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 links¹:
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.
Opening a HealthEquity investment account
Log in to the HealthEquity app and tap the Investments icon.
Select the Start Investing button, then select the Get Started! button.
Select the I’ll Manage My Own Investments button or the Get started with Advisor button.
Members electing to subscribe to Advisor, a web-based guidance tool powered by HealthEquity Advisors, LLC, will complete their onboarding on the Advisor portal. After selecting your service level, completing a brief risk profile, and review disclosures and applicable agreements, simply choose the Accept and Save button to complete your account opening.
Members electing to manage their own investments will select the amount of cash to maintain in their HSA, portfolio allocation targets, review disclosures, and complete the account opening by choosing the Accept and Save button.
Opening a Schwab HSBA
For members who desire additional flexibility and investment options, HealthEquity offers an optional Schwab Health Savings Brokerage Account (HSBA) powered by Charles Schwab. If your HSA plan is set up under an employer, access to the Schwab HSBA is dependent on whether the employer has elected to allow the Schwab HSBA. To see if your account is eligible for a Schwab HSBA, please access your online account at HealthEquity.com and follow these steps.
Select the Manage Investments link on your homepage.
If your account is eligible for a Schwab HSBA, you will see a section about brokerage account offers. If there is no brokerage account section, your account is not eligible to enroll with the Schwab HSBA.
If available, select the Learn more button within the Brokerage account offering.
Select the Open an account button. You will be transitioned to Charles Schwab.
Complete the electronic online account opening process with Charles Schwab.
During the Schwab electronic account opening process members will be asked to self-identify as a corporate insider or if you are affiliated with a FINRA firm. If you identify as either, further documentation may be requested by Schwab from your employer’s compliance department providing consent and disclosure to open your Schwab HSBA account.
Investment threshold
Your HealthEquity HSA may require a minimum cash balance to be maintained in your HSA cash account when electing to invest a portion of your HSA dollars. If your HSA cash balance falls below this set threshold (by at least $50) the system will automatically create an investment sell transfer. Your HealthEquity investments will be sold proportionately on your fund balances for the amount required to replenish your cash account balance. It may take up to two market days for the funds to be available.
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, you can reference the schedule of fees provided to you when you opened your HealthEquity HSA, or you can check the monthly investing fee box on the Investment dashboard by accessing your HealthEquity online account. 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 (0.60% 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
Purchasing mutual funds with an 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.
Log into your HealthEquity online account.
On your home screen, click the HSA tab on the left side.
Find the HSA Investment card, and select Manage HSA Investments
Select the Trade tab.
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.
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.
Click Review Trades at the bottom of the screen.
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.
¹Investments are subject to risk, including the possible loss of the principal invested and are not FDIC or NCUA insured, or guaranteed by HealthEquity, Inc. HSA holders may select mutual funds for investment through the HealthEquity investment platform but HealthEquity, Inc. does not provide investment advice. HealthEquity Advisors, LLC, a wholly owned subsidiary of HealthEquity, Inc. and an SEC-registered investment adviser, provides web-based investment advice to HSA holders that subscribe for its services (minimum thresholds and additional fees apply). Registration does not imply endorsement by any state or agency and does not imply a level of skill, education, or training. Investing may not be suitable for everyone. You should carefully consider the investment objectives, risks, charges and expenses of any mutual fund before investing. A prospectus and, if available, a summary prospectus containing this and other important information can be obtained by visiting the fund sponsor’s website. Please read the prospectus carefully before investing.
HealthEquity does not provide legal, tax or financial advice.