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Published: Sep 30, 2021 4 min read
Customer buying medicine at a pharmacy register
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Much like Jennifer Lopez, health savings accounts are a triple threat: Participants can contribute tax-free dollars, take them out tax-free (in certain cases), and let them grow tax-free. And while the first two benefits of HSAs have long been widely known, people may be — finally — waking up to the last.

As of June 30, roughly 2 million accounts had at least some of their HSA funds invested (as opposed to just parked in a savings account), according to a recent report from health care investment company Devenir. What's more, those investment assets reached an estimated $30.4 billion — up 73% from 2020.

An estimated 31.1 million Americans have HSAs, which are offered to people with qualifying high-deductible health care plans to help cover medical, dental and vision expenses. It's common to view an HSA as a short-term savings account or a way to save for retirement, given that withdrawals can be used for non-medical expenses after age 65 (as long as you're willing to pay tax on them). But you can typically also use one to invest and earn returns in the stock market.