Short answer: Many HSA providers allow you to invest your balance in options like mutual funds, index funds, or ETFs, with investment earnings growing tax-free when used for qualified medical expenses.
Many Health Savings Account providers allow you to invest your HSA balance once it reaches a minimum threshold, often around $1,000 or $2,000. Until that point, funds are typically held in a cash account.
Common HSA investment options include mutual funds, index funds, and exchange-traded funds (ETFs). Some providers also offer access to individual stocks or managed portfolios, though availability varies by custodian.
The specific investment options, fees, and minimum balance requirements depend on your HSA provider. Some platforms offer a limited fund lineup, while others provide a broader range of choices or robo-advisory services.
Investing HSA funds can be appealing because earnings grow tax-free, and withdrawals used for qualified medical expenses are also tax-free. This makes HSAs a powerful tool for long-term healthcare savings.
Some account holders choose to pay current medical expenses out of pocket and let their HSA investments grow, then reimburse themselves years later for those past expenses, provided they keep proper documentation.
Sources
- IRS, Publication 969 – Health Savings Accounts: https://www.irs.gov/forms-pubs/about-publication-969
- IRS, FAQs on Health Savings Accounts – Distributions and Investments: https://www.irs.gov/faqs/health-savings-accounts-hsas
Content history
Originally published: March 27, 2025
Last reviewed: January 26, 2026