Using your HSA investment in the future

Minimum balance requirements

You can invest a portion of your HSA when your account exceeds the minimum required balance of $2,000. You can invest funds above that amount, and you must maintain a minimum balance of $2,000 in your HSA at all times. For example, if your HSA account balance is $2,675, you can invest $675. 

What happens if I drop below the minimum?

You can continue to use the money in your HSA, but you can’t transfer any new funds into your HSA investments account until your HSA balance exceeds the required minimum balance again.

Your consent is required to enroll

If you’re eligible to invest your HSA funds and want to enroll in an investment account, you must first agree to our Electronic Consent Agreement and Trade Confirmation Waiver. These agreements govern your investment account with us. 

Timing of transfers 

Transfers entered before 4 p.m. ET on a trading day will be traded the same day and settled/posted on the next trading day. To view pending investment transactions, sign in to your account.

Trading day

A trading day is the time span that a particular stock exchange is open. Trading days never take place on weekends. Several other special circumstances could lead to a shortened trading day or no trading day at all, such as holidays.

To initiate a transfer, sign in to your account and select the option to move funds. 

You can transfer funds from your investment account to your HSA cash account anytime to pay for qualified medical expenses. However, only one transfer (or sell) is allowed per mutual fund per trading day. 

This limit also applies to transfers between different mutual funds. Transfers made before 4 p.m. ET on a trading day will be processed the same day.

If you’re a hands-on investor, this option is for you. Choose from a diverse set of more than 30 mutual funds that average a 4-star Morningstar rating and offer some of the lowest expense ratios in the industry, including:  

• Vanguard funds
• Target date funds
• Lifestyle funds 

When you set up your Optum Bank investment account, you choose which funds you want to invest in. Our asset allocation calculator can help you decide. No minimum initial investment amount is required. Once your account is set up, you can:

• Transfer money between funds and reallocate balances.
• Set up automatic portfolio rebalancing.
• Move money back to your HSA cash account if you need to pay for a qualified medical expense.

Betterment is the largest independent online financial advisor. It combines low-cost, tax-efficient investment strategies with technology and personalized advice to help you achieve your financial goals. 

Based on your investment goals, Betterment recommends a portfolio of low-cost, exchange-traded funds (ETFs), helping you achieve your financial goals. It also helps keep your HSA investments on track through automated deposits and account rebalancing. 

And when you want to use your invested HSA funds, the process is easy:

• Betterment automatically sells the right investments. 
• This lets you access your funds for eligible medical expenses without having to choose which investments to sell. 

Betterment can also provide holistic advice across all your accounts, including combined external accounts like employer-sponsored 401ks. That way, you can easily track your progress and get help maximizing your after-tax retirement income.

You can update your investment options once per trading day.

A trading day is the time span that a particular stock exchange is open. Trading days never take place on weekends. Several other special circumstances could lead to a shortened trading day or no trading day at all, such as holidays. 

Transfers entered before 4 p.m. ET on a trading day will be traded the same day and settled/posted on the next trading day.

No trading fees are charged for investments associated with your HSA. Other fees and expenses applicable to continued investments are described in the current prospectus of each mutual fund.

You can use the information in each fund’s prospectus to help you decide which funds are right for you. The Optum Bank asset allocation calculator can also help you determine what funds to choose. To access the calculator, you must first sign in to your HSA account. 

It’s always important to discuss investing your HSA with your financial planner. Your financial advisor will also be able to provide you with information on how much is right for you to keep in your cash account and how much to place in investments.

A registered investment advisor (RIA) has chosen the fund selection used by Optum Bank. The selected funds span the risk spectrum from conservative to aggressive. Funds are reviewed quarterly and adjustments are made based on investment policy criteria. 

Professional management fees are also considered and the fees for the selected funds typically rank average or below average within their fund group.

You can’t pay directly for medical expenses from your investment account. If you need to use your invested funds for qualified medical expenses, you must first transfer them back into your HSA cash account.