Health Savings Accounts (HSA's)

How do you work with HSA's in Advizr?

  • Individuals with high deductible insurance plans can save into a special tax-deferred (often tax-free) account called a Health Savings Account, or HSA, which can be used to pay for health care-related "qualified" expenses. When used for these expenses, or in other limited circumstances, distributions from the account are tax-free, including any earnings on investments in the account. HSAs can be held in cash-type savings accounts or can be invested when held with certain types of account providers. Earnings on HSAs are not taxable each year, unlike regular brokerage accounts. Distributions from HSAs may be taxable and penalized if used for non-qualified expenses.
  • In the Advizr platform, these accounts can be linked electronically if the custodial institution is available, or else added manually via the Accounts page.
  • Once added as an account, an HSA will automatically be earmarked to a Health Care goal, as indicated by the icon in the Goals column of the Accounts page.
  • HSA accounts in Advizr will distribute towards the Health Care goal first, then may be used towards other goals depending on their order in the Distribution hierarchy found in the Distribution tab on the Retirement goal What Ifs.