After finishing the Bogleheads' book I am looking to set up an HSA to begin investing in vanguard fund/etfs. I have found many helpful articles on the subject but still have a couple questions:
1) I see the HSA contribution is due by april 15 of the following year, but when must the HSA qualified insurance plan go into effect? If I were to start the qualified plan on say Sept. 1 would I still qualify to contribute the full $3,250 for the current year?
2) It seems as though HSA Administrators & HSA Bank are widely accepted as the two best HSA plans for Vanguard purchases.
When opening a new account (limited to having a 3,250 balance for individual) and planning to fully invest wouldn’t it make sense to initially go with hsa admins $45 fee+10.40 mutual fund fee=$55.40 total – (10.40 being the yearly .0032 expense on $3,250) vs paying $66 to fully invest the balance with hsa bank?
In year 2 the total cost of HSA admins would end up around the $66 fee for using HSA Bank (assuming balance around $6,500)
After two years I can see the advantage of HSA bank, but for a brand new account with current fee structures HSA Administrators seems like the best option. I am aware of the $25 fee to change the account over, but am I missing anything else that is skewing my #'s? The way fees are changing it seems very likely that 2 years from now fees will be completely different anyway.
*Additional info: I am planning this account to be used as a long term tax shelter/emergency fund (I do not plan on using to fund medical expenses unless absolutely necessary, once I have built up enough medical receipts I will begin to use a portion of this account as my emergency fund, so I do not plan on any banking/debit accounts)