Frequently asked questions (FAQ) about HSA investing

Money you contribute to your health savings account (HSA) is placed in a deposit account, also called a cash account. When you reach a certain balance in your cash account, you may put your money over that minimum balance into an investment account. 

This gives you the opportunity to potentially grow your HSA savings longer term — whether you are planning for a medical procedure in several years or saving for health costs in retirement. Investment returns are not guaranteed and involve more risk than cash deposits. 

You currently have diverse investment options in your HSA, including self-directed mutual funds and digitally managed investments from Betterment. You can choose to invest based on how experienced you are and how involved you want to be in selecting your investments.

I want help investing and don’t want to spend a lot of time managing my portfolio;  can I get help investing?

You may choose to have Betterment manage your investment funds.  Betterment is an independent online investment advisor and combines low-cost, tax-efficient investment strategies with technology and personalized advice to help you pursue your financial goals.

Once you answer a few brief questions about your investment goals and priorities, Betterment will build a personalized portfolio of exchange-traded funds (ETFs) with investment mixes and risk levels that are suitable for you.

I have some investment experience and prefer mutual funds; can I choose my own investments?

You may choose from among a number of pre-selected mutual funds from nationally recognized fund families. These have been selected to offer a broad and diverse range of investment objectives, with high Morningstar ratings and some of the lowest expense ratios in the industry.

Read the fund’s prospectus carefully before investing. It contains information about a fund’s investment approach and management fees. Links to a prospectus and Morningstar report are provided for each mutual fund on your mutual fund investment page, so the information is at your fingertips. You will also have access to helpful investing tools, such as our asset allocation calculator, to further support your investment selection process.

HSA investments through Optum Financial are simple to start and just as easy to manage. Once your HSA meets the required balance,* you can set up investments in a matter of minutes through your online account or using the mobile app.

If you don’t have enough money set aside in your cash account to pay for a qualified medical expense, you may sell some or all of your investments at any time. You should generally allow several business days for the money to become available in your cash account after the trade settles. 

If you need your money sooner, you may always pay for your qualified medical expenses out-of-pocket now and reimburse yourself later once your funds are posted to your cash account. 

You can continue to use the money in your HSA if your investment balance drops below the minimum; however, you won’t be able to transfer any new funds into your investments until your HSA balance exceeds the investment minimum balance again.

Your HSA is owned by you, and you may transfer funds to Optum Financial or to another institution. If you transfer your HSA funds to a new custodian, you may incur transfer fees, as disclosed in your terms and conditions document, and you will need to liquidate your investment holdings. 

No. Investment products are not FDIC insured, and are not bank issued or guaranteed. They are subject to risk, including fluctuations in value and the possible loss of the principal amount invested.

No, generally all investment growth is income tax-free.

A mutual fund is a type of financial vehicle that collects money from investors and buys securities like stocks, bonds, money market instruments and other assets. Funds are operated by professional money managers who strive to meet the investment objectives of their investors, as outlined in the prospectus.

You have a broad range of mutual funds to meet a variety of investment objectives. Sign in to your account online to find the full list of fund choices.

Mutual funds are selected to ensure diverse choices by investment category. All funds have high Morningstar ratings and some of the lowest expense ratios in the industry. 

As with any investment, past performance does not guarantee future results, returns will vary, and the value may be worth more or less than the original cost. Consult your financial advisor for help determining whether a particular HSA investment is right for you.

Betterment is an independent online investment advisor. Digitally managed investments from Betterment combine low-cost, tax-efficient investment strategies with technology and personalized advice to help you pursue your financial goals.

This automated money management capability is designed for investors who would like help choosing investments or don’t have the time to manage their portfolios.

Betterment asks a few questions to understand your HSA investment goals when you sign up. With that information, they create a portfolio with a personalized investment mix and risk level. 

The portfolio is comprised of a globally diversified mix of exchange-traded funds (ETFs) chosen to help earn better returns at various levels of risk.

Betterment asks a few questions to understand your HSA investment goals and time horizon when you sign up. With that information, they create a portfolio with a personalized investment mix and risk level. 

The portfolio is comprised of a globally diversified mix of exchange-traded funds (ETFs) chosen to help earn better returns at various levels of risk.