Employer Contributions to HSAs Jump in 2018
by Zach – Investment Analyst, DEVENIR
Health savings accounts received record-breaking contributions in 2018 with accountholders and employers pouring $33.7 billion into HSAs, up 22% from 2017. Employer contributions grew to their highest level, totaling over $8 billion in 2018. The record contributions have also led to a new record carry-forward balance of $8 billion in 2018 showing that in aggregate, HSA accountholders may be recognizing the long-term savings potential of the account.
We have also seen an uptick in the portion of accounts receiving employer and employee contributions in tandem with a decline in the portion of accounts flagged as receiving contributions from an individual. This trend may continue as HSA eligible health plans continue to grow in popularity among employer groups and HSAs are increasingly sought after by employees as a valuable workplace benefit.
We remain interested in contribution trends in HSAs and we look forward to continuing to offer insights into the marketplace. Thanks for reading and as always, let us know your feedback!
Investments are not FDIC Insured and may lose value. The information above is intended to be used for educational purposes only and is not to be construed as investment or tax advice, or as tailored to any specific investor. Consult a financial advisor or tax professional for more information. Data used may be estimates and may not reflect actual observed data.