HSA Bank and TD Ameritrade

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sixtoeight
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HSA Bank and TD Ameritrade

Post by sixtoeight »

I'm new to the HSA. I signed up to the GEHA HSA plan through my employer back in December. I'm contributing the $3,500 individual max into my HSA account this year and have signed up with TD Ameritrade, the brokerage firm linked with HSA Bank. For people who have used HSA Bank and TD Ameritrade, I'm seeking general advice on how to use and invest my HSA contributions. What are some good mutual funds, money market, and ETFs to put my HSA contributions in with TD Ameritrade?
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Darth Xanadu
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Re: HSA Bank and TD Ameritrade

Post by Darth Xanadu »

I have not done exhaustive research, but I use SPTM (SPDR Portfolio Total Stock Market ETF). Expense ratio is 0.03% and it a commission-free ETF on TD Ameritrade.

I don't keep much cash within TDA (there was a recent thread about this, however; I think folks were suggesting PCOXX as a place to put cash?).

I keep the minimum cash balance required at HSA bank to avoid monthly fees as part of my plan for two reasons: avoid the monthly charge (even though it is less than $2/month) and because this is also equivalent to my family deductible for the year. I sleep better knowing I can grab that cash at any moment. It's possible that if my balance grows over time, I will forgo the cash holding altogether, but for now it works for me.
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Chrono Triggered
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Re: HSA Bank and TD Ameritrade

Post by Chrono Triggered »

Since HSAs are a triple tax advantage account, and is a smaller account compared to an IRA and 401k, I personally put the riskiest asset(s) of my portfolio in there. I have a SCV tilt, so I use SLYV. If you use total stock, SPTM is a fine choice. I also pay for health expenses out of pocket.

Explore the commission free ETF listing, sort by expense ratio, and you'll see a nice selection to choose from.
gclancer
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Re: HSA Bank and TD Ameritrade

Post by gclancer »

With GEHA you don’t need to leave any minimum at HSA Bank, thus, if you’re planning to keep any cash you should move it to TD and use PCOXX (2.5% interest rather than 0.1% interest at HSA Bank). For investments since it will be a small amount initially I would just invest in SPTM (no transaction fee Total US ETF).
Topic Author
sixtoeight
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Re: HSA Bank and TD Ameritrade

Post by sixtoeight »

gclancer wrote: Tue Feb 26, 2019 5:12 pm With GEHA you don’t need to leave any minimum at HSA Bank, thus, if you’re planning to keep any cash you should move it to TD and use PCOXX (2.5% interest rather than 0.1% interest at HSA Bank). For investments since it will be a small amount initially I would just invest in SPTM (no transaction fee Total US ETF).
Do you have any general advice how much to invest and how much to keep in cash?
aristotelian
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Re: HSA Bank and TD Ameritrade

Post by aristotelian »

Before you do anything, is HSA Bank charging you any fees for the TD account? Lively and Fidelity are now free.
Corgitodd
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Re: HSA Bank and TD Ameritrade

Post by Corgitodd »

In light of the Govt probe into Fidelitys fees, is there any concerns about Fidelity HSA?
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birdog
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Re: HSA Bank and TD Ameritrade

Post by birdog »

I keep $5k at HSA bank to avoid the fee and I invest the TD Ameritrade account all in SPTM (the total stock market ETF that trades commission-free at TDA).
tj
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Re: HSA Bank and TD Ameritrade

Post by tj »

Corgitodd wrote: Wed Feb 27, 2019 11:09 am In light of the Govt probe into Fidelitys fees, is there any concerns about Fidelity HSA?

I don't follow. It had to do with funds on their fund marketplace. Why would anyone using their HSA use those funds?
tj
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Re: HSA Bank and TD Ameritrade

Post by tj »

sixtoeight wrote: Tue Feb 26, 2019 4:29 pm I'm new to the HSA. I signed up to the GEHA HSA plan through my employer back in December. I'm contributing the $3,500 individual max into my HSA account this year and have signed up with TD Ameritrade, the brokerage firm linked with HSA Bank. For people who have used HSA Bank and TD Ameritrade, I'm seeking general advice on how to use and invest my HSA contributions. What are some good mutual funds, money market, and ETFs to put my HSA contributions in with TD Ameritrade?

Geha contributes $900, so hopefully you don't go over the max.
Topic Author
sixtoeight
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Re: HSA Bank and TD Ameritrade

Post by sixtoeight »

tj wrote: Wed Feb 27, 2019 12:55 pm
sixtoeight wrote: Tue Feb 26, 2019 4:29 pm I'm new to the HSA. I signed up to the GEHA HSA plan through my employer back in December. I'm contributing the $3,500 individual max into my HSA account this year and have signed up with TD Ameritrade, the brokerage firm linked with HSA Bank. For people who have used HSA Bank and TD Ameritrade, I'm seeking general advice on how to use and invest my HSA contributions. What are some good mutual funds, money market, and ETFs to put my HSA contributions in with TD Ameritrade?

Geha contributes $900, so hopefully you don't go over the max.
I contribute only $2,600
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jhfenton
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Re: HSA Bank and TD Ameritrade

Post by jhfenton »

tj wrote: Wed Feb 27, 2019 12:55 pm
Corgitodd wrote: Wed Feb 27, 2019 11:09 am In light of the Govt probe into Fidelitys fees, is there any concerns about Fidelity HSA?

I don't follow. It had to do with funds on their fund marketplace. Why would anyone using their HSA use those funds?
+1 Bogleheads are not likely to use any expensive third-party funds that would be paying a hidden fee to Fidelity. I only own one fund in my Fidelity HSA: FPADX/Fidelity Emerging Markets at 8 bp.
Philliesfan
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Re: HSA Bank and TD Ameritrade

Post by Philliesfan »

Darth Xanadu wrote: Tue Feb 26, 2019 4:37 pm I have not done exhaustive research, but I use SPTM (SPDR Portfolio Total Stock Market ETF). Expense ratio is 0.03% and it a commission-free ETF on TD Ameritrade.

I don't keep much cash within TDA (there was a recent thread about this, however; I think folks were suggesting PCOXX as a place to put cash?).

I keep the minimum cash balance required at HSA bank to avoid monthly fees as part of my plan for two reasons: avoid the monthly charge (even though it is less than $2/month) and because this is also equivalent to my family deductible for the year. I sleep better knowing I can grab that cash at any moment. It's possible that if my balance grows over time, I will forgo the cash holding altogether, but for now it works for me.
I use this same exact position and strategy. I have all of my funds invested with SPTM.
skylar
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Re: HSA Bank and TD Ameritrade

Post by skylar »

sixtoeight wrote: Tue Feb 26, 2019 4:29 pm I'm new to the HSA. I signed up to the GEHA HSA plan through my employer back in December. I'm contributing the $3,500 individual max into my HSA account this year and have signed up with TD Ameritrade, the brokerage firm linked with HSA Bank. For people who have used HSA Bank and TD Ameritrade, I'm seeking general advice on how to use and invest my HSA contributions. What are some good mutual funds, money market, and ETFs to put my HSA contributions in with TD Ameritrade?
I recently moved from HSA Bank to Lively to avoid the monthly investment account fees, but I used the SPDR Total Bond Index fund (SPAB) in both places. Lively has the same TD Ameritrade platform, so the transfer was in-kind and completely seamless aside from needing a different account name/number.
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birdog
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Re: HSA Bank and TD Ameritrade

Post by birdog »

skylar wrote: Wed Feb 27, 2019 9:01 pm
sixtoeight wrote: Tue Feb 26, 2019 4:29 pm I'm new to the HSA. I signed up to the GEHA HSA plan through my employer back in December. I'm contributing the $3,500 individual max into my HSA account this year and have signed up with TD Ameritrade, the brokerage firm linked with HSA Bank. For people who have used HSA Bank and TD Ameritrade, I'm seeking general advice on how to use and invest my HSA contributions. What are some good mutual funds, money market, and ETFs to put my HSA contributions in with TD Ameritrade?
I recently moved from HSA Bank to Lively to avoid the monthly investment account fees, but I used the SPDR Total Bond Index fund (SPAB) in both places. Lively has the same TD Ameritrade platform, so the transfer was in-kind and completely seamless aside from needing a different account name/number.
I've considered moving to Lively as well. Inertia has kept me with HSA Bank so far, plus I wanted to see if the Lively customers were still happy after a year or so.
Topic Author
sixtoeight
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Re: HSA Bank and TD Ameritrade

Post by sixtoeight »

Philliesfan wrote: Wed Feb 27, 2019 2:14 pm
Darth Xanadu wrote: Tue Feb 26, 2019 4:37 pm I have not done exhaustive research, but I use SPTM (SPDR Portfolio Total Stock Market ETF). Expense ratio is 0.03% and it a commission-free ETF on TD Ameritrade.

I don't keep much cash within TDA (there was a recent thread about this, however; I think folks were suggesting PCOXX as a place to put cash?).

I keep the minimum cash balance required at HSA bank to avoid monthly fees as part of my plan for two reasons: avoid the monthly charge (even though it is less than $2/month) and because this is also equivalent to my family deductible for the year. I sleep better knowing I can grab that cash at any moment. It's possible that if my balance grows over time, I will forgo the cash holding altogether, but for now it works for me.
I use this same exact position and strategy. I have all of my funds invested with SPTM.
Great advice. I will probably will do the same. How would you go about using the HSA funds? Do you just pay out of pocket for as long as you can and then use your accumulated HSA funds way in the future?
FoolMeOnce
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Re: HSA Bank and TD Ameritrade

Post by FoolMeOnce »

Here's the recent thread on TD Ameritrade money market funds referenced above:

viewtopic.php?f=1&t=269305
skylar
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Re: HSA Bank and TD Ameritrade

Post by skylar »

birdog wrote: Thu Feb 28, 2019 10:01 am
skylar wrote: Wed Feb 27, 2019 9:01 pm
sixtoeight wrote: Tue Feb 26, 2019 4:29 pm I'm new to the HSA. I signed up to the GEHA HSA plan through my employer back in December. I'm contributing the $3,500 individual max into my HSA account this year and have signed up with TD Ameritrade, the brokerage firm linked with HSA Bank. For people who have used HSA Bank and TD Ameritrade, I'm seeking general advice on how to use and invest my HSA contributions. What are some good mutual funds, money market, and ETFs to put my HSA contributions in with TD Ameritrade?
I recently moved from HSA Bank to Lively to avoid the monthly investment account fees, but I used the SPDR Total Bond Index fund (SPAB) in both places. Lively has the same TD Ameritrade platform, so the transfer was in-kind and completely seamless aside from needing a different account name/number.
I've considered moving to Lively as well. Inertia has kept me with HSA Bank so far, plus I wanted to see if the Lively customers were still happy after a year or so.
I've only been a customer for about a month, but I'm happier with them than HSA Bank. Their transfer process is completely online (including electronic signature), and I make regular transfers from my employer-provided HealthEquity account. With HSA Bank I had to mail a form, wait a few weeks, and deal with occasional problems. With Lively, I enter the transfer information online, and they fax the transfer request the next day. The two transfers I've made so far (one from HSA Bank, one from Health Equity) both completed within ~10 days, and I get notified of problems promptly by email.
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Darth Xanadu
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Re: HSA Bank and TD Ameritrade

Post by Darth Xanadu »

sixtoeight wrote: Thu Feb 28, 2019 11:05 am
Philliesfan wrote: Wed Feb 27, 2019 2:14 pm
Darth Xanadu wrote: Tue Feb 26, 2019 4:37 pm I have not done exhaustive research, but I use SPTM (SPDR Portfolio Total Stock Market ETF). Expense ratio is 0.03% and it a commission-free ETF on TD Ameritrade.

I don't keep much cash within TDA (there was a recent thread about this, however; I think folks were suggesting PCOXX as a place to put cash?).

I keep the minimum cash balance required at HSA bank to avoid monthly fees as part of my plan for two reasons: avoid the monthly charge (even though it is less than $2/month) and because this is also equivalent to my family deductible for the year. I sleep better knowing I can grab that cash at any moment. It's possible that if my balance grows over time, I will forgo the cash holding altogether, but for now it works for me.
I use this same exact position and strategy. I have all of my funds invested with SPTM.
Great advice. I will probably will do the same. How would you go about using the HSA funds? Do you just pay out of pocket for as long as you can and then use your accumulated HSA funds way in the future?
I pay out of pocket for all health care costs. I don't save receipts, per se, but I do keep my final EOB from each year and my downloaded credit card transactions for each year so that I can withdraw funds if needed (my limited understanding is that this may not completely satisfy IRS requirements, so to be safe you'd want complete documentation). My plan is to build my account, then use for qualified medical expenses incurred at some point in the future.
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