Have an Optum HSA through employer and have the ability to invest the amount over 2k threshold in Betterment or Optum’s mutual funds. Am trying to figure out where to invest the money and am reading that I should open a Fidelity HSA because there’s less fees. For transferring $ from Optum HSA manually, it sounds like I once a year transfer everything according to these steps? The way I understand it, my employer will only contribute to the Optum HSA they’ve set up, so I believe I’d need to..
https://thefinancebuff.com/how-to-rollover-an-hsa-on-your-own-and-avoid-trustee-transfer-fee.html
Pro
Not sure about yours, but most have the $1k cash minimum and anything over you can invest into index funds, etc.
So if yours has a $2k limit then any amount above you can invest in. They may have additional fees, but as you continue to invest you’ll far out grow them. I know mine charges $2.50 a month to the cash account, but no fees for investments other then the .03% index fee surcharge charged by the fund.
Pro
So a transfer works differently, but mine has a cash requirement and anything higher can go into investments. It sounds like you’re talking about a rollover? If you’re moving funds to another fiduciary you’ll want to contact them for the rules to see if you can do in plan or if need account closed to rollover full amount.
*Leave a few dollars in the account to keep it open, right?
Or if I’m misunderstanding this, please let me know!
I’ve had HSAs at both OptumBank and Fidelity. Fees were identical from what I recall.
However, Fidelity (my current HSA provider) has no minimum to invest while Optum’s was $2k. I keep $250 in cash and invest the rest, which is a nice feature.