Ever since 2019, I've had an HSA with HSA Bank (my insurance provider is GEHA HDHP).
My own personal preference has always been to have ~$6k in cash equivalents and the rest invested. For a while, this was easy to do as HSA Bank briefly allowed funds to be held in a brokerage HSA account, first administered by TD America, then subsequently at Schwab when it purchased the brokerage operations of TD. HSA Bank provides an ATM for the purpose of drawing funds held at my HSA checking account, while brokerage investment was handled at Schwab. A bit clunky, but overall, things worked.
For quite a while now, no new fund is allowed into Schwab, as HSA Bank set up its own brokerage service called HSA Invest, but the offerings are woefully lacking. While I could still invest in some Schwab equity index funds, there is no money market options available, which means that I lose out on ~$200 of interest each year, money that I could have received had it been placed in a money market.
A bit fed up with the shenanigans at HSA bank, I opened a new HSA brokerage account at Fidelity, hoping to transfer asset in my Schwab HSA brokerage account into the corresponding one at Fidelity. A helpful forumite informed me that apparently Fidelity will issue me a debit card as well.
So here are my questions, from immediate to down the road.
1) Would IRS object to me having two different HSA accounts? I assume no, but would like to confirm.
2) How exactly does the debit card associated with Fidelity HSA work? I'd assume that I would need to have funds in sweep or alternatively invested in money market to work? It's somewhat of a new concept, as my Schwab HSA was brokerage only (can't be used to pay healthcare bills, to the best of my knowledge), and payments were separately made from the HSA checking account at HSA Bank.
3) I read in the general long-running thread on HSA Invest that some government employees (appear to work for a defense agency) have been able to have contributions (both self-funded and agency-funded) to be directed deposited to a HSA that isn't provided by HSA Bank. Has any non-DOD FERS civilian employees (say ones utilizing NFC) been able to do the same?
Many thanks in advance
My own personal preference has always been to have ~$6k in cash equivalents and the rest invested. For a while, this was easy to do as HSA Bank briefly allowed funds to be held in a brokerage HSA account, first administered by TD America, then subsequently at Schwab when it purchased the brokerage operations of TD. HSA Bank provides an ATM for the purpose of drawing funds held at my HSA checking account, while brokerage investment was handled at Schwab. A bit clunky, but overall, things worked.
For quite a while now, no new fund is allowed into Schwab, as HSA Bank set up its own brokerage service called HSA Invest, but the offerings are woefully lacking. While I could still invest in some Schwab equity index funds, there is no money market options available, which means that I lose out on ~$200 of interest each year, money that I could have received had it been placed in a money market.
A bit fed up with the shenanigans at HSA bank, I opened a new HSA brokerage account at Fidelity, hoping to transfer asset in my Schwab HSA brokerage account into the corresponding one at Fidelity. A helpful forumite informed me that apparently Fidelity will issue me a debit card as well.
So here are my questions, from immediate to down the road.
1) Would IRS object to me having two different HSA accounts? I assume no, but would like to confirm.
2) How exactly does the debit card associated with Fidelity HSA work? I'd assume that I would need to have funds in sweep or alternatively invested in money market to work? It's somewhat of a new concept, as my Schwab HSA was brokerage only (can't be used to pay healthcare bills, to the best of my knowledge), and payments were separately made from the HSA checking account at HSA Bank.
3) I read in the general long-running thread on HSA Invest that some government employees (appear to work for a defense agency) have been able to have contributions (both self-funded and agency-funded) to be directed deposited to a HSA that isn't provided by HSA Bank. Has any non-DOD FERS civilian employees (say ones utilizing NFC) been able to do the same?
Many thanks in advance
Statistics: Posted by InvisibleAerobar — Sat Jan 04, 2025 1:18 pm — Replies 1 — Views 69