Author Topic: HSA options  (Read 1526 times)

Bigjones

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HSA options
« on: September 03, 2014, 08:01:12 AM »
In a few months I plan to start maxing my accounts including my HSA.  I went to the site and notice I will have to choose from the following products.

Any advice would be usefull


 
JPMorgan Prime Money Market Fund – Morgan Shares……
   
JPMorgan Core Bond Fund – A Shares……
   
Principal Strategic Asset Management Flexible Income Portfolio – R4 Shares……

Principal Strategic Asset Management Balanced Portfolio – R4 Shares……
   
Principal Strategic Asset Management Strategic Growth Portfolio – R4 Shares……
   
JPMorgan Equity Index Fund – A Shares……
   
Principal MidCap Blend Fund – R4 Shares……
   
JPMorgan Small Cap Equity Fund – A Shares……
   
BlackRock International Index Fund – A Shares……


Anyone with much if any knowledge of those funds?

Nothlit

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Re: HSA options
« Reply #1 on: September 03, 2014, 08:30:14 AM »
I have no firsthand knowledge of any of those funds, but they do not look like anything I would be interested in choosing. A quick search of a few indicates they all have relatively high expense ratios compared to Vanguard or Spartan index funds.

Unless you are particularly attached to this HSA for some reason, I would encourage you to seek out a different HSA provider that offers better investment options. If this is an HSA you opened privately, then you can just close it and have the funds transferred to a different HSA custodian. If you can't close this HSA because it's sponsored/provided by your employer and/or insurer, no problem. You can still open a second HSA somewhere else and just periodically transfer any accumulated money over from HSA #1 to HSA #2. That's what I do. I let money accumulate in my employer-sponsored HSA for a year at a time, then transfer it all over to a different HSA at the end of the year. Many people here like HSA Bank or HSA Administrators, which allow you to invest in Vanguard index funds. There are other options too.

If you do the transfer yourself (by withdrawing from one and depositing at the other) then it's considered a rollover, which you can only do once every 12 months. However, if you ask Custodian #1 to transfer directly to Custodian #2 so the money never passes through your hands, it's not considered a rollover and can be done as often as you like (if your custodians are amenable to it). It's not that difficult to figure out, but make sure you familiarize yourself with the IRS rules, otherwise there can be tax consequences. :-)
« Last Edit: September 03, 2014, 08:32:40 AM by Nothlit »