How to Invest in an HSA (Health Savings Account)

[@rob_berger]

HSA = Health Savings Account. Don't ask me why I called it a Health Spending Account. Brain fart!

[@ljrockstar69]

Can HSA be used for cosmetic surgery/ treatments such as Botox or laser resurfacing. I feel this is medical related and the receipt will come from a clinic or hospital .

[@davidrogers0717]

Good point about keeping receipts if you are not using for current health care expenses. I let the cash balance build to equal my annual out-of-pocket before insurance pays 100%. That's about $11,000. After that I invest the rest and plan to use in retirement and possible LTC.

[@shosansah4629]

Another great video from Rob! Just realized i can save receipts and claim later. Thank you Rob!

[@joevelasquez2757]

Wow! Rob love the Q&A short videos.

[@markmorris2517]

As always thanks for another good video, Rob! Haven't seen content on how to invest an HSA before and this is great food for thought.

[@OnCashFlow]

I'm going to max out the HSA for as long as I have access to it, I see it as on par with a Roth IRA.

[@fredswartley9778]

I'm currently investing in an HSA to lower my tax liability since I am self employed. But I like the idea of investing the money and then using it for retirement expenses.

[@SGyru]

I just started my HSA last year. Great video and thanks again for everything you do Rob!

[@jarrod499]

One thing I always point out when HSAs come up is that state tax treatment differs. My home state California doesn’t recognize them so part of having a HSA is manual bookkeeping of cost basis (since no provider does this for you). You also need to specify state adjustments to income to undo the federal deductions and to declare dividends as they occur

[@rob_berger]

Good point!

[@wandaespana2577]

NJ, CA, and AL

[@johnhenderson7081]

Decided to go with the HSA with open enrollment. It started July 1st and will give me at least 2 years before I retire. Will be transferring funds from Health Equity to my Fidelity HSA once my $2k minimum balance is there. My employer will start a family off with $2k in their HSA which is nice for the minium.

[@Direct.injection212]

Left Lively for Fidelity. So far going great and was ready to transition

[@jcman240]

Bought all Tesla several years back in my HSA, was a good decision

[@ph5915]

I've been invested in my Fidelity HSA for years, the bulk is in the S&P 500 index fund, because that pays dividends (re-invested) quarterly. One must be in a high-deductable medical plan to have an HSA (most of us in the US corporate world have been for a while). You must have income in the year you add to the HSA (not sure yet if it's earned/wages or ordinary income will do) and you can't contribute after age 65/Medicare, I believe I read somewhere?

[@lb253]

You don't have to wait until you leave your company to move your HSA dollars. If your company allows, and my Company does, you open an HSA brokerage account at Fidelity and do a direct transfer. Then you have unlimited options.

[@SKITTLELA]

I'm planning on doing this. The only downside is my employer's option charges a flat $5/month regardless. Also not sure if they'll have the minimum cash requirement (if so, it wouldn't be worth it for me.)

[@Journey2Destinations]

@@SKITTLELA I think Fidelity HSA is pretty much free. No min. balance required afaik.

[@SKITTLELA]

@@Journey2Destinations Sorry, I should've said I hope my employer's HSA provider doesn't have a minimum balance requirement for transfers (meaning I could move 100% over to a third-party plan.) Yeah, Fidelity HSA looks really appealing.

[@Journey2Destinations]

@@SKITTLELA I’ve never seen a balance transfer minimum (and I’ve used 3-4 HSA administrators through my employer). Make sure you do a trustee-to-trustee transfer (when they send the check to Fidelity directly) so you don’t have to worry about any tax implications.

[@jauntily]

Yes, that's what I have been doing. The default HSA custodian charges investment fees by the month and allows only for balances over $500 to be invested. And the investment options are poor. So every couple of months I request a partial transfer of assets into a 2nd HSA at Fidelity. Rob seems to say that you can't have more than one HSA account. You can have more than one HSA account but you are still under the annual contribution limits. And another point is that at age 65 you can start using the HSA balance for anything, not just medical related items. It's like an IRA at that point.

[@RetrieverTrainingAlone]

Lively does have an annual fee of $24 or a minimum $3000 cash account in order to invest with LIvely's Schwab HSA account portfolio.

[@DanABA]

Yeah, that change came after this video was published, I believe. Bummer.

[@induprabhu10607]

Video about California HSA, please ...and how to invest for tax deferral?

[@mdsloads]

Rob, I just moved my hsa to fidelity as I wanted to invest it. However in these times I very concerned about the markets and need a secure investment. Was thinking i bonds. My question is how do I go about funding the i bond from my fidelity.

[@scottwillis2812]

Great video Rob glad I found it. Question: I have about 20,000 in my HSA should I invest the entire amount in a fidelity index fund? TIA

[@derrickstewart5027]

Excellent information. Thank you!

[@derrickstewart5027]

Currently considering my strategy for investing and one day using this money

[@polymath5119]

Rob, when you consider paying Medicare premiums from your HSA in the future, are you purposely giving up the premium-increase protection you could have when paying the premiums via deductions from your Social Security benefit payments? Or are you thinking of paying the premiums out of your HSA until you claim Social Security benefits at a later date, e.g., age 70, and then having them deducted?

[@kangre63]

Thank you so much Rob. This was very helpful.

[@redswiretowire1499]

@Rob Berger What are the mechanics of moving your HSA to fidelity? Is it like setting up a rollover IRA?

[@RK-kj8di]

I rechecked my company's benefits intranet site and I can only specify the amount (up to the max amount), but not how I want the funds invested. At 7:55 you mentioned investing in low cost index funds, or other funds. I do not have the option to specify what type of fund.

[@rob_berger]

Interesting. I've never seen that before. I've had HSAs at about 4 or 5 different institutions, and there were always low-cost investment options.

[@huiyuanli4856]

You typically don't make the selection in your company's intranet, but on the HSA provider's (healthequity, fidelity, etc.) Website

[@miriamfrey3696]

excellent review. Post retirement some HSA plans will allow you to stay but charge $5 permonth. so for long term much better to move. in my case to fidelity. is it also a way for covering Health spending!

[@rontina8686]

Rob, If you were not eligible for HSA until after retirement in your late 50s. What do you do? Not much information out there on that. Do you or can you just make one time only transfer from Traditional IRA to start an HSA and that it? Is that really worth it if your just doing it one time? (Hope you or someone with an answer read this)

[@KA-NV]

I just transfer my HSA to Fidelity. What do you think are the ETFs or mutual funds more recommended to invest in?

[@sondramoritz182]

I wonder how is best to save receipts since they fade so quickly. Do you recommend digital storage or photocopies. Would a credit card statement or cancelled check suffice, or should I be sure to keep the physical receipt? Thank you for all your videos!! Super helpful.

[@so.many.obstacles]

You need the actual receipt to show what the expense was. Take a picture of the receipt and save it.

[@johnhenderson7081]

I am 61 years old and planning on retiring by 65. My wife and I are in good health at the present time. Wondering if this is a good idea to start an HSA now or would you suggest to just continue with our basic insurance? Over the next 3 years I can contribute over $24k.

[@scott1441]

Very informative as usual - two questions - can I instruct my Medicare supplement provider to take premiums from my HSA account rather than deducting from SS - second question re LIVELY , can I transfer funds from my existing HSA account, who requires at least 2,000 in cash before investing - thanks Rob

[@rob_berger]

As I mentioned in the video, Medicare supplemental insurance (e.g., Medigap) is not a Qualified Medical expense. Other Medicare premiums are. See the IRS resource below the video for more info.

[@ag4allgood]

@@rob_berger I retired with an HSA & have Supplemental insurance. Really think the IRS is WRONG in not allowing Supplemental insurance premiums to come out of your HSA. Its your part of your health insurance.

[@ltmsimply]

Hi Rob been investing in our HSA since 2013 currently we gained over 60%. My spouse would like to take some of the gains and pay for her orthodontics and I can’t convince her to pay out of pocket! Should I see this one time only as a brokerage account and making one time trading option ? Thanks for what you do. Blessings LT

[@rob_berger]

The key concept in any marriage that lasts--compromise!

[@KrikitKaos]

I am confused. In my world an HSA is an account that contains a fixed amount offered by my employer, and if I don't submit an expense claim for a health related expense, that amount expires and the same new amount is offered the next year. It doesn't accumulate and there is no opportunity for investments. Can I have a private HSA? Edit: Oh. The problem might be that I am Canadian.

[@rob_berger]

Money in an HSA doesn't expire, in contrast to a Flexible Spending Account, in which it does.

[@KrikitKaos]

@@rob_berger Ya, I think this is because I'm Canadian. With public healthcare I guess the motivation for this type of registered account is much lower and it doesn't exist here.

[@WilliamLyons5]

This is a flexible healthcare spending amount, which differs from an HSA

[@BornAgainBride]

Hiw does one become eligible for HSA? Income limits? What if we have commercial health insurance??

[@rob_berger]

You have to have High Deductible Health Plan. Plans should indicated whether they are HSA eligible.

[@BornAgainBride]

@@rob_berger TY!

[@MrRobertMacknaw]

Can you open HSA if your employer doesn't offer it?

[@bribradt3450]

Yes

[@autobotdiva9268]

Although will get a insurance voucher upon retirement it doesnt cover meds. HSA is now open👍

[@floridaflash9573]

All in VBR

[@rob_berger]

Excellent option for an HSA or Roth.