Author Topic: Investing an HSA  (Read 1440 times)

Recliner

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Investing an HSA
« on: October 06, 2016, 12:48:24 PM »
I've got $8k in my HSA with a bank my employer requires we use.  They do not offer any investment options and I'm planning on maxing my HSA contribution next year.  I'm wanting to invest $5k now and more throughout next year.

Where is a place I can move $5k of it to and invest it? I've heard of hsabank.com but couldn't locate how they  harte fees so I'm hesitant to use them and vanguard doesn't offer investments for HSA

Mother Fussbudget

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Re: Investing an HSA
« Reply #1 on: October 06, 2016, 05:04:54 PM »
My company uses HSAbank, and you can setup an associated investment account at TD Ameritrade.  In our plan, there's a $3/month fee *unless* you keep at least $3000 in cash in the HSAbank account.  Any amount above $3K you can transfer to Ameritrade for investing.  So every month, I log-in to HSAbank, and using their on-line tools transfer that month's contribution from HSAbank to Ameritrade leaving a $3000.01 balance in HSAbank.  I'm not sure if the fee structure is the same for everyone, but that should be easy to check.


MustacheAndaHalf

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Re: Investing an HSA
« Reply #3 on: October 07, 2016, 07:40:14 AM »
When you look at fees, think "compared to what?".  For HSA Bank, how much would you pay to switch $5,000 cash into $5,000 invested?  Their fee schedule (for individuals, not employer accounts) lists $5.50/mo ($3/mo invest fee + $2.50/mo min balance fee) or $66/year.  You can pay $0 fee and hold $5000 in cash, or you can pay $66/year in fees and invest all $5000 in investments.

$66 / $5000 = 1.3%.  So if, like me, you think the stock market will return an average of more than 1.3% per year, you're better off paying the $66/year and switching your last $5000 to investments.  This assumes an individual with an HSA, rather than an employer with everything at HSA Bank.

Gin1984

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Re: Investing an HSA
« Reply #4 on: October 07, 2016, 09:42:44 AM »
My company uses HSAbank, and you can setup an associated investment account at TD Ameritrade.  In our plan, there's a $3/month fee *unless* you keep at least $3000 in cash in the HSAbank account.  Any amount above $3K you can transfer to Ameritrade for investing.  So every month, I log-in to HSAbank, and using their on-line tools transfer that month's contribution from HSAbank to Ameritrade leaving a $3000.01 balance in HSAbank.  I'm not sure if the fee structure is the same for everyone, but that should be easy to check.
Nope.  Without the employer we are required to keep $5000 in to be without fees.  While I am at my employer I don't have to pay ANY fees from HSA bank (I assume my employer is paying them).