Yes it is true! When we began looking into this over a year ago, we discovered how powerful of a utility the HSA can be. The rule is that your HSA dollars can be invested and earn interest completely tax free, so long as when you take your money out, it is used on qualified medical expenses. Assuming you use the money on qualified medical expenses, you can use that money tomorrow, next year, or 30 years from now. There is a lot more flexibility in that context. Worst case, you can invest and let your HSA dollars grow and when you retire (age 65 with the HSA), use the money for non-qualified expenses and just pay ordinary income taxes at that time - similar to the 401k.
We will be launching our investment capabilities at the end of Q2 so stay tuned for that.
With regards to what are we doing to make it easier:
1. We have designed our user experience to not need paperwork to get up and running. You (as the employer) and your employees can sign up in minutes - all online.
2. We have a Learning Center designed to help both employers and individuals about best practices, listed qualified medical expenses
3. Electronic receipt upload and categorization in case of an audit
4. For employers, we are automated with 9 different payroll companies taking the administrative burden off of the employer and onto us!
Those are just a few things, but we will be coming out with many more features that will help you as you grow!
For 2017, the individual limit is $3,400 and for families it is $6,750. You are right that HSA accountholders are limited to these amounts as of today.
We will be launching our investment capabilities at the end of Q2 so stay tuned for that.
With regards to what are we doing to make it easier: 1. We have designed our user experience to not need paperwork to get up and running. You (as the employer) and your employees can sign up in minutes - all online. 2. We have a Learning Center designed to help both employers and individuals about best practices, listed qualified medical expenses 3. Electronic receipt upload and categorization in case of an audit 4. For employers, we are automated with 9 different payroll companies taking the administrative burden off of the employer and onto us!
Those are just a few things, but we will be coming out with many more features that will help you as you grow!