What to do with your Health Savings Account funds?

Consider investing your Health savings account (HSA) instead of having it sit in cash! Well less than 20% of the funds sitting in HSAs are invested in mutual funds now. If your investment horizon for taking money out of your HSA is not until many years from now, consider investing it in quality mutual funds.

What if you don’t have or don’t like the mutual fund options available through your current HSA? Consider rolling over part or all of your current Health Savings Account balance to an HSA provider highly rated for investing. Which HSA provider should you choose? See the Morningstar report at http://corporate1.morningstar.com/ResearchLibrary/article/813893/2017-health-savings-account-landscape/

and click on “Download Paper”. It ranks the 10 largest HSA Plan Providers. See the summary in Exhibit 1 on page 3 of the paper. It summarizes the rankings by whether you use your HSA for qualified medical expense spending currently or for investing and future reimbursement of such expenses. In this paper, Morningstar rated the following Investment Plans in the Top 3: HSAs provided by HealthEquity, Optum Bank, and The HSA Authority.