Health Savings Account
Integrating Solo 401(k) Plans and HSAs for Retirement Success
Discover how to effectively combine Solo 401(k) plans with HSAs to enhance your retirement savings strategy.
What is a Self-Directed Health Savings Account?
A Self-Directed HSA (Health Savings Account) is a type of HSA that allows account holders to invest their contributions in a wide range of alternative assets beyond traditional options like mutual funds or ETFs. This can include real estate, precious metals, private equity, and more.
Like a standard HSA, it offers triple tax advantages: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free. A Self-Directed HSA provides greater control and potential for growth but requires careful management to stay compliant with IRS rules and avoid prohibited transactions.
Why Choose IRA Financial As Your Self-Directed HSA Provider?
A Self-Directed HSA, paired with an HDHP, covers a wide range of medical expenses while growing your savings tax-free. By choosing IRA Financial as your SDHSA provider, you can invest beyond traditional options, and unused funds roll over yearly for long-term healthcare savings.
No Hidden Fees
No commissions or surprise charges.
Expert Support
Live chat available 8AM–6PM Central Time.
Flexible Investing
Ability to invest in stocks, real estate, cryptos, and more.
24,000+ Clients
Trusted by investors in all 50 states.
HSA Specialists
Will maximize Self-Directed HSA savings.
Full Control
Full investor control or custodial support.
Self-Directed HSA
- Best value self-directed solution
- Invest in almost anything you want
- Choose checkbook or custodial control of your investments
- No transaction or asset value fees
Checkbook Control
$999
setup fee
$120
annually
Custodian Control
$0
setup fee
$120
annually
How to Open an HSA
Opening a Self-Directed HSA is fast and straightforward. Our simple process ensures you can start investing in your healthcare savings without hassle. With just a few steps, you’ll have full control over your funds while staying IRS-compliant and maximizing your tax benefits.
Benefits of Self-Directed HSAs
Tax-Free Growth
Tax-free growth
Contributions grow tax-free, and withdrawals for qualified medical expenses remain untaxed, maximizing the long-term value of your savings.
Tax-Free Withdrawals
Tax-free withdrawals
Withdraw funds tax-free for qualified medical expenses, ensuring you get the most value from your HSA savings.
Diverse Investment Options
Diverse investment options
Move beyond traditional stocks and bonds to invest in alternative assets such as real estate, private equity, cryptocurrency, and precious metals, providing greater diversification.
Direct Investment Control
Direct investment control
Choose where and how to invest without relying on traditional brokerage firms, giving you full authority over your portfolio.
Control Over Investments
Control over investments
Make independent investment decisions without relying on limited brokerage options, giving you the ability to tailor your portfolio to your financial goals.
Self-Directed HSA vs. Other Options
Many Self-Directed HSA custodians charge asset-based fees that grow as your portfolio increases, cutting into your returns. With our flat fee structure, you pay a predictable, fixed cost—no hidden fees, no percentage-based charges, just full transparency.
| Self-Directed HSA | Traditional HSA | Flexible Spending Account (FSA) | |
|---|---|---|---|
| Tax-Free Contributions & Withdrawals | Yes | No | |
| Tax-Free Investment Growth | Yes | Yes | No |
| Alternative Investments | Yes | No | No |
| Control Over Investments | Yes | No | No |
| Funds Roll Over | Yes | Yes | No |
| Retirement Flexibility | Yes | Yes | No |
| Custodian Requirement | Yes | Yes | No |
Book a Consultation
Schedule a free consultation with a member of our team to explore how opening a self-directed retirement account can unlock your ability to invest tax-free in a variety of alternative assets.
See What Our Clients Have to Say
What Alternative Assets Can I Invest in With a Self-Directed HSA?
At IRA Financial, you can invest beyond traditional stocks and mutual funds. Our Self-Directed HSA lets you diversify into:
Real Estate
Residential, commercial, raw land, and rental properties.
Cryptocurrency
Bitcoin, Ethereum, and other digital assets.
Precious Metals
Gold, silver, and other IRS-approved metals.
Tax Liens & Deeds
Acquire property liens for potential returns.
Private Equity
Invest in startups, private companies, and venture capital.
Private Placements
Invest in a non-public company through the sale of securities.
Self-Directed HSA Retirement FAQs
What is a Self-Directed HSA, and why would I use one for retirement?
A Self-Directed HSA is a type of retirement account, managed by a custodian, that lets you invest your health savings in a wide range of assets instead of just cash or mutual funds. Since HSA funds roll over indefinitely and grow tax-free, they can serve as a powerful retirement health savings tool.
What are the biggest benefits of using an HSA as a retirement tool?
- Triple tax advantage: Contributions are tax-deductible, growth is tax-free, and qualified medical withdrawals are tax-free.
- No Required Minimum Distributions (RMDs) like IRAs/401(k)s, meaning you can let funds grow indefinitely.
- Penalty-free non-medical withdrawals after age 65, functioning similarly to a traditional IRA if needed.
What happens to my HSA when I retire?
- At age 65+, you can withdraw for non-medical expenses penalty-free (but regular income tax applies).
- Medical expenses are always tax-free, making HSAs a valuable tool for healthcare costs in retirement.
- Funds can be used for Medicare premiums, long-term care, and out-of-pocket medical costs tax-free.
Can I still contribute to an HSA after retirement?
- No, you cannot contribute to an HSA once enrolled in Medicare (typically at age 65).
- If you delay Medicare enrollment and stay on a high-deductible health plan (HDHP), you can continue contributing.
What happens to my HSA when I die?
- Spouse as beneficiary: They inherit the HSA and can use it as their own.
- Non-spouse beneficiary: The HSA is liquidated and taxed as income in the year of inheritance. To minimize tax impact, consider spending down your HSA on medical expenses in retirement.
What are the biggest mistakes to avoid with a Self-Directed HSA?
- Not keeping receipts: You can reimburse yourself later for past medical expenses, but only if you keep records.
- Investing in prohibited assets: The IRS does not allow collectibles, personal property or certain self-dealing transactions.
- Forgetting about the Medicare cutoff: If you enroll in Medicare but keep contributing to your HSA, you’ll face penalties.
Ready to plan for your future?
Take control of your retirement by investing in alternative assets like real estate, cryptocurrency, businesses, and more. Start creating wealth today by opening an account.
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