01.24
Most HSA Owners Taking Distributions but Few Are Investing
by: Susan Rupe
Average health savings account (HSA) contributions are well below the maximum allowed, even though most HSA owners are taking distributions from their accounts and few are investing in them, according to a new report by the Employee Benefit Research Institute (EBRI). Jake Spiegel, research associate at EBRI, said there were several factors behind the low incidence of HSA owners investing their funds. “First and foremost, a lot of HSA providers require that you build up a certain balance before you're even allowed the option of investing,” he said. “Another reason is that people who have newer HSAs haven't built up sufficiently large balances, and there may be some sort of comfort factor there, where they feel like they need to save for their deductible, or they need to save for their out-of-pocket maximum before they feel comfortable allocating some money towards investing. We also found that the longer somebody has had their account, the more likely they are to invest.”
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