Investing your health savings account (HSA) funds
How it works
One of the key benefits of an HSA is the ability to invest your funds. HSAs are one of the best long-term savings tools because your contributions, earnings, and withdrawals for qualified health expenses are all tax-free, now and in the future.
Once your HSA cash account balance is greater than $1,000, you can open an investment account. Any earnings you make on your HSA investments are tax-free. Opening the account, making your initial investment, and future trades can all be done online at any time.
If your needs change, or if you face a large, unexpected health expense, you can transfer funds from your investment account back to your cash account. If your balance falls below $1,000, some of your investments will automatically be sold to bring your cash account balance back up.
If you want to use your HSA investment account assets to pay for your health expenses, you must first redeem mutual funds and transfer the required balance to the HSA cash account.
Your investment options
WEX offers a wide range of mutual funds to suit different objectives and timelines, including asset allocation, fixed income, and equity mutual funds. This allows you to tailor your portfolio to match your risk tolerance and savings strategy.
Fees
There are no fees for buying or trading mutual funds online, or for setting up automatic investments over the phone. However, there is a quarterly management fee of 0.25 percent per year (25 Basis Points per annum) applied to your invested funds. Mutual funds have no upfront or exit fees, however some may charge a fee if you sell them early. Be sure to review the details of each fund before investing.