HSA Suggestions: where?

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Chicago60
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HSA Suggestions: where?

Post by Chicago60 »

I have now funded 3 years' worth of HSA at $7,750 per year with a balance now over 20K at Fifth Third bank, which is paying virtually no interest. No investment options, but also no fees at all. I rather move the funds and invest them for 8+ years until I use the balance to begin paying Medicare supplement premiums and other expenses. My preference would be to invest the money in a simple Total Stock Market type ETF or Mutual Fund, with no fees. I will add (under current law) $7,750 each year. Recommendations?
mcraepat9
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Re: HSA Suggestions: where?

Post by mcraepat9 »

Elements Financial (formerly Eli Lilly FCU) is one of the best for investing. Obviously if you have an HDHP from your employer, you benefit from funding from payroll deduction directly to their preferred HSA (due to FICA taxes) and then rolling over periodically to your preferred HSA.

https://thefinancebuff.com/best-hsa-pro ... money.html
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j0nnyg1984
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Re: HSA Suggestions: where?

Post by j0nnyg1984 »

I just "cashed out" my HSA from Lake Michigan Credit Union. They had offered 2% interest on the account when I first opened it - last year, they dropped it to 1%, and I no longer consider that satisfactory. I was planning on rolling it into HSA Bank since that is who my company uses now, but I'm not really happy with them either. I just hate to put my funds somewhere other than HSA Bank and have multiple accounts to worry about, especially if each require some cash holdback in order to invest without fees.
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rick0
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Re: HSA Suggestions: where?

Post by rick0 »

The wiki has a section covering several popular HSA Custodians.
I don't believe this is 100% current, but should give you some other ideas...

https://www.bogleheads.org/wiki/Health_ ... nd_options
Topic Author
Chicago60
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Re: HSA Suggestions: where?

Post by Chicago60 »

Excellent resources, thanks to all. I should have mentioned I am a sole proprietor, so I am my employer.
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abuss368
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Re: HSA Suggestions: where?

Post by abuss368 »

We have a High Deductible Health Plan with a related HSA. The HSA recently moved from Wells Fargo to Optum Bank.

Here is a link:

https://www.optumbank.com
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MechEngOSU
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Re: HSA Suggestions: where?

Post by MechEngOSU »

Fidelity has been very good and you can use low cost index funds in the HSA there
tyrnup13
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Re: HSA Suggestions: where?

Post by tyrnup13 »

I use Health Savings Administrators:

http://healthsavings.com

They have good choices. I use the Total Stock Market Index.
duckcalldan
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Re: HSA Suggestions: where?

Post by duckcalldan »

MechEngOSU wrote:Fidelity has been very good and you can use low cost index funds in the HSA there
I believe Fido doesn't offer HSAs to the general public, only through workplaces.
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flossy21
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Re: HSA Suggestions: where?

Post by flossy21 »

Here's a site that does comparison for various providers...

https://www.hsasearch.com/

I like the look of this one but I have no first hand experience...

https://www.hsasearch.com/hsa_providers/selectaccount/

I currently use HSA Administrators through my employer. My wife uses HealthEquity through her employer. They both offer some level of access to Vanguard funds so I am content with them but they do charge annual and monthly fees.
fabdog
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Re: HSA Suggestions: where?

Post by fabdog »

HSA bank has a paired investment account at TD Ameritrade, no commission ETF trades for Vanguard funds. If you leave $5K in your HSA cash account there are no fees, or you can put the whole amount at TD Ameritrade and HSA bank will charge $2.50/month

HSA bank pays tiered interest on balances in cash account, .05% up to 2500, 2500 to 5K at .1%

Mike
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camillus
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Re: HSA Suggestions: where?

Post by camillus »

I just wanted to chime in with this: keep it simple.

I recently opened an account at HSA Bank to invest with TD Ameritrade's trade-free ETFs. My employer's mandatory HSA provider wasn't very good.

The week after I opened accounts with HSA Bank and TD Ameritrade, my employer switched providers to someone much better.

All of a sudden, I had 4 accounts with HSA money spread to the wind. I'm currently unwinding all of this to have a single account with my employer's new HSA trustee, which allows for investing in Vanguard Institutional funds with a 40 bp fee. If I should have the good problem that this fee amounts to big dollars (due to a big balance) down the road, I will worry about it then. For right now, I'll keep it simple.
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techrover
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Re: HSA Suggestions: where?

Post by techrover »

I just opened at selectaccount after comparing other options. It has low fees, funds investment options for balance > 1K; and schwab brokerage after balance > 10K. Since you have more than 10K balance, you can get schwab brokerage access for 30$/yr fee(12$ Thriftsaver account + 18$ investment account fee).
Opening process was easy 5 min. Lets see how the rest turns out...
malabargold
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Re: HSA Suggestions: where?

Post by malabargold »

fabdog wrote:HSA bank has a paired investment account at TD Ameritrade, no commission ETF trades for Vanguard funds. If you leave $5K in your HSA cash account there are no fees, or you can put the whole amount at TD Ameritrade and HSA bank will charge $2.50/month

HSA bank pays tiered interest on balances in cash account, .05% up to 2500, 2500 to 5K at .1%

Mike
Unfortunately HSA Bank now has an additional $3/month
"Investment fee" - so their total charges are now $5.50/month!
transitional
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Re: HSA Suggestions: where?

Post by transitional »

I have optum bank thru my employer, and I like their investment options- many low cost vanguard funds. But they do charge 0.03% monthly maintenance fee (0.36% per year approximately) in addition to fund expense ratios. Is that maintenance fee too much?
Topic Author
Chicago60
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Re: HSA Suggestions: where?

Post by Chicago60 »

Thanks for the responses; very much appreciated. I did further research and discovered I can invest in Vanguard 500 through Fifth Third where I currently hold my HSA account, with somewhat reasonable fees. I likely will stay put.
*3!4!/5!
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Re: HSA Suggestions: where?

Post by *3!4!/5! »

techrover wrote:I just opened at selectaccount after comparing other options. It has low fees, funds investment options for balance > 1K; and schwab brokerage after balance > 10K. Since you have more than 10K balance, you can get schwab brokerage access for 30$/yr fee(12$ Thriftsaver account + 18$ investment account fee).
Opening process was easy 5 min. Lets see how the rest turns out...
Did they require you to set up a deposit, as part of their enrollment? Their brochure
https://www.selectaccount.com/wp-conten ... -Guide.pdf
says on page 4: "If you are opening an Individual Account that is not part of an employer group, you will be asked to make an initial deposit of at least a $1.00." If it is required then I can't open it, as I already have contributed the max. I find it hard to believe they would do something that ridiculous. I'm ready to open an account but this would stop me.
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Flobes
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Re: HSA Suggestions: where?

Post by Flobes »

Chicago60 wrote:...and invest them for 8+ years until I use the balance to begin paying Medicare supplement premiums...
FYI Your HSA can be used to pay for Medicare Part B and Medicare Part D, but HSA cannot be used to pay for Medicare supplement premiums.
techrover
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Re: HSA Suggestions: where?

Post by techrover »

*3!4!/5! wrote:
techrover wrote:I just opened at selectaccount after comparing other options. It has low fees, funds investment options for balance > 1K; and schwab brokerage after balance > 10K. Since you have more than 10K balance, you can get schwab brokerage access for 30$/yr fee(12$ Thriftsaver account + 18$ investment account fee).
Opening process was easy 5 min. Lets see how the rest turns out...
Did they require you to set up a deposit, as part of their enrollment? Their brochure
https://www.selectaccount.com/wp-conten ... -Guide.pdf
says on page 4: "If you are opening an Individual Account that is not part of an employer group, you will be asked to make an initial deposit of at least a $1.00." If it is required then I can't open it, as I already have contributed the max. I find it hard to believe they would do something that ridiculous. I'm ready to open an account but this would stop me.
I opened the account online as individual and selected ThriftSaver. It allowed to open the account without needing to fund it, and then I had to fund it which I did via online ACH transfer from my bank. After few days, the funds did show up. I was able to open Schwab Brokerage Account(18$/yr fee) for balance amount over 1000$. Brokerage account was opened after couple days. So I have 1000$ in Thriftsaver account (got a debit card too) earning 0.1% and remaining in Schwab which I will be investing soon(couldn't find time to do it). All this happened in last 2 weeks without a single phone call.
*3!4!/5!
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Re: HSA Suggestions: where?

Post by *3!4!/5! »

techrover wrote:
*3!4!/5! wrote:
techrover wrote:I just opened at selectaccount after comparing other options. It has low fees, funds investment options for balance > 1K; and schwab brokerage after balance > 10K. Since you have more than 10K balance, you can get schwab brokerage access for 30$/yr fee(12$ Thriftsaver account + 18$ investment account fee).
Opening process was easy 5 min. Lets see how the rest turns out...
Did they require you to set up a deposit, as part of their enrollment? Their brochure
https://www.selectaccount.com/wp-conten ... -Guide.pdf
says on page 4: "If you are opening an Individual Account that is not part of an employer group, you will be asked to make an initial deposit of at least a $1.00." If it is required then I can't open it, as I already have contributed the max. I find it hard to believe they would do something that ridiculous. I'm ready to open an account but this would stop me.
I opened the account online as individual and selected ThriftSaver. It allowed to open the account without needing to fund it, and then I had to fund it which I did via online ACH transfer from my bank. After few days, the funds did show up. I was able to open Schwab Brokerage Account(18$/yr fee) for balance amount over 1000$. Brokerage account was opened after couple days. So I have 1000$ in Thriftsaver account (got a debit card too) earning 0.1% and remaining in Schwab which I will be investing soon(couldn't find time to do it). All this happened in last 2 weeks without a single phone call.
So it's possible to open it without initially funding it? You can fund it later? (I want to transfer from another HSA. I can't contribute because I contributed the max to the other HSA already.)
techrover
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Re: HSA Suggestions: where?

Post by techrover »

*3!4!/5! wrote:
techrover wrote:
*3!4!/5! wrote:
techrover wrote:I just opened at selectaccount after comparing other options. It has low fees, funds investment options for balance > 1K; and schwab brokerage after balance > 10K. Since you have more than 10K balance, you can get schwab brokerage access for 30$/yr fee(12$ Thriftsaver account + 18$ investment account fee).
Opening process was easy 5 min. Lets see how the rest turns out...
Did they require you to set up a deposit, as part of their enrollment? Their brochure
https://www.selectaccount.com/wp-conten ... -Guide.pdf
says on page 4: "If you are opening an Individual Account that is not part of an employer group, you will be asked to make an initial deposit of at least a $1.00." If it is required then I can't open it, as I already have contributed the max. I find it hard to believe they would do something that ridiculous. I'm ready to open an account but this would stop me.
I opened the account online as individual and selected ThriftSaver. It allowed to open the account without needing to fund it, and then I had to fund it which I did via online ACH transfer from my bank. After few days, the funds did show up. I was able to open Schwab Brokerage Account(18$/yr fee) for balance amount over 1000$. Brokerage account was opened after couple days. So I have 1000$ in Thriftsaver account (got a debit card too) earning 0.1% and remaining in Schwab which I will be investing soon(couldn't find time to do it). All this happened in last 2 weeks without a single phone call.
So it's possible to open it without initially funding it? You can fund it later? (I want to transfer from another HSA. I can't contribute because I contributed the max to the other HSA already.)
I think so. You should however call them to confirm since I didn't do a rollover.
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