Hey Everyone!
I'm currently enrolled in a HDHP at work and my employer contributes $500/year + $300 in wellness benefits to my HealthHub/PayFlex HSA for a total of $800/year. The current maximum contribution (including employer contributions) is $3,300, which means I can contribute $2,500 tax free. As everyone knows, this means free of federal, state (I live in FL so no problems here), and FICA taxes, which for me equates to 22.65% (15% Fed, 6.2% SS, 1.45% Medicare). These savings are significant, and I don't think I want to pass them up!
In addition, there is a requirement that I keep $500 in the savings account in my HSA, but I can invest anything above this amount. Just something to keep in mind when running calculations.
Here are my questions:
1. There is an "investment fee" of $1.75/month or $21/year. Is this normal? Should I still look into investing the funds (as opposed to just keeping the dollars in their savings account at 0.25%)?
2. I've attached a picture of the available funds I can choose from - it's not the greatest selection, so I'm looking for some advice on which fund to invest in. The lowest ER I could find is 0.64%, but I'm assuming it may not necessarily mean this is the best fund overall.
3. Lastly, I haven't yet signed up to have deductions come out of my paycheck pre-tax, but I also haven't contributed anything above the $800 yet this year either. Can I only sign up for payroll deductions during open enrollment? (I have a feeling this question may be employer/plan dependent).
I'd appreciate some advice from some of you more experienced "workers" who may have used/currently use HSAs! Thanks!