Author Topic: Optum Bank adds Vanguard options to HSA  (Read 632 times)

Rural

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Optum Bank adds Vanguard options to HSA
« on: January 24, 2019, 10:04:42 AM »
Just got the following from Optum (which my employer uses for HSA direct deposits). It doesn't seem to suggest the fee structure has changed, so there's still a cost to invest, but it's an improvement.

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Subject: New HSA investment choices now available to help make your savings go further

Dear [Rural],


We are happy to announce that you now have access to an enhanced fund lineup for your health savings account (HSA). The lineup will continue to provide funds with no trading costs, commissions or minimum balances, managed by extremely reputable firms.

To provide further diversification options, your new investment lineup now includes the Charles Schwab Target Date Fund series, and the highly rated Vanguard Index Fund options. They feature below industry average expense ratios and above industry average Morningstar fund ratings.

Investing basics:

Once your HSA reaches the minimum investment threshold, you may choose to invest a portion of your HSA dollars in mutual funds ó just like you would with a 401(k). The minimum amount that can be transferred at one time is $100. Therefore, you will need your threshold amount, plus $100 in your HSA before you are eligible to invest. You may choose from a wide variety of mutual funds and any investment earnings such as interest or dividends are income tax-free.

Find the right investment for you

See how the new mutual funds might fit into your investment plan. Log into your account to review your investment options, or contact Optum Bankģ Customer Service at 1-877-470-1771 for more information.




Edited to remove randomly-inserted "make the font tiny" code.
« Last Edit: January 24, 2019, 10:07:29 AM by Rural »

appleshampooid

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Re: Optum Bank adds Vanguard options to HSA
« Reply #1 on: January 24, 2019, 10:34:57 AM »
Interesting. I have an HSA with them, and VTSAX has been available from the time the account was opened. I just checked and they have a bunch of other Vanguard funds available as well - don't recall if these were there at the start or not. I would bet the fund selection can vary from employer to employer just like 401(k)s.

Either way, it's a good change!

Rural

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Re: Optum Bank adds Vanguard options to HSA
« Reply #2 on: January 24, 2019, 11:05:33 AM »
Oh, interesting. It may well vary by employer; I previously had Fidelity funds but no Vanguard.

katscratch

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Re: Optum Bank adds Vanguard options to HSA
« Reply #3 on: January 24, 2019, 03:57:26 PM »
We had both Fidelity and Vanguard options when we switched to Optum, so I bet it is employer-specific. I definitely like Optum better than our previous offerings through Wells Fargo.

skyrefuge

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Re: Optum Bank adds Vanguard options to HSA
« Reply #4 on: January 24, 2019, 05:12:27 PM »
I've only been with Optum for a month or two, but Vanguard funds have been there since the first time I looked, and there are no Fidelity funds, so I'm also guessing it's employer-specific. Also, the only thing I could find relative to fees was:

"There are no trading fees charged for investments associated with your HSA. Other fees and expenses applicable to continued investments are described in each mutual fundís current prospectus."

So the fee structure might be employer-specific too, since you're implying there's something more to your fees (and maybe there are to mine too, I just haven't seen it yet!)

And for me, not only are there Vanguard funds, they're mostly the Institutional versions, so I'm in VITSX (0.035% ER) instead of VTSAX (0.04% ER). Barely a difference, especially at HSA-level amounts, but appreciated nonetheless!

Radagast

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Re: Optum Bank adds Vanguard options to HSA
« Reply #5 on: January 24, 2019, 09:47:17 PM »
I guess it is per employer? My employer used Wells Fargo which sold out to Optum about two years ago. Then more than a year ago we got switched from WF funds to the fund line up you describe.

appleshampooid

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Re: Optum Bank adds Vanguard options to HSA
« Reply #6 on: January 25, 2019, 07:03:32 AM »
I've only been with Optum for a month or two, but Vanguard funds have been there since the first time I looked, and there are no Fidelity funds, so I'm also guessing it's employer-specific. Also, the only thing I could find relative to fees was:

"There are no trading fees charged for investments associated with your HSA. Other fees and expenses applicable to continued investments are described in each mutual fundís current prospectus."

So the fee structure might be employer-specific too, since you're implying there's something more to your fees (and maybe there are to mine too, I just haven't seen it yet!)

And for me, not only are there Vanguard funds, they're mostly the Institutional versions, so I'm in VITSX (0.035% ER) instead of VTSAX (0.04% ER). Barely a difference, especially at HSA-level amounts, but appreciated nonetheless!
Mine didn't have any fees while employed, but when my wife separated from the company, there is now a $3.00/month fee. It sucks, but I looked at alternatives and it seems there is no truly free HSA with good investment options. I'm hoping in the future I can roll it over to another employer-sponsored HSA, but my wife isn't likely to work again for a long time, and I don't believe I can roll it over to an HSA in my name. So the $36/year will be a drain, but minimal compared to the expected gains in the account (about $8k invested in VTSAX).