The best HSAs are designed to help you save, spend AND invest in your future. We’ve been working hard to tick that last one off the list! And it’s here! Powered by TD Ameritrade, you are now able to maximize your HSA by investing your savings. We’re thrilled to bring this top-notch investing experience to our members so they can fully invest in their health.
Why should you invest your HSA savings?
The ability to invest your savings is one of the HSA’s most powerful strengths. Why? The hard-earned money you put into your HSA is pre-tax, and any gains you make are tax-free. We’re talking free money, folks! And more and more people are realizing the true power investing in your HSA has. Projections show that by the end of 2021, there will be $88 billion in HSA assets held by 30 million accounts.
How to start investing
Ready to start investing? Start by opening a First Dollar Health Savings Account. Once your First Dollar account is up and running, just open a TD Ameritrade account through First Dollar and transfer your funds. With access to over 3,000 stocks, mutual funds and ETFs, the opportunities are endless. Whether you’re an investing newbie or an old pro, we make it easy for you to manage your money.
Now, let’s answer a few questions you might have about investing your HSA…
1. If I invest my HSA, can I withdraw that money for qualified medical expenses?
Of course! You can, and you should. We’ve made it easy so all that you have to do is begin a withdrawal request from your First Dollar dashboard to move funds from TD Ameritrade to your First Dollar account. Remember, you have to sell your investments in order for cash to be available, which takes about three days. Then you can transfer them to your First Dollar HSA.
2. How much does it cost to invest my HSA funds?
First Dollar does not charge a monthly fee to access investments through TD Ameritrade. Please note that other investment fees may apply; full details of TD Ameritrade fees can be found here.
3. What are the tax implications of investing my HSA funds?
Earnings from your HSA (from interest, investment gains, or investment dividends) are tax-free earnings, most of the time. However, in a few states, eligible HSA contributions and HSA earnings are taxed. Please be sure to consult your tax professional for details specific to your situation.
Have more investing-related questions? Feel free to reach out to firstname.lastname@example.org anytime!
And if you’re ready to join our community of people wanting to revolutionize their relationship with healthcare, join First Dollar today.