HSA advice needed

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cuda74360
Posts: 88
Joined: Tue Jul 31, 2007 7:04 pm

HSA advice needed

Post by cuda74360 » Sat Aug 12, 2017 10:02 am

Hi,

My current HSA strategy is to use my HSA for current expenses, keeping the deductible in cash at the start of the benefit year, and investing everything else.

I currently have an HSA at Optum Bank, via my employer. I’m required to use this account to receive matching contributions and to contribute via payroll (to save on FICA taxes.) Optum charges $1/month for the account, earning no interest, plus an additional $3/month to invest. I’m currently investing in VTSAX and consider it part of my retirement portfolio. The fees come out of the cash balance, making this the equivalent of a $36 purchase fee on my yearly contribution.

I’m thinking about moving my HSA investments to Saturna, keeping cash at Optum for current expenses. If I use VTI or SWTSX, then I can reduce my purchase fee from $36 to $14.95. Once per year I’ll withdraw the excess funds from Optum, deposit them as a rollover contribution at Saturna, and purchase more shares.

I have ~25 years until retirement, and the current HSA investment balance is around $4,000. Yearly contributions are expected to be around $1,200.

Would it be worth it to move to Saturna, or should I just stay with Optum?

Thanks!

Nate79
Posts: 993
Joined: Thu Aug 11, 2016 6:24 pm
Location: Portland, OR

Re: HSA advice needed

Post by Nate79 » Sat Aug 12, 2017 10:11 am

All that for $20 per year?

Balthanon
Posts: 3
Joined: Fri Jul 08, 2016 12:22 am

Re: HSA advice needed

Post by Balthanon » Sat Aug 12, 2017 10:26 am

I have Optum myself and I found that one thing you can do is switch to a different type of account-- they have three or four, but the "savings" variety doesn't a monthly investment fee. I'm currently paying I think $1.50 monthly service fee, but that is after a small reduction because my employer covers part of the service fee. It should still reduce your overall costs so long as you maintain the standard $2000 buffer they require. (Which is required on almost any of the accounts.)

If you transfer money to another HSA provider I believe there are fees for that as well, so you're likely to come out ahead with the different account.

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willthrill81
Posts: 2078
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: HSA advice needed

Post by willthrill81 » Sat Aug 12, 2017 10:27 am

I agree with Nate79 that a savings of $20 annually does not seem worth the effort to me.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

cuda74360
Posts: 88
Joined: Tue Jul 31, 2007 7:04 pm

Re: HSA advice needed

Post by cuda74360 » Sat Aug 12, 2017 11:20 am

It wouldn't be that much work, really. And could all be done via ACH transfer.

That being said, it's only $20 per year... which is why I asked. Part of me wants to eliminate as many fees as possible, while another says that it's not worth the effort.
willthrill81 wrote:
Sat Aug 12, 2017 10:27 am
I agree with Nate79 that a savings of $20 annually does not seem worth the effort to me.
Nate79 wrote:
Sat Aug 12, 2017 10:11 am
All that for $20 per year?

cuda74360
Posts: 88
Joined: Tue Jul 31, 2007 7:04 pm

Re: HSA advice needed

Post by cuda74360 » Sat Aug 12, 2017 11:22 am

Really? Are the options listed online anywhere?
Balthanon wrote:
Sat Aug 12, 2017 10:26 am
I have Optum myself and I found that one thing you can do is switch to a different type of account-- they have three or four, but the "savings" variety doesn't a monthly investment fee. I'm currently paying I think $1.50 monthly service fee, but that is after a small reduction because my employer covers part of the service fee. It should still reduce your overall costs so long as you maintain the standard $2000 buffer they require. (Which is required on almost any of the accounts.)

If you transfer money to another HSA provider I believe there are fees for that as well, so you're likely to come out ahead with the different account.

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