Early Experience with Schwab HSA?

[Montecfo]

I hold my HSA with TD Ameritrade and HSA Bank.

As part of the Schwab TDA merger my account will soon transition to Schwab.

Has anyone already done this might have an impression of the HSA experience at Schwab?

Also as I write this I am realizing my account at HSA Bank will likely be orphaned.

I know the Fidelity HSA has gotten good reviews. Perhaps I should move there instead.

Mainly looking for Schwab HSA experiences. I have extensive knowledge of Schwab otherwise.

 

[ER2B]

I’m currently taking a distribution right now from my Schwab HSA investment account. It took two days for Schwab to settle after I sold the shares. Another four days for my HSA account to clear the funds from Schwab before I can request to have the funds transferred to my linked bank account. I don’t have a Schwab account other than the HSA. I like the Schwab website but not happy with the waiting time.

 

[Kings over Queens]

My only experience with Schwab has been through my brokerage and ira rollover accounts being switched there from TD. It seems to me that their clearing times are longer than when with TD.

I just opened 2 new roth accounts with them and it was about as painless as possible, and funding through transfers from my brokerage accounts was easy.

I didn't know they did HSA accounts.

I just switch that (HSA) from Health Equity to Fidelity. The funds transfer is going on about a week. Opening the account was very easy.

 

[gauss]

A decade or so ago, it was tough to find an HSA that offered a full brokerage account. I finally found one offered by someone called Select Account (I believe) who was later renamed Further. You could keep your $ in a bank or money market account at Select Account directly. You could also invest in some of their hand picked mutual funds via a second party called Denvair or something like that. You could also open a Charles Schwab HSA brokerage account.

The problem with this as that any contributions had to go through the fully chain from Select Account to Denvair to Schwab. Of course I had to to this manually after waiting a few days each step for the funds to clear. I thought that the HSA regulations imposed this rather archaic structure.

Now when Fidelity began offering HSA accounts, I thought it would be something similar. I was so wrong on this (pleasantly). The Fidelity HSA behaves very similar to one of their IRA accounts or after-tax brokerage accounts.

I never had any real problem with the Schwab portion other than the structure described above.

I am not sure how your current setup works, but I now recommend Fidelity for HSA's for anyone who wants a brokerage account and simplicity.

ERB2B's experience above sounds strangely familiar.

-gauss

 

[gauss]

My only experience with Schwab....
I didn't know they did HSA accounts.

.

I suspect that they don't do retail HSA accounts (unless something has changed in the past decade), but rather rely on partner HSA firms as I described above.

Confirmed: "Your Health Savings Account provider must offer a brokerage option as part of your HSA, in order for you to open an account." From the Schwab HSA page.

-gauss

 

[teej1985]

Schwab simply took over the TDA HSA's. TDA didn't have retail HSAs either.

 

[Montecfo]

Schwab just started doing HSA after taking over TDA.

I think every aspect of my experience with TDA was better.

 

[ER2B]

Yes, TDA was much better handling the investment side of this HSA. I don't recall waiting several days to get my money. My plan is to drain my HSA. I just learned that Medicare Part B premiums (not supplements, medigaps or advantage) are medical expenses. Well now at least I know the process.

 

[Mulligan]

Schwab simply took over the TDA HSA's. TDA didn't have retail HSAs either.

That is correct. Some may have forgotten they have an entity that actually is the true HSA designee and they then allow brokerage transactions to flow to a brokerage. For me, my HSA is through HSA Bank and the funds were then funneled into TD. But they were transferred to Schwab from TD about a month ago.
I trade out of my HSA quite often including out of the new Schwab account. But it has been so many years since I have even opened up my HSA Bank account I forget if I ever needed any money it would have to funneled back into HSA Bank before I could access it.