The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: CutTheFat on April 19, 2017, 02:47:02 PM
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My husbands employer is moving to a HDHP with an HSA effective May 1. The employer choose the bank (People's United) that holds the HSA and I have no clue what the interest might be. Nothing is listed in the paper work or on the website. I do see fees listed on web, $2/month charge until the account reaches $1k, and another $2/month until you opt out of paper statements. Nothing about interest so I'm assuming it's mediocre as most bank accounts are. I googled Vanguard HSA and found this https://personal.vanguard.com/us/whatweoffer/overview/healthsavings
I've looked at both options and I'm leaning toward http://healthequity.com/ because they seem to have a self guided option that doesn't seem to have any fees, unless I'm missing something. The other company had fees.
I'm still a little unsure about how this is rolled. I think in order to get the tax advantage HSA we must go through the chosen bank through payroll deductions and then fill out a form to roll....I will be calling them to get more info. Any one have experience with this company?
Employer pays $2k into HSA and we will max it out.
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Yes, you will almost certainly need to keep the employer's chosen HSA open to receive the payroll contributions, then you are free to move the money wherever you wish.
However, be aware that you can only do one HSA rollover per 12 months (IRS rule). There is an alternate mechanism that is not so restricted, known as trustee-to-trustee transfer, but some banks charge a fee for this so be careful there too.
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We use Health Equity. It's been great. They offer tons of Vanguard options at the "Institutional Shares" level which means lowest expense ratios.
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I have Health Equity for a HSA because that's who my employer set it up with. For our plan (I don't know if this varies), you can invest any amount over $2000 - in other words, you must keep $2000 in cash. If your cash balance is a minimum of $2500, the monthly fee is waived.
There are many mutual funds to choose from, most of which have a lot of fees. There are Vanguard ones available for an additional fee - Health Equity adds a surcharge.
All my HSA investment funds are in the institutional S&P 500, with an ER of 0.02%. It was the most attractive (lowest fees) available in Health Equity. There's a fee of some percentage of invested monies too, but I don't remember how much.
I'm not thrilled with the HSA fees, but I max it out in order to get the tax advantages, so it's worthwhile.
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I have Health Equity for a HSA because that's who my employer set it up with. For our plan (I don't know if this varies), you can invest any amount over $2000 - in other words, you must keep $2000 in cash. If your cash balance is a minimum of $2500, the monthly fee is waived.
Interesting, we don't have to keep this much cash and we don't have monthly fee charges.
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Under my Health Equity HSA, I have these funds available with a surcharge (Health Equity calls these "investor choice" funds). Health Equity says "the monthly administration fee for Investor Choice funds is 0.033% of the average value invested" -- this is a fee that HE tacks on to the monthly administration fee, which is waived under my plan if you have $2500 minimum in cash.
Let's see if this is at all legible... the first column to the right of the word "passive" is the ER for each fund, followed by the 1/3/5 year returns.
In addition to this list, I also have available VIIIX (SP500 institutional) and VGSNX (REIT institutional), which aren't showing up in the list, because they're in my HSA portfolio. I don't have any $ in the REIT anymore; moved it all to SP500.
SMALL VALUE
VSIAX
Choice $
VANGUARD SMALL CAP VALUE INDEX ADMIRAL Passive 0.08% 22.96% 9.04% 14.17%
INTERMEDIATE-TERM BOND
VBMPX
Choice $
VANGUARD TOTAL BOND MARKET IDX INSTLPLS Passive 0.04% 0.45% 2.62% 2.30%
TARGET-DATE 2060+
VTTSX
Choice $
VANGUARD TARGET RETIREMENT 2060 INV Passive 0.16% 14.67% 6.19% 9.53%
LARGE GROWTH
VIGIX
Choice $
VANGUARD GROWTH INDEX INSTITUTIONAL Passive 0.07% 15.94% 10.66% 12.93%
TARGET-DATE 2020
VTWNX
Choice $
VANGUARD TARGET RETIREMENT 2020 INV Passive 0.14% 9.44% 5.17% 7.34%
ALLOCATION--30% TO 50% EQ
VWIAX
Choice $
VANGUARD WELLESLEY INCOME ADMIRAL Passive 0.15% 6.50% 5.68% 7.06%
TARGET-DATE 2040
VFORX
Choice $
VANGUARD TARGET RETIREMENT 2040 INV Passive 0.16% 14.32% 6.14% 9.43%
TARGET-DATE RETIREMENT
VTINX
Choice $
VANGUARD TARGET RETIREMENT INCOME INV Passive 0.13% 5.36% 3.80% 4.61%
MID-CAP BLEND
VEMPX
Choice $
VANGUARD EXTENDED MARKET INDEX INSTLPLUS Passive 0.05% 22.53% 7.18% 12.64%
FOREIGN LARGE BLEND
VTPSX
Choice $
VANGUARD TOTAL INTL STOCK IDX INSTLPLS Passive 0.07% 13.74% 1.13% 4.87%
INFLATION-PROTECTED BOND
VTAPX
Choice $
VANGUARD SHRT-TERM INFL-PROT SEC IDX ADM Passive 0.07% 1.58% 0.62%
DIVERSIFIED EMERGING MKTS
VEMIX
Choice $
VANGUARD EMERGING MKTS STOCK IDX INSTL Passive 0.11% 17.60% 1.94% 0.91%
SHORT-TERM BOND
VBIRX
Choice $
VANGUARD SHORT-TERM BOND INDEX ADM Passive 0.09% 0.38% 1.25% 1.18%
TARGET-DATE 2030
VTHRX
Choice $
VANGUARD TARGET RETIREMENT 2030 INV Passive 0.15% 11.90% 5.72% 8.50%
NATURAL RESOURCES
VMIAX
Choice $
VANGUARD MATERIALS INDEX ADMIRAL Passive 0.10% 23.31% 6.06% 9.88%
MID-CAP VALUE
VMVAX
Choice $
VANGUARD MID-CAP VALUE INDEX ADMIRAL Passive 0.08% 19.49% 9.39% 14.32%
SMALL BLEND
VSMAX
Choice $
VANGUARD SMALL CAP INDEX ADM Passive 0.08% 21.51% 7.41% 12.89%
WORLD BOND
VTABX
Choice $
VANGUARD TOTAL INTL BD IDX ADMIRAL Passive 0.12% 1.14% 4.04%
INFLATION-PROTECTED BOND
VIPIX
Choice $
VANGUARD INFLATION-PROTECTED SECS I Passive 0.07% 1.43% 2.07% 0.98%
TARGET-DATE 2050
VFIFX
Choice $
VANGUARD TARGET RETIREMENT 2050 INV Passive 0.16% 14.70% 6.24% 9.50%
LARGE VALUE
VVIAX
Choice $
VANGUARD VALUE INDEX ADM Passive 0.08% 18.73% 9.61% 13.41%
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Thanks for all of the input I really appreciate it.