HSA Investing— Getting started

Learn how you can use your HSA to save for retirement, what an investment threshold is, investing fees and purchasing mutual funds

Updated over a week ago

You can use your HSA to invest your money for your retirement. Read on to find out specific details on investing your HSA, or jump to a section with these links:

Using HSAs to save for retirement

Unlike other account types, an HSA lets you invest money to build the ultimate retirement nest egg.

  • Invest your money just like a 401(k)

  • Access liquid funds anytime

  • Enjoy lower fees and transparent pricing

  • Take advantage of powerful advisory tools offered by HealthEquity Advisors, LLC.

You can accelerate your health savings and take the guesswork out of investing. Log into your account and a helpful step-by-step tutorial will walk you through the process.

Investment threshold

Your plan may include a minimum threshold to start investing. When your HSA cash balance exceeds that threshold, you can purchase investments with any funds over the threshold amount. Visit the Investments section of your HealthEquity online account to confirm your plan’s threshold or contact member services for assistance.

Investing fees

HealthEquity charges a monthly investment administration fee to invest. To find the amount of this fee in the HealthEquity online account, check the monthly investing fee box on the Investment dashboard.

Each mutual fund charges fees, referred to as the operating expense ratio (OER). To locate this fee, click on the information icon next to the mutual fund’s ticker symbol. HealthEquity has no control or influence over the OER. This fee is not collected by HealthEquity, but is charged by the fund itself.

HealthEquity has no trading fees, no short-term redemption fees and no commissions or fund minimums.

Advisor™ (powered by HealthEquity Advisors, LLC)

When available on an HSA product, HealthEquity Advisors, LLC offers the optional subscription-based Advisor™ tool for a monthly fee. The subscription fee, when paid by the member, is based on service level:

  • The fee for both Advisor AutoPilot and GPS is now 0.05% per month on the average daily invested balance ( .60% annually). This fee is capped at a maximum of $15.00 per month.

Investor Choice fund options include a monthly investment administration fee, in addition to the expense ratio charged by the mutual fund. This fee is compensation for administrative and record-keeping services provided by HealthEquity and its affiliates, including:

  • Maintaining a trading platform

  • Executing trades through a broker-dealer (Charles Schwab & Co.)

  • Reconciling trades nightly

  • Accounting and record-keeping

  • Engaging fiduciary service providers

  • Preparing monthly statements

  • Providing custodial agreements

Investments available to HSA holders are subject to risk, including the possible loss of the principal invested and are not FDIC or NCUA insured, or guaranteed by HealthEquity, Inc. HealthEquity, Inc. does not provide investment advice. HealthEquity Advisors, LLC™, a wholly owned subsidiary of HealthEquity, Inc. and an SEC-registered investment adviser, does provide web-based investment advice to HSA holders that subscribe for its services (minimum thresholds and additional fees apply). HealthEquity Advisors, LLC also selects the mutual funds offered to HSA holders through the HealthEquity, Inc. platform. Investing through the HealthEquity investment platform is subject to the terms and conditions of the Health Savings Account Custodial Agreement and any applicable investment supplement. Registration does not imply endorsement by any state or agency and does not imply a level of skill, education, or training. HSA holders making investments should review the applicable fund’s prospectus. Investment options and thresholds may vary and are subject to change. Consult your advisor or the IRS with any questions regarding investments or on filing your tax return.

Purchasing mutual funds with my HSA

Below are steps to buy mutual funds shares with your health savings account (HSA). You must add mutual funds to your portfolio before you can purchase shares of those funds. Learn how to set investment targets for your funds here.

  1. Log into your HealthEquity online account­.

  2. On your home screen, click the HSA tab on the left side.­

  3. Find the HSA Investment card, and select Manage HSA Investments

  4. Select the Trade tab.

  5. To split the purchase between mutual funds using your target holdings:

    • Locate the box titled Buy using my target % allocation.

    • Enter the amount you wish to buy in the Amount to buy box.

    • Click Review Buy fund at the bottom of the screen.

    • Confirm your trades on the next screen and click Submit Trades.

  6. To purchase specific funds using manually entered amounts:

    • Locate the box titled Trade.

    • Click View Available Trades.

    • Select Buy from the drop-down menu to the right of each fund you are purchasing and enter a dollar amount in the box next to the drop-down menu.

  7. Click Review Trades at the bottom of the screen.

  8. Confirm your trades on the next screen and click Submit Trades.

The day the order is executed is dependent on the type of trade and when the order is received.

Investments are subject to risk, including the possible loss of the principal invested, and are not FDIC or NCUA insured, or guaranteed by HealthEquity, Inc. Investing through the HealthEquity investment platform is subject to the terms and conditions of the Health Savings Account Custodial Agreement and any applicable investment supplement. Investing may not be suitable for everyone and before making any investments, review the fund’s prospectus

Did this answer your question?