Self-Directed Health Savings Account (HSA)
Your tax-advantaged savings vehicle to help cover medical expenses in retirement. Invest in what you want by self-directing your HSA.
A Self-Directed Health Savings Account (HSA) is a tax-advantaged account that allows individuals with high-deductible health plans (HDHPs) to save and invest money for qualified medical expenses.
Unlike traditional HSAs, which limit your investment options to mutual funds or CDs, a self-directed HSA gives you the flexibility to invest in a wide range of alternative assets for long-term growth.
With Horizon Trust as your custodian, you can use your self-directed HSA to invest in real estate, private lending, cryptocurrency, private equity, or precious metals, all while maintaining the tax benefits of an HSA. Funds grow tax-free and can be withdrawn at any time for qualified medical expenses without penalty.
Because HSAs combine the benefits of tax-free contributions, tax-free growth, and tax-free withdrawals (when used for eligible expenses), they are often called a “Triple-Tax Advantage” account, making them one of the most powerful and flexible savings vehicles available.
2025 HSA Contribution Limits and Eligibility
- Individual Coverage: $4,400
- Family Coverage: $8,750
- Catch-Up (Age 55+): $1,000
- Must be covered under a qualified HDHP
- Cannot be enrolled in Medicare
- Cannot be claimed as a dependent on another person’s tax return
Contributions can be made by you, your employer, or both, and funds roll over each year. There’s no “use it or lose it” rule.
Use Your HSA for Healthcare Today—and Retirement Tomorrow
A Self-Directed HSA gives you penalty-free access for qualified medical expenses while also offering long-term growth potential as a secondary retirement strategy.
Proven Success. Trusted Leadership. Real Impact.
At Horizon Trust, we make it simple to open and manage a Self-Directed IRA, so you can take control of your retirement on your terms. Founded by Greg Herlean, who has overseen more than $1.3 billion in real estate transactions, Horizon Trust was built by someone who understands what self-directed investors need: personalized service, fast transactions, and a custodian that stays out of your way.
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Self-Directed HSAs Make Up Where Standard HSAs and Retirement Plans Fall Short
Qualified retirement plans may provide amazing tax advantages that help you build wealth for retirement, but you often can’t touch these funds until 59 ½. However, if you have major expenses like medical bills or a surgery, an HSA will allow you to fully withdraw funds without penalty for qualifying expenses.
In terms of building wealth for your golden years, standard HSAs limit your investment options to securities, severely restricting your growth potential.
A self-directed HSA gives you full control and access to non-traditional assets that can outperform standard mutual funds. This makes it ideal for long-term investors who want to grow their healthcare funds and even use the account as a secondary retirement strategy.
Stake Your Retirement on Assets You Trust
Qualified retirement plans and self-directed HSAs can both be maxed out without limiting the other’s contribution limits to help you save even more for retirement.
The average 65-year-old can expect to pay over $165,000 in medical expenses through the rest of their lives, often making up the largest expense they’ll pay in retirement. HSAs can help cover costly medical expenses that your retirement plan cannot cover or that could eat into its compound interest.
HSAs can be used for non-medical expenses after the age of 65 without penalty, giving you more money to finance your lifestyle in your golden years.
By self-directing your HSA, you can also invest your money in inflation-resistant assets with high growth potential, like real estate or private equity, that can help you keep up with rising medical costs.
Key Benefits of a Self-Directed HSA
Triple Tax Advantage
Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free.
Investment Freedom
Invest in real estate, private loans, startups, digital assets, precious metals, and more.
Checkbook Control
Write checks or make transactions directly from your HSA account without custodian delays.
Who No Use-It-Or-Lose-It
Your funds roll over indefinitely, growing tax-free year after year.
Long-Term Flexibility
After age 65, you can withdraw funds for any purpose (non-medical withdrawals are taxed but penalty-free).
Lower Fees
Fewer restrictions and simpler administration compared to employer-sponsored health plans.
What You Can Invest In with a Self-Directed HSA
Unlike a standard HSA that limits you to bank products or mutual funds, a self-directed HSA allows investment in:
Real estate (rental properties, land, REITs)
Private loans or promissory notes
Precious metals (gold, silver, platinum)
Startups and private equity
Cryptocurrency and blockchain assets
Tax liens and deeds
Note: All investments must follow IRS rules to avoid prohibited transactions and maintain tax-advantaged status.
SIMPLE IRA vs. SEP IRA vs. Solo 401(k)
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| Feature | Self-Directed HSA | Traditional HSA |
|---|---|---|
|
Investment Options |
Real estate, cryptocurrency, private equity, precious metals, and other alternative assets |
Limited to mutual funds, ETFs, or bank products
|
|
Checkbook Control |
Available for direct asset purchases and faster transactions |
Not available; all investments managed by custodian or bank |
|
Account Setup |
Established through a custodian using an LLC or trust structure
|
Opened and managed through a bank, broker, or employer plan
|
|
Fees |
Low and based on account structure (custodian + LLC)
|
Flat or percentage-based, depending on provider |
|
Growth Potential |
High — depends on performance of alternative investments |
Moderate — tied to traditional market returns |
Open a Self-Directed HSA in 4 Simple Steps
Setting up your Self-Directed HSA with Horizon Trust is fast, compliant, and fully supported by our expert team.
At Horizon Trust, we believe in turning dreams into reality. Founded by Greg Herlean, who has masterfully managed over $1.3 billion in real estate transactions, our mission is to empower you to take control of your financial destiny using the tax-free advantages of a Self-Directed IRA. Retire wealthy.
Here’s how it works:
STEP 1
Establish Your HSA Plan
Complete Horizon Trust’s HSA application. Our specialists ensure your account meets IRS guidelines and qualifies for self-direction.
STEP 2
Fund Your Account
You can fund your self-directed HSA through:
- Contributions from yourself or your employer
- Rollover from an existing HSA or Archer MSA
- Transfers from other eligible health savings plans
STEP 4
Start Investing
Once your HSA is funded and structured, you can start investing in the alternative assets you know best. Our team remains available to ensure your account stays compliant.
STEP 3
Set Up Your HSA LLC or Trust Account
For checkbook control, Horizon Trust helps you create an LLC or trust-owned checking account linked to your HSA for direct investment access.
Disclaimer
Horizon Trust Company is an independent passive Custodian and is not associated or affiliated with and does not recommend, promote or advise any specific investment, investment opportunity, investment sponsor, investment company or investment promoter or any agents, employees, representatives or other of such firms or entities. Investments are not FDIC Insured, offer no bank guarantee and may lose value.
Learn About Self-Directed Health Savings Accounts
What Exactly Is an HSA?
A Health Savings Account (HSA) is a tax-advantaged savings and investment account available to individuals with high-deductible health plans. Funds can be used for medical expenses at any time without taxes or penalties, and unused funds roll over from year to year.
Who Qualifies for an HSA?
To open an HSA, you must:
- Be enrolled in a high-deductible health plan (HDHP)
- Have no other major health coverage
- Not be enrolled in Medicare
- Not be claimed as a dependent on someone else’s tax return
HSA Contribution Limits (2025)
- Individual: $4,300
- Family: $8,550
- Catch-Up (Age 55+): $1,000
HSA Withdrawals
Funds withdrawn for qualified medical expenses are always tax-free. After age 65, non-medical withdrawals are subject to regular income tax but no penalties, similar to a Traditional IRA.
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