financial planner Stephen Zelcer

Q&A: Should I front-load my HSA investment?

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Q&A - Should I front-load my HSA investment?


Hey Stephen!  

We opened an HSA this year!  I’m excited to fund it and have the money invested.   

We have the cash and we can front-load the entire HSA contribution now at the beginning of the year.  

Is it better to front-load all the money now, and thus have the HSA investments working with more money sooner, or is it better to have it taken out of our paychecks at regular intervals, potentially foregoing market performance? 


Your thinking is correct – you are able to front-load the money, this way its invested right away. 

Whether it’s better to invest all at once or piecemeal is anyone’s guess.  The market may go up, the market may go down. There’s no way to know.   

If you front-load the money, the tax benefit of the HSA will need to be claimed when you file taxes at the end of the year.  
If you do it piecemeal via payroll, you can use an “HSA allotment,” spread your HSA contributions over the year, and receive the tax benefits every pay period. 

By spreading it over the year, you will invest piecemeal, which, again, may be good, may not be good, but at least you capture the benefit of “dollar cost averaging.”    
I hope this helps!


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