A Daily Network publication
Explore the network
Retirement Capital Daily
Independent Intelligence on Retirement Assets
Tuesday, October 20, 2026The Morning Brief →Sign in
Plans & Sponsors

Average HSA balance hits record $5,532, and most is still cash

Only 18% of accountholders invest outside cash, so the triple tax advantage goes mostly untouched.

At a glance

20-second brief
  • Only 18% of accountholders invest outside cash, so the triple tax advantage goes mostly untouched.

  • The average health savings account balance reached $5,532 in 2024, a record, according to new Employee Benefit Research Institute data.

  • More than 40% of accounts in the database were opened in 2022 or later, so a large share of owners have not had time to accumulate.

The average health savings account balance reached $5,532 in 2024, a record, according to new Employee Benefit Research Institute data. A year earlier it was $4,747. Most of that money never left cash. Only 18% of accountholders invested in anything beyond cash. 56% took a distribution during the year. The institute's database, covering 2011 through 2024, held 15.2 million accounts by Dec. 31. Assets totaled $53.7 billion.

More than 40% of accounts in the database were opened in 2022 or later, so a large share of owners have not had time to accumulate. The average balance comes in below the $8,050 out-of-pocket maximum for individual HSA-eligible coverage. It is roughly a third of the $16,100 family maximum. The 44% of accountholders who made no withdrawal leave contributions and investment gains to compound. The record average is real, and the account base is young.

Average HSA balance vs. out-of-pocket maximums
Family out-of-pocket max$16.1K
Individual out-of-pocket max$8.1K
Average HSA balance$5.5K
EBRI HSA DATABASE · 2024

The 82% who never leave cash

Paul Fronstin, who directs health benefits research at EBRI, puts it plainly: people use HSAs differently the longer they own them. Longtime accountholders accumulate larger balances, contribute more, and are more likely to invest. That tenure effect is the quiet argument for treating HSAs as a retirement account with a health-care deductible attached. The balances that matter decades from now are the ones that survived the early spending years.

The triple tax advantage is only fully realized when contributions approach the statutory maximum, withdrawals are limited to actual medical costs, and the balance is invested instead of held in cash. EBRI says most accountholders instead use the account to pay current expenses, leaving the tax benefit mostly untouched. Plan sponsors should watch the 18% who invest, not the record balance. As the 2022-and-later cohort ages, the share that migrates out of cash will show whether the cash-heavy pattern was circumstance or habit. The report doesn't say what the invested 18% own, only that they left cash. That is the next question for sponsors building HSA menus.

Continue your research

Save this analysis and keep the funds you follow together in My Desk.

Sign in to save articles or follow funds.
Sources & further reading
401(k) Specialist
More from Retirement Capital Daily
Plans & Sponsors

Morgan Stanley survey finds 93% of employers rank 401(k)s among employees' top five benefits

A third of plan sponsors now believe the DC plan is employees' single most valued on-the-job benefit, double the share in the 2024 survey.
Plans & Sponsors

Betterment adds mega-backdoor Roth to solo 401(k) plans

Advisers get automated tools to track contributions against annual limits; employer-sponsored plan support is planned.
Investments

Ascensus launches referral platform routing 401(k) savers to plan advisers

The recordkeeper, which administers more than $1.3 trillion for more than 16 million savers, expects 18 to 20 partner firms live on the platform within a year.
Elsewhere in the networkAll titles →
Every weekday · 6:30 a.m. ET

The Morning Brief

The latest from Retirement Capital Daily, in your inbox every weekday. Free.