Author Topic: Where can I move my HSA into a Vanguard fund.  (Read 3954 times)

BTDretire

  • Handlebar Stache
  • *****
  • Posts: 2445
Where can I move my HSA into a Vanguard fund.
« on: January 24, 2016, 06:23:37 PM »
I want to move my HSA from a bank to a place that will allow investment in a Vangaurd fund.
Also I want low cost.

GrOW

  • Bristles
  • ***
  • Posts: 273
    • Gringing Out Wealth
Re: Where can I move my HSA into a Vanguard fund.
« Reply #1 on: January 24, 2016, 06:40:31 PM »
There is a movement in the major HSA admins to offer low cost investment options which typically means Vanguard. They are targeting what they call savers - those that seek to max contributions, limit withdrawals, and want low cost index options. 

Health Savings Administrators was an early leader of this movement and still one of the few that have a first dollar investment option - i.e. You don't have to get up to say $1k or $2,500 before you invest. Lately, HealthEquity, WageWorks, and UMB have gotten in on this idea. More will follow them.

So good news is you have options now and will have more in the next year or two.

capitalninja

  • Stubble
  • **
  • Posts: 102
  • Know what the other guy is making on the deal...
    • Entrepreneur, Investor, Life Advice
Re: Where can I move my HSA into a Vanguard fund.
« Reply #2 on: January 24, 2016, 06:43:18 PM »
http://healthsavings.com

Nice thing is that you can also get into the Admiral funds without meeting the dollar requirement that you would were you investing with Vanguard directly.

fmzip

  • Stubble
  • **
  • Posts: 190
  • Location: CT
Re: Where can I move my HSA into a Vanguard fund.
« Reply #3 on: January 24, 2016, 07:05:26 PM »
^^^^ I have my HSA here

Indexer

  • Handlebar Stache
  • *****
  • Posts: 1338
Re: Where can I move my HSA into a Vanguard fund.
« Reply #4 on: January 24, 2016, 07:42:26 PM »
I can also vouche for health savings administrators.

seattlecyclone

  • Magnum Stache
  • ******
  • Posts: 4729
  • Age: 34
  • Location: Seattle, WA
Re: Where can I move my HSA into a Vanguard fund.
« Reply #5 on: January 24, 2016, 07:47:10 PM »
Unfortunately added fees seem to be par for the course with HSAs.

With Health Savings Administrators, you pay $45/year plus 0.25% of invested assets annually, on top of the underlying fund expense ratios.

HealthEquity's new Index Investor HSA is a little better, charging $36/year plus 0.24% of invested assets on top of the underlying expense ratios. One added benefit of HealthEquity is that they let you invest in Vanguard's Institutional level funds with slightly lower expense ratios than Admiral shares.

I can't wait for Vanguard to offer these accounts directly like they do with IRAs. Just let me buy the funds, leave my money invested, and don't charge me any extra.

BTDretire

  • Handlebar Stache
  • *****
  • Posts: 2445
Re: Where can I move my HSA into a Vanguard fund.
« Reply #6 on: January 25, 2016, 07:55:47 AM »
Thanks all,
 I like   http://healthsavings.com/members/fees/   a little more because I think it has a better selection of Vanguard funds.
I don't like the fee being a little higher. I have had my HSA in a bank for 6 years paying zip, so I hope getting it in the market it will do better.

seattlecyclone

  • Magnum Stache
  • ******
  • Posts: 4729
  • Age: 34
  • Location: Seattle, WA
Re: Where can I move my HSA into a Vanguard fund.
« Reply #7 on: January 25, 2016, 10:26:16 AM »
I like   http://healthsavings.com/members/fees/   a little more because I think it has a better selection of Vanguard funds.

This seems like a strange sentiment to me. HealthEquity has the Vanguard Institutional Index and Vanguard Extended Market funds, which can combine in a 4:1 ratio to be basically the same as the US Total Market index fund. They also have the Total Bond index, Total International Stock index, as well as a few more specialized indexes (REITs, small cap stocks, "growth" stocks, natural resources stocks, and TIPS). I find it hard to believe that none of these funds fit nicely into your preferred asset allocation.

Pooperman

  • Magnum Stache
  • ******
  • Posts: 2943
  • Age: 29
  • Location: North Carolina
Re: Where can I move my HSA into a Vanguard fund.
« Reply #8 on: January 25, 2016, 03:06:04 PM »
One people forget exists is Wells Fargo. No, you don't get Vanguard funds, but you do get a 0.25% S&P 500 fund and there are no admin fees so long as you have at least $5k between your cash and investment accounts combined. The min you can have in cash is $1k.

seattlecyclone

  • Magnum Stache
  • ******
  • Posts: 4729
  • Age: 34
  • Location: Seattle, WA
Re: Where can I move my HSA into a Vanguard fund.
« Reply #9 on: January 25, 2016, 03:42:14 PM »
One people forget exists is Wells Fargo. No, you don't get Vanguard funds, but you do get a 0.25% S&P 500 fund and there are no admin fees so long as you have at least $5k between your cash and investment accounts combined. The min you can have in cash is $1k.

Thanks for the tip! I currently have a HealthEquity HSA where my employer pays all the fees, but this would be a nice option for a rollover when I leave the company.

iamlindoro

  • Handlebar Stache
  • *****
  • Posts: 1520
    • The Earth Awaits
Re: Where can I move my HSA into a Vanguard fund.
« Reply #10 on: January 25, 2016, 03:47:44 PM »
I can't wait for Vanguard to offer these accounts directly like they do with IRAs. Just let me buy the funds, leave my money invested, and don't charge me any extra.

Out of curiosity, is Vanguard actually moving towards directly administering HSAs?  I would love it also.

seattlecyclone

  • Magnum Stache
  • ******
  • Posts: 4729
  • Age: 34
  • Location: Seattle, WA
Re: Where can I move my HSA into a Vanguard fund.
« Reply #11 on: January 25, 2016, 04:04:58 PM »
I can't wait for Vanguard to offer these accounts directly like they do with IRAs. Just let me buy the funds, leave my money invested, and don't charge me any extra.

Out of curiosity, is Vanguard actually moving towards directly administering HSAs?  I would love it also.

I am not aware of anything on this front. It just seems like a logical step for them. It doesn't seem like the administrative overhead for running an HSA should be that much different from IRAs. If they offer an IRA, why not an HSA?

iamlindoro

  • Handlebar Stache
  • *****
  • Posts: 1520
    • The Earth Awaits
Re: Where can I move my HSA into a Vanguard fund.
« Reply #12 on: January 25, 2016, 04:08:27 PM »
I am not aware of anything on this front. It just seems like a logical step for them. It doesn't seem like the administrative overhead for running an HSA should be that much different from IRAs. If they offer an IRA, why not an HSA?

Agreed, it makes perfect sense.  I hope they do so before I FIRE!

GrOW

  • Bristles
  • ***
  • Posts: 273
    • Gringing Out Wealth
Re: Where can I move my HSA into a Vanguard fund.
« Reply #13 on: January 25, 2016, 04:47:37 PM »
It doesn't seem like the administrative overhead for running an HSA should be that much different from IRAs. If they offer an IRA, why not an HSA?

This is not the case today. IRAs became a commodity product long ago. HSAs are a ways off from that. In fact, the admins that can differentiate themselves in features for employer and employees are growing at a fast rate while those offering barebones options are not.

HSAs at this time, require a tremendous amount of education effort, the spending aspect has many nuances that require specialized tools in the payments industry, and on and on.

Will innovation and competition change this? For sure. But it will take time. In the mean time, hope that consumer direct (not through an employer) offerings keep improving.
« Last Edit: January 25, 2016, 04:53:27 PM by Redcedar »

seattlecyclone

  • Magnum Stache
  • ******
  • Posts: 4729
  • Age: 34
  • Location: Seattle, WA
Re: Where can I move my HSA into a Vanguard fund.
« Reply #14 on: January 27, 2016, 08:07:43 AM »
...the spending aspect has many nuances that require specialized tools in the payments industry...

Does it, really? I get that certain administrators will send you a debit card where you can pull directly from the HSA for expenses coded as medical. Heck, mine even ties into the health plan so that you can click a button to get reimbursed the exact amount of your coinsurance for a procedure. Is there anything stopping a company from offering an HSA without any of that, for those who want to use it as more of a savings/investing account rather than a spending account?

BTDretire

  • Handlebar Stache
  • *****
  • Posts: 2445
Re: Where can I move my HSA into a Vanguard fund.
« Reply #15 on: January 27, 2016, 10:38:01 AM »
I can't wait for Vanguard to offer these accounts directly like they do with IRAs. Just let me buy the funds, leave my money invested, and don't charge me any extra.

Out of curiosity, is Vanguard actually moving towards directly administering HSAs?  I would love it also.

I am not aware of anything on this front. It just seems like a logical step for them. It doesn't seem like the administrative overhead for running an HSA should be that much different from IRAs. If they offer an IRA, why not an HSA?
A lot more withdrawals from each account for most peoples HSA. (non mustachian)
Not like the usual retirement account.
But I keep hoping Vanguard will start hosting HSAs.

GrOW

  • Bristles
  • ***
  • Posts: 273
    • Gringing Out Wealth
Re: Where can I move my HSA into a Vanguard fund.
« Reply #16 on: January 27, 2016, 05:52:30 PM »
...the spending aspect has many nuances that require specialized tools in the payments industry...

Does it, really? I get that certain administrators will send you a debit card where you can pull directly from the HSA for expenses coded as medical. Heck, mine even ties into the health plan so that you can click a button to get reimbursed the exact amount of your coinsurance for a procedure. Is there anything stopping a company from offering an HSA without any of that, for those who want to use it as more of a savings/investing account rather than a spending account?

While the burden of substantiation falls on the individual with HSAs, as opposed on the admin with FSAs or HRAs, admins often limit spending to specific Merchant Category Codes or MCCs and some are working to restrict spending down to a lower level such as specific baskets of goods by SKUs inside a merchant. An example would be allowing purchases of produce but not cigarettes for purchases made in WalMart. After this is accomplished, admin are looking to offer discounts by product as further incentive to spend on not only medically eligible items but heathy eating choices.

Another example is complex authorization matching logic which can help members easily match a medical claims to a transaction and store for use in a future tax free withdrawal of the same amount. As you note matching coinsurance exists today but so many other types of transactions are harder to match to claims.