In 2024, Health Savings Account (HSA) assets in the US reached nearly $147 billion, across more than 39 million accounts, a 19% increase in assets and 5% in accounts compared to the previous year. 

Here's a more detailed breakdown:

• Asset Growth:

  • HSA assets grew to nearly $147 billion by the end of 2024, a 19% increase year-over-year. 
  • HSA investment assets increased by 38%, reaching $64 billion by the end of 2024. 
• Account Growth:

  • The number of HSA accounts increased to more than 39 million, a 5% increase year-over-year. 
• HSA Market Projections:

  • Devenir projects that the HSA market will exceed 43 million accounts by the end of 2026, holding nearly $175 billion in assets. 
• HSA Benefits:

  • HSAs are tax-advantaged accounts that can be used to save for qualified medical expenses. 
  • Funds contributed to an HSA are tax-deductible, and any earnings or interest on the assets are tax-free. 
  • Distributions from an HSA can be used to pay for qualified medical expenses, and are tax-free. 
  • HSAs can also be used for retirement planning, as funds can be used for qualified medical expenses in retirement. 
• HSA Investment:

  • You can invest HSA funds in a variety of mutual funds, stocks, bonds, ETFs, and more. 
  • Any earnings on investments in your HSA are federally tax-free. 
  • You can choose to invest a portion of your HSA funds and keep the rest in a cash account to cover current expenses. 
• HSA Providers:

  • HSA Bank is a division of Webster Bank, N.A.. 
  • Other providers include Fidelity and Bank of America.