Health Savings Account Investments. Unlock the growth potential of your HSA funds

Transcription

1 Health Savings Account Investments Unlock the growth potential of your HSA funds

2 HSA INVESTING The Triple Tax Benefits of Your HSA The funds you put in your HSA are subject to three different tax benefits, all of which help you save and grow your wealth. 1. All of the funds you contribute to your HSA are on a pre-tax basis, meaning every dollar you contribute deducts your total IRS-reported income which lowers your taxable income and saves you money. 2. The interest your funds earn while in the HSA are not taxed. 3. You are able to withdraw funds from your account without taxation When you spend HSA funds on qualified medical expenses. 2

3 HSA INVESTING Using Investments to Grow Your HSA Funds One of the major benefits of an HSA is having the ability to invest the funds you contribute, even further growing the value of your HSA funds over time. In addition to having tax-advantaged funds to pay for healthcare, many financial advisors have begun to view HSA investment opportunities as on par, or above, the value gained from contributing to a 401(k). 3

4 HSA INVESTING HSA Investments Made Easy A few key things you need to know as you begin: You need to have a minimum $1,000 balance to start making investments with your HSA funds. You need maintain a monthly average of $3,000 in your HSA available balance or you will incur a $2.50 monthly investment fee. Your investments are self-directed You control which mutual funds your HSA funds will go into (similar to many 401k programs). Devenir is the partner that manages your HSA investment funds. You can manage your investments online: Login to to manage your HSA investments. 4

5 HSA INVESTING Getting Started Now that you understand how investing HSA funds will help you maximize the value of your HSA, it s time to begin! Throughout this guide, we ll highlight 1) investment set-up and 2) tips on how to best maximize the value. 5

6 MY HSA Choose Manage My HSA under the My HSA Tab. Click INVESTMENT 6

7 HSA INVESTMENT SUMMARY 7

8 APPLY FOR AN INVESTMENT ACCOUNT 8

9 TRANFER MONEY TO INVESTMENTS 9

10 TRANFER MONEY TO INVESTMENTS 10

11 VIEW TRADE YOUR INVESTMENTS If you experience issues when you Proceed to Investment Account, and are not using the Chrome browser, you many want to log back into your account in a Chrome browser window. 11

12 VIEW TRADE YOUR INVESTMENTS 12

13 HOME 13

14 ACCOUNT SUMMARY Participant Summary 14

15 ACCOUNT SUMMARY Investment Summary 15

16 ACCOUNT SUMMARY Pending Activity 16

17 ACCOUNT SUMMARY Transaction History 17

18 ACCOUNT SUMMARY Investment Performance 18

19 ALLOCATIONS AND TRANSFERS Allocation Model 19

20 ALLOCATIONS AND TRANSFERS Re-Allocate Portfolio 20

21 ALLOCATIONS AND TRANSFERS Transfer Between Investments 21

22 ALLOCATIONS AND TRANSFERS Transfer Funds to HSA 22

23 PLANNING TOOLS HSA Asset Allocation Calculator Self-Directed Investing allows you to manage your account and make your own investment decisions. Although we will not make a recommendation or provide individual advice for your HSA Investment account, this tool may assist you in determining the mutual fund asset classes that best matches your objective and risk tolerance. Prospectuses containing complete information, including most recent month-end total returns, management fee charges and expenses, are available by clicking on the Prospectus link on the Investment Options page. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be more or less than their original principal cost. An investment in mutual funds is not insured by the FDIC, NCUA or any other government agency. All funds in your HSA are purchased at NAV as either no load or load waived fund. Each of the fund companies reserves the right to charge a short-term redemption fee if held for less than the timeframe listed in the prospectus. 23

24 PLANNING TOOLS HSA Asset Allocation Calculator 24

25 STATEMENTS ON DEMAND Monthly Statements 25

26 STATEMENTS ON DEMAND Custom Period Statement 26

27 PERSONAL PERFORMANCE 27

28 QUESTIONS? Q. What does self-directed account mean? A. Self-directed means that neither the HSA bank custodian, nor the investment partner, provides investment advice. You are responsible for selecting which investments are right for you. If you are seeking investment advice, consult an investment professional. Q. How often are investment options updated? A. Investment options are updated on a quarterly basis and are available via your online account. Q. How long does it take to transfer funds? A. It takes 1-2 business days to transfer money to/from your investment account. 28

29 QUESTIONS? Q. How can I access my investment account? A. You can access your investment account directly from your online HSA account. Q. Can I go below the $1,000 threshold in my HSA? A. No. When funds are transferred from your HSA to your investment account, the amount of the transfer cannot bring the balance of your HSA below your minimum investment threshold. Q. Can I use my investment funds to pay for qualified medical expenses? A. No. You cannot make payments for qualified medical expenses directly from your investment account. If you wish to use funds from your investment account, the funds will first need to be transferred back into your HSA account. 29

30 QUESTIONS? Q. When are funds are debited from the available balance and when do the settle? Funds are memo posted at time of transfer request? A. Day 0: Transfers are sent to Devenir at 1 PM CT. Day 1: Devenir sends ACH Debit to Custodian's Investments in Process Account Day 2: Devenir receives funds from Custodian Day 3: Purchases posted to account. Q. Investment Sales and Transfer back to HSA Cash. When are funds available to the accountholder? A. Day 0: Participant requests transfer to HSA cash Day 1: Funds credited to HSA Custodian's Investments in Process account Day 2: Credit posted to HSA Account 30

31 CONTACT