- EBRI research finds the average HSA holder contributed about $505 (individual coverage) to $4,755 (family coverage) less than the statutory max in 2024, tax-free room left unused.
- Only 18% of HSA holders invested any part of their balance beyond cash in 2024, and in a 2025 EBRI survey 65% of HSA owners said they use the account for this year's or near-term costs.
- Both gaps are checkable in a few minutes: confirm your eligibility and contribution room, then decide how much of the balance above your near-term needs should be invested.
An HSA is often described as the single most tax-advantaged account available to most Americans: contributions are deductible, growth is tax-free, and qualified withdrawals are tax-free too. New research from the Employee Benefit Research Institute shows most people aren't getting the full value of any of the three. The result is that most people leave an HSA tax benefit unused by contributing below the maximum and failing to invest their balance.
In 2024 the average HSA holder contributed, counting employer money, about $505 less than the statutory maximum under individual coverage, and about $4,755 less under family coverage, according to EBRI's August 2026 analysis of its HSA database. On the investing side, the gap is even wider: only 18% of account holders invested any portion of their balance in anything other than cash. In EBRI's separate 2025 Consumer Engagement in Health Care Survey, 65% of HSA owners said they use the account to pay for costs this year or in the near term.
Why the gap exists
Most of this isn't a deliberate choice, it's the account being used like the tool it resembles most closely on the surface: a debit card for medical bills. An HSA gets funded through payroll, a card gets issued, and the natural behavior is to spend it down the way you would an FSA, which has a use-it-or-lose-it deadline and no investment option. An HSA has neither restriction: unused balances roll over indefinitely, and once you clear your administrator's cash minimum, often around $1,000 (and zero at some providers), the rest can be invested the same way a 401(k) or IRA balance can.
There's also confusion about who currently qualifies. Eligibility used to mean one thing, enrollment in a traditional high-deductible health plan, but the rules have expanded. Starting in 2026, bronze and catastrophic plans bought through an ACA marketplace count as HSA-eligible, and a direct primary care membership of up to $150 a month ($300 for more than one person) no longer disqualifies you. Someone who checked their eligibility years ago and concluded they didn't qualify may not know that's changed.
The two gaps, and how to close each
The contribution gap. Every dollar contributed up to the statutory max is deductible from taxable income, regardless of whether you itemize. If your budget allows for it, closing even part of the $505 to $4,755 average shortfall is close to a guaranteed return: it's an immediate reduction in this year's tax bill, on top of tax-free growth later. For 2026 the max is $4,400 for self-only coverage and $8,750 for family coverage (IRS Revenue Procedure 2025-19), and anyone 55 or older can add a $1,000 catch-up contribution on top.
The investing gap. Cash sitting in an HSA above your near-term medical needs is money that isn't compounding. We cover the mechanics of that specific gap, including how little most administrators actually pay on the cash portion, in our guide on why the cash in your HSA is probably earning nothing. The short version: invest the balance above your administrator's cash threshold, and the full triple tax advantage stays intact.
Check your own numbers
The fastest way to see where you actually stand, this year's contribution room, whether your specific plan still qualifies, and what the age 55+ catch-up adds, is to run your situation through our HSA eligibility checker. It walks through current 2026 limits and coverage rules, including the newer marketplace bronze and catastrophic plan and direct primary care rules, in about a minute.
For the bigger-picture case on why an underused HSA is really a retirement account in disguise, see the HSA as a stealth retirement account.
Methodology
Contribution and investing figures come from EBRI's HSA database report published August 13, 2026, covering 2024 data. The 65% usage figure comes from the 2025 EBRI/Greenwald Consumer Engagement in Health Care Survey. Eligibility and contribution-limit figures reflect current 2026 IRS rules. This is educational information, not personalized tax or financial advice.
Sources
Frequently Asked Questions
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