Author Topic: Best Index Fund Options for HSA with Low Funding (<5k)?  (Read 1138 times)

LurkingMustache

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Best Index Fund Options for HSA with Low Funding (<5k)?
« on: November 11, 2016, 02:36:09 PM »
Hi there!

Have a question for the great minds here.  I have recently started to invest in my HSA with my first max contribution for 2016 being $3,350.  This puts me under the amount needed to invest in Fidelity's premium index fund (FSTVX) that I use in my Roth IRA.

Does anyone have suggestions for index funds with relatively low fees if you are below many of the minimum contribution requirements due to annual caps on contributions for accounts such as the HSA?

Thanks

JumpInTheFIRE

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Re: Best Index Fund Options for HSA with Low Funding (<5k)?
« Reply #1 on: November 11, 2016, 07:54:06 PM »
Hi there!

Have a question for the great minds here.  I have recently started to invest in my HSA with my first max contribution for 2016 being $3,350.  This puts me under the amount needed to invest in Fidelity's premium index fund (FSTVX) that I use in my Roth IRA.

Does anyone have suggestions for index funds with relatively low fees if you are below many of the minimum contribution requirements due to annual caps on contributions for accounts such as the HSA?

Thanks

Why not just buy FSTMX, which is the "Investor Class" version of FSTVX?  It has a higher expense ratio (0.09% instead of 0.045%) but that's still miles below what a managed fund charges.  It has a minimum of $2500 and once you hit $10k the shares will automatically convert to FSTVX and you'll get the lower expense ratio.