EBRI researchers combed its database of 5.5 million accounts worth $11.4 billion as of Dec. 31, 2016, to examine HSA trends. Study authors analyzed account balances, individual and employer contributions, investments and account-owner information between 2011 and 2016.
Here are four findings.
1. While HSAs offer a tax incentive for contributors, most account holders are using HSAs to pay for deductibles, coinsurance and copayments instead of contributing the maximum tax-free amount and letting some funds roll over year-over-year.
2. Average total contributions to HSAs grew from $2,348 to $2,922 from 2011 to 2016. This includes individual and employer contributions.
3. Sixty-three percent of HSA holders withdrew funds, with an average $1,771 deducted in 2016. This implies an average rollover of $1,151, the report states.
4. Individuals who opened their account in 2005 contributed an average $3,658 to their HSA annually, compared to $1,290 for those who opened HSAs in 2016. This shows longer experience with contributing to HSAs can improve account holders’ financial security, researchers said.
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