HSA Advice

[dsp0725]

I currently don't have an HSA set up but I would like to. My colleagues suggested I go with Health Savings Administrators ( https://healthsavings.com/ ) While another person suggested Saturna.

Since I just need a basic HSA, does anyone have a company they suggest going with?

Thanks

 

[RunningBum]

IIRC Saturna is a little lower cost. You might also be able to find a credit union that will do it for zero fees. I've done that with the CU I already belonged to, and might move it now that it's built up over a few years since I'm only getting something like 1.5-2% guaranteed right now.

 

[2017ish]

...
Since I just need a basic HSA, does anyone have a company they suggest going with?

Thanks

Do you intend to use the HSA funds for medical spending, or stockpile/invest them for use in the future? The answer will likely differ....

 

[dsp0725]

Do you intend to use the HSA funds for medical spending, or stockpile/invest them for use in the future? The answer will likely differ....

a little bit of medical funds.... but not a ton each year.

 

[Mulligan]

From a forum member here I signed up with HSA Bank and it links to TD Ameritrade for investing. Found some interesting stats on HSA use.... $37 billion is in HSA accounts mostly in cash. Only $5.5 billion invested in anyway. Another research report had only 3% of HSA money being invested. Most people simply use HSA's as churn accounts to pass through for tax break them use immediately for medical needs. 30% stated they use it all each year.

 

[Islandtraveler]

Check out SelectAccount. Many options with low and no cost. I did my homework on this and this is the company that I went with.

https://www.selectaccount.com/

 

[exnavynuke]

From a forum member here I signed up with HSA Bank and it links to TD Ameritrade for investing. Found some interesting stats on HSA use.... $37 billion is in HSA accounts mostly in cash. Only $5.5 billion invested in anyway. Another research report had only 3% of HSA money being invested. Most people simply use HSA's as churn accounts to pass through for tax break them use immediately for medical needs. 30% stated they use it all each year.

HSA Bank is who my company chose for the company plan so that's who I'm with. I keep ~90% of my balance invested through TD Ameritrade which is very convenient for me since I have other accounts through them as well.

 

[mpeirce]

From a forum member here I signed up with HSA Bank and it links to TD Ameritrade for investing. Found some interesting stats on HSA use.... $37 billion is in HSA accounts mostly in cash. Only $5.5 billion invested in anyway. Another research report had only 3% of HSA money being invested. Most people simply use HSA's as churn accounts to pass through for tax break them use immediately for medical needs. 30% stated they use it all each year.

That's not really surprising since they's how they are generally promoted. From the treasury:

Health Savings Accounts (HSAs) were created in 2003 so that individuals covered by high-deductible health plans could receive tax-preferred treatment of money saved for medical expenses.​

We have an HSA through Anthem and it's basically a savings account with a link to an investment account. You have to keep a minimum amount in savings and the rest can be transferred to the investment account. Luckily, the investment account offers an Vanguard index fund as an option.

We've built up quite bit in the investment side, but that's only because our CPA enlightened up a few years back on how an HSA can be used as a super IRA. Mostly people don't know about this.

Other people don't even have the option. I know one family that always maxes out their deductible and empties their HSA every year to pay expenses. They're not going to be investing inside their HSA.

 

[easysurfer]

I currently don't have an HSA set up but I would like to. My colleagues suggested I go with Health Savings Administrators ( https://healthsavings.com/ ) While another person suggested Saturna.

Since I just need a basic HSA, does anyone have a company they suggest going with?

Thanks

Several folks here, myself included, have an HSA with Health Savings Administrators.

The big advantage with them is if you like to invest in Vanguard funds, they have a good selection to choose from. Plus, you don't need a minimum balance in a debit account before investing (I chose to not even use a debit account and just pay qualified medical expenses with my regular credit card, checking account then reimburse myself through the HSA).

The negative with them is navigating around their website and statements are not too easy to understand.

 

[Luck_Club]

do you need to have a high deductible health plan? My wife provides insurance through her employer. My (self employed) company doesn't have a health insurance plan. Could I set one up, for just non covered stuff like weight loss, etc? I'm also thinking a few years from now it would be nice to have a pool of money from which to buy health insurance.

 

[2017ish]

Luck_Club,

A qualified "high deductible health plan" is a legal requirement to fund an HSA. Once you have the HSA in place, in future years, you can use it to fund qualifying out-of-pocket costs under non-HDHP plans.

E.T.A.: Here is one overview: https://www.zanebenefits.com/blog/bid/266885/faq-what-is-an-hsa-high-deductible-health-plan-hdhp

 

[eastnortheast]

.......... I know one family that always maxes out their deductible and empties their HSA every year to pay expenses. They're not going to be investing inside their HSA.

That is us. LOL With five kids, there always seems to be something(s) medical/dental throughout the year that results in the HSA never building up much.

 

[RunningBum]

That is us. LOL With five kids, there always seems to be something(s) medical/dental throughout the year that results in the HSA never building up much.

The idea many of us use is to pay those bills out of pocket, and let the HSA grow tax free. You can withdraw from the HSA many years later, using those past expenses to make the withdrawals tax-free.

It's not a total no-brainer. First, you have to be able to afford to pay out of pocket, and second, you need to put the HSA somewhere you have good investment choices with low fees. Tax free isn't so great with low returns or admin fees eating into it, but this thread does show places where you can avoid this.

 

[eastnortheast]

The idea many of us use is to pay those bills out of pocket, and let the HSA grow tax free. You can withdraw from the HSA many years later, using those past expenses to make the withdrawals tax-free.

It's not a total no-brainer. First, you have to be able to afford to pay out of pocket, and second, you need to put the HSA somewhere you have good investment choices with low fees. Tax free isn't so great with low returns or admin fees eating into it, but this thread does show places where you can avoid this.

Good information here. Much appreciated.

The HSA I have it through work and the investment choice is basically a savings account. No real growth advantage. So, at least for the time being, i will continue with the status quo.

[-]If[/-]When I retire, i will have to look at other options in the HSA market.

 

[zinger1457]

The HSA I have it through work and the investment choice is basically a savings account. No real growth advantage. So, at least for the time being, i will continue with the status quo.

[-]If[/-]When I retire, i will have to look at other options in the HSA market.

I don't believe there's anything stopping you from opening up a separate HSA account different from what your employer uses. You would probably need to keep the HSA account associated with your employer open if they make contributions to it but you would be able to transfer any funds in that account to another HSA. There are much better choices out there if your current HSA only offers a savings account option.

 

[Scuba]

My understanding is you cannot set up an HSA unless you have a health insurance policy that "qualifies." DH and I have a high deductible plan, but unfortunately it is not HSA-qualified so we haven't been able to set up an HSA. If anyone knows a way we could do this without changing our healthcare plans, please advise. We don't want to change our healthcare plan because it is a "grandfathered" pre-ACA plan that provides a great PPO network. Many docs in Southern CA do not accept Covered CA so we want to avoid that.

 

[travelover]

My understanding is you cannot set up an HSA unless you have a health insurance policy that "qualifies." ..........

I think that is correct. The qualifications are clearly spelled out. https://www.irs.gov/pub/irs-drop/rp-16-28.pdf

 

[LiveBelowMeans]

I use Optum for my HSA. Money is invested in a Vanguard fund. I have never taken a penny out of the account. Now sitting on a 6 figure account growing totally tax free. JMHO

 

[Fedup]

From a forum member here I signed up with HSA Bank and it links to TD Ameritrade for investing. Found some interesting stats on HSA use.... $37 billion is in HSA accounts mostly in cash. Only $5.5 billion invested in anyway. Another research report had only 3% of HSA money being invested. Most people simply use HSA's as churn accounts to pass through for tax break them use immediately for medical needs. 30% stated they use it all each year.

I had mine sitting at a credit union for years earning less than 1%. I just finally transferred this small account to HSA bank that is linked to TDAmeritrade.

 

[eastnortheast]

I don't believe there's anything stopping you from opening up a separate HSA account different from what your employer uses. You would probably need to keep the HSA account associated with your employer open if they make contributions to it but you would be able to transfer any funds in that account to another HSA. There are much better choices out there if your current HSA only offers a savings account option.

Thank you. I did not realize this.

Coincidentially, just received correspondence from the HSA administrator that they are going to be revamping the account, "including more investment options". It will be interesting to see what they offer.

 

[dsp0725]

Need to decide today.

Looks like it's between SelectAccount, health savings administrators, Saturna, or Optum.

What is best for me??

 

[xdafly]

Based on several Bogleheads forum discussions, have a plan in place to use up the funds as leaving it for a beneficiary other than spouse is detrimental to their tax plan

 

[dsp0725]

Based on several Bogleheads forum discussions, have a plan in place to use up the funds as leaving it for a beneficiary other than spouse is detrimental to their tax plan

Thanks. I'm 32 years old. Just trying to build the nest egg, invest, and keep tax liability down.

 

[Willers]

I use HSA Authority. Low fees (flat $39/year), good selection of Vanguard and non-Vanguard funds. So far no issues, but working with them is like banking circa 1980. Once you get past that it is easy peasy.

Sent from my SM-T810 using Early Retirement Forum mobile app

 

[MichaelB]

Based on several Bogleheads forum discussions, have a plan in place to use up the funds as leaving it for a beneficiary other than spouse is detrimental to their tax plan

It may not be tax efficient, but inherited money is usually not detrimental to the fortunate recipient. My plan is to keep our HSA accounts intact and untouched as long as possible, and if we suddenly find ourselves no longer amongst the breathing, our heirs will get an unexpected gift.

Most people are not in a position to determine when to use the HSA, until it is too late.