Greetings, my fellow wealth seekers!
Today, I want to share with you a little-known secret that has the potential to transform your financial future. Brace yourself, because what I'm about to reveal will not only inspire you, but also ignite a sense of urgency within you to take immediate action.Let's talk about Health Savings Account (HSA) eligibility—a golden opportunity that could be slipping through your fingers, leaving you behind in the race towards financial prosperity. But fear not, for I am here to guide you towards the path of success.
Picture this: a magical account that offers triple tax advantages and the potential for long-term wealth accumulation. Sounds too good to be true, right? Well, my friends, I assure you, it is very much real. The HSA is the financial world's best-kept secret, and it's time for you to uncover its incredible potential. So, what is an HSA, you ask? It's a tax-advantaged savings account specifically designed to help you cover medical expenses both now and in the future. The eligibility criteria for an HSA are relatively simple. You must be enrolled in a high-deductible health plan (HDHP), and you cannot be claimed as a dependent on someone else's tax return. That's it. If you meet these requirements, you have the golden ticket to financial freedom.
Now, let me tell you why HSA eligibility is a game-changer. Firstly, contributions to an HSA are tax-deductible. That means every dollar you contribute to your HSA reduces your taxable income. Who doesn't love the idea of paying less in taxes?But wait, there's more! The money you contribute to your HSA grows tax-free. Yes, you heard that right—tax-free growth. Imagine your contributions multiplying over the years without having to share a penny with Uncle Sam. It's like planting a money tree that blossoms with every passing year.
And the cherry on top? Qualified withdrawals from your HSA are also tax-free. Let that sink in for a moment. Contributions are tax-deductible, growth is tax-free, and withdrawals are tax-free. It's a trifecta of tax advantages that can lead to financial abundance.Now, here's where the fear of missing out (FOMO) kicks in. If you're not already taking advantage of HSA eligibility, you're

Morningstar’s annual landscape study of health savings accounts, released Thursday, evaluates the offerings of 10 HSA providers both as investment accounts for future medical expenses and as spending accounts to pay for current medical costs. 
Morningstar noted that HSAs have grown at a furious pace in recent years. Total assets rose by a factor of 21 from 2006 through mid-2023, to some $116 billion.
It said the growth has been driven by the increasing use of high-deductible health insurance plans, the only place in which participants can use HSAs, coupled with the accounts’ strong tax benefits.
Overall, the study found HSA features have improved over the past year; several plans have cut fees and offer higher quality investment menus. But the industry still falls short on several issues such as transparency, ease of use and costs.
“Despite market volatility over the past year, investors in HSAs showed resiliency and continued to put money into their accounts,” Greg Carlson, lead author of the study and senior manager research analyst, said in a statement. “Assets have climbed since our study last year as HSA offerings continue to improve — a reflection of the industry maturing. Even so, there are several ways for HSA providers to progress.”
According to the study, the 10 providers’ investment menus continue to improve. Ninety-six percent of the mutual funds and ETFs they offer earn a Morningstar Medalist Rating of Bronze or better, up from 88% last year.  
Although HSAs offer more substantial tax benefits than 401(k)s, IRAs, and 529 plans, the study showed that most participants are not taking advantage. According to Morningstar surveys, a median 18% of participants are using their HSA as an investment account.
This year’s landscape study added Saturna, an asset manager that recently introduced its first retail HSA offering. In 2022, UMB, another provider, bought HSA Authority, which had regularly appeared in previous years’ reports.
Morningstar used the following criteria in evaluating the 10 providers’ offerings as investment accounts:

• Price: Total cost for the investor, including maintenance, investment and underlying fund fees, 40% weight
• Quality of investments: Forward-looking assessment of how funds in the investment menu will perform, 20% weight
• Investment threshold: Amount of money investor must keep in spending account prior to putting dollars toward investments, 20% weight
• Menu design: Asset classes available to investors through the investment menu, 20% weight

Analysts used this scoring framework for the overall assessment:

• High: ≥ 4.5
• Above average: 3.5 to < 4.5
• Average: 2.5 to < 3.5
• Below average: 1.5 to < 2.5
• Low: < 1.5

According to Morningstar, the best HSAs employ the following practices for investment accounts to cover future health care expenses:

• Offer investment strategies in all core asset classes while limiting overlap
• Provide strong investment strategies that earn Morningstar Medals
• Charge low fees for active and passive strategies
• Do not require investors to keep money in spending accounts before investing

See the gallery to find out how the 10 providers ranked as investment accounts.