Triply tax-favored health savings accounts enjoyed strong growth in 2012, including exceptional growth in investment accounts. According to a new report from Devenir Group, a Minneapolis-based investment firm, total HSA accounts rose by 22% last year, to more than 8.2 million, while assets picked up by 27%, to $15.5 billion. Among HSA assets, those classified as investments grew by 55% in 2012, reaching an estimated $1.7 billion.
While most HSA assets are in bank accounts, the money also can be invested in stocks, bonds, funds, and other types of investments. Health savings account owners contributed an estimated $13.2 billion in 2012 and withdrew $10.2 billion. “With both record contributions and withdrawals in HSA accounts in 2012, we continue to see that not only are people using their HSA dollars for current medical expenses, but more importantly they are actually accumulating savings for future medical expenses,” Jon Robb, vice president of research at Devenir, said in a statement.
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