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Financial Planning / Tax Strategies


Subject:  Re: Work Offering HSA Date:  10/17/2012  11:34 PM
Author:  MakingTrax Number:  116811 of 127528

You may have to shop around to look for a bank/investment company that meets your intended invesetment needs and activity levels. If you intend to use your HSA as more of a short-term "pass through" account (e.g., similar to an FSA, where $ goes in and then is routinely pulled), you may not need anything more than a savings account (with debit card or check writing priveleges).

Because I hope to not tap into my funds for a while, I specifically shopped for a bank/investment company that provided self-directed brokerage options. I ended up chosing Bancorp. As I mentioned previously, fees for investing (with Bancorp, anyway) seem steep: $26 per buy/sell trade, and it looks like there are fees for inactivity (at least one trade required per year otherwise $25 fee), and also a fee if your brokerage balance falls below a minimum amount. I don't believe any of those fees are applicable if you simply keep everything in the regular savings account. With good planning, the fees can be minimized.

I don't see any reason why one could not open up a 2nd HSA account (as foolbar suggests) to deposit additional funds to reach the limit cap (not otherwise funded by employer).

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