October 4, 2013
Health savings account investing
Do you have mor than $1,000 accumulated in your state of Kansas employee Plan C health savings account, or HSA? Once that threshold is met, you may invest the excess in a variety of funds; individual mutual funds covering a wide range of asset classes, as well as target maturity and asset allocation funds to meet your HSA investing needs.
Log into your HSA and select Investment Details to view your available fund options. You can view fund fact sheets, prospectuses and fund performance information. Many experts recommend investing Health Savings Account savings more conservatively than in a 403(b) or IRA because medical expenses can come up unexpectedly and you may need the money quickly.
Not currently enrolled in Plan C? You may want to consider Plan C and a health savings account for the 2014 plan year. When used correctly, health savings accounts can provide a triple tax advantage, something even a 403(b) or IRA cannot do. The money put into an health savings account is not subject to federal or state income tax and if the money is invested, any growth is tax-free as well.
Any money used toward eligible medical expenses can be tax-free too. The money in your health savings account is always yours. All amounts in your health savings account belong to you, and unspent balances in your account remain in your account year after year until spent. Many people use them to pay for medical expenses during retirement — tax free. More information about Health Savings Accounts is available on the state of Kansas employee health savings account website.