According to IRS Notice 2004-50 Q&A 65, HSA funds may be invested in the same types of investments approved for IRAs, including:
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Bank accounts
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Annuities
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Certificates of deposit
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Stocks, mutual funds, or bonds
HSA funds may not be invested in:
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Life insurance contracts
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Collectibles (e.g., art, antiques, metals, gems, stamps, coins, alcoholic beverages, or other tangible property defined under IRS Section 408(m))
However, HSAs may invest in certain bullion or coins described in Section 408(m)(3). The HSA trust or custodial agreement may restrict investments to certain types of permissible investments (e.g., particular investment funds).
Source: IRS Notice 2004-50 Q&A Q-65
Updated: