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Health savings accounts pitched as tax-advantaged investment tool as 2027 open enrollment begins

7h

Summary

  • Open enrollment is underway, with employees choosing their healthcare benefits for 2027.
  • Health savings accounts offer a triple tax advantage: untaxed contributions, tax-free growth, and tax-free withdrawals for qualified expenses.
  • For 2027, contribution limits are $4,500 for individuals and $9,000 for families, with a $1,000 catch-up for people 55 and older.
  • Average total family health premiums are $28,303, up 5% from a year earlier, and nearly 40% of companies with 10 or more employees offer an HSA-qualified plan.
  • Financial advisors suggest investing health savings account money beyond a cash cushion, with allocations based on risk tolerance.

Reactions

  • Eileen Olson, a CFP and founder of Emerald Wealth, said she loves health savings accounts for their triple-tax advantage and views them as among the best retirement accounts.
  • Mark Stancato, a CFP at VIP Wealth Advisors, advised deploying the money into a growth portfolio to take advantage of the pretax contribution.
  • André Small, a CFP and founder of A Small Investment, recommended keeping cash equal to 120% of the plan's out-of-pocket maximum and investing the rest per risk tolerance.
  • Patrick Swift, a CFP at Amplius Wealth Advisors, aims for allocations of up to 60% U.S. large cap, 20% small and mid-cap, and 20% international stocks.
  • Rachel Elson, a CFP at Perigon Wealth Management, recommended keeping it simple with a three-ETF model covering the U.S. market, developed, and emerging markets.

Timeline newest first

  1. Open enrollment season began at workplaces, with employees set to choose their healthcare benefits for 2027.
  2. KFF reported average total family health premiums, including employer share, at $28,303, up 5% from a year earlier.
  3. KFF found almost 40% of companies with at least 10 employees that offer health benefits have an HSA-qualified plan.
  4. For 2027, health savings account contribution limits are $4,500 for individual coverage and $9,000 for family coverage, with a $1,000 catch-up for people 55 and older not enrolled in Medicare.
  5. The IRS defines a 2027 high-deductible health plan as having an annual deductible of at least $1,750 for self-only coverage and $3,500 for family plans.
  6. A Morningstar survey found seven health savings account providers offer brokerage window access, up from four in 2023, including HealthEquity, Fidelity, and Lively.

Sources newest first

  • Juice your growth and save on taxes in this workplace investment accountcnbc.com· 7h

    A CNBC explainer lays out the triple tax advantage of health savings accounts during open enrollment — untaxed contributions, tax-free growth, and tax-free withdrawals for qualified expenses — with 2027 limits of $4,500 for individuals and $9,000 for families. Advisors suggest investing beyond a cash cushion, with allocations based on risk tolerance.

Background newest first

  • IRS announces 2027 401(k) contribution limits, raises savings cap: What it means for your moneycnbc.com· 2d

    The IRS has raised the 2027 401(k) employee deferral limit to $25,500, up from $24,500, with catch-up contributions rising to $8,500 for savers 50 and older and $11,750 for ages 60 to 63, while the IRA limit stays at $7,500. Experts advise capturing your full employer match and updating your savings rate in December to max out by January.

  • US employers keep passing rising healthcare costs to workers. There are better optionstheguardian.com· 6d

    In an opinion column, Gene Marks argues employers who pass rising healthcare costs to workers are shortsighted, citing a Mercer study projecting an 8.2% cost increase in 2027 – the highest since 2003 – and noting many smaller companies offer no benefits at all. He recommends alternatives like ICHRAs, HSAs, and consultants to help employees choose plans.

  • Her Employer Picked Her HSA Provider. She Can Move the Money to Another One Without Tax and Keep the Payroll Contributions Coming247wallst.com· 7d

    A 247wallst.com article by David Beren explains that you can move HSA money from an employer-chosen provider to one you pick tax-free through unlimited direct trustee-to-trustee transfers, while payroll contributions keep coming. It contrasts the once-a-year rollover with its 60-day window and 20% penalty trap, and walks through how to switch.

  • Why are Americans paying more for health insurance? Experts give 3 reasonspbs.org· 11d

    Hannah Grabenstein's PBS News article reports that employer-based family health plans averaged $28,303 in 2026, up 5% from 2025, and experts like Zack Cooper, Meredith Rosenthal, and Matthew Rae attribute rising premiums mainly to provider prices, more use of care, and costly new drugs like GLP-1s, with hospital consolidation also playing a part. Analysts predict annual premiums will jump as much as 9.5% in 2027, with workers shouldering more of the costs.

  • Senators say bipartisan compromise on ACA tax credits has stalledcbsnews.com· 43w

    A long-sought bipartisan deal to extend the Affordable Care Act's enhanced premium tax credits for two years has stalled, according to Republican senators, with the Hyde amendment's abortion-funding language a sticking point as the enrollment deadline arrives for the more than 20 million Americans who rely on the subsidies. Sen. Bernie Moreno says the talks are "in a little bit of a pothole" and blames Democratic leaders, while Sen. Lisa Murkowski says Republicans are hung up on Hyde language and will need White House buy-in; Democratic leaders have not endorsed the Senate plan.