A new research report from the Employee Benefit Research Institute found that most Americans:
- Contribute less than the maximum allowable amount to their HSA
- Maintain a modest balance
- Do not invest the money
- Do not take advantage of inherent tax benefits of their HSA
The report found that employer and employee contributions dropped in 2021, the most recent year studied, compared to 2020. The average combined HSA contribution was $927 less than the statutory maximum for individual coverage and $4,527 less than the maximum for family coverage, according to the report.
Additionally, only 12% of accountholders invested in HSA funds rather than save the money as cash. With Medicare costs rising, many Americans could find their retirement savings running short as they pay for health expenses. Maximizing HSA contributions now could offer some relief in later years when you’re on a fixed income.
GOBankingRates spoke to tax and financial experts on the best ways to maximize your HSA now and in the future.