Invest Hsa Funds: Td Ameritrade Guide

If you're looking to invest your HSA funds with TD Ameritrade, there are a few steps you need to follow. Firstly, it's important to note that TD Ameritrade does not offer Health Savings Accounts (HSAs). However, they do offer Health Savings Brokerage accounts, which allow you to invest money in the stock market. To open an HSA brokerage account with TD Ameritrade, you must first open a traditional HSA with a bank and fund it with at least $1,000. Once you've done that, you can link your HSA to a TD Ameritrade brokerage account and start investing your funds. This process can be completed through your HSA bank dashboard, where you can submit an application for the TD Ameritrade brokerage account.

Open a Health Savings Account (HSA) with a bank

To invest your HSA funds with TD Ameritrade, you must first open a Health Savings Account (HSA) with a bank. This is because TD Ameritrade does not offer Health Savings Accounts, but they do offer Health Savings Brokerage accounts.

A Health Savings Account is a type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. This means that you can use untaxed dollars in your HSA to pay for deductibles, copayments, coinsurance, and some other expenses, potentially lowering your overall healthcare costs.

• Check your eligibility: HSAs are available exclusively to those with a qualifying health plan. You are eligible if you have a High-Deductible Health Plan (HDHP). You are not eligible if you have healthcare coverage beyond qualified health plans (including Medicare enrollment), if you are being claimed as a dependent on someone's tax returns, or if you have received Veterans Affairs benefits within the past three months.
• Research HSA providers: You can research HSA providers online, check with your health insurance company to see if they partner with any HSA financial institutions, or ask your bank if they offer an HSA option that meets your needs.
• Compare banking options: Banking options, services, and features may differ by HSA provider. Some things to consider include fees (such as account opening or closing fees, and monthly maintenance fees), and banking options like debit cards and online banking.
• Choose an HSA provider: Once you have researched and compared different HSA providers, you can choose the one that best meets your needs and eligibility.
• Enroll in an HSA-eligible plan: After you have chosen an HSA provider, you will need to enroll in an HSA-eligible plan. This can be done through your employer during their annual open enrollment period, or on your own if you have a high-deductible health plan that is not offered through an employer.
• Fund your HSA: Once you have enrolled in an HSA-eligible plan and opened your HSA, you can start contributing funds. You can contribute funds on a pre-tax basis, which means they are not subject to Federal income tax and are also exempt from most state income taxes. It's important to note that there are contribution limits set by the IRS, so be sure to refer to their guidelines.

Once you have completed these steps and funded your HSA with at least $1,000, you can then move on to opening an HSA brokerage account with TD Ameritrade and start investing your HSA funds.

Open an HSA brokerage account with TD Ameritrade

To open an HSA brokerage account with TD Ameritrade, you must first open a Health Savings Account (HSA) with a bank. This is because TD Ameritrade does not offer Health Savings Accounts, but they do offer Health Savings Brokerage accounts.

Once you have opened an HSA with a bank and funded it with over $1,000, you can then open an HSA brokerage account with TD Ameritrade. This is because you can only invest the amount over $1,000 from your HSA, as the bank requires you to have at least $1,000 sitting in your HSA savings account at all times, in case you need to spend it immediately on health expenses.

To open an HSA brokerage account with TD Ameritrade, you must submit an application through your HSA bank dashboard. First, log in to your HSA bank account, hover over "Accounts", and then click "Manage Investments". You will then see a screen that says "Investment Options". From here, scroll down and click "Enroll Now" under TD Ameritrade. This will take you to the TD Ameritrade application, which you will need to fill out and submit.

Once you have submitted your application, you will be prompted to create login information for your TD Ameritrade HSA brokerage account.

Contribute at least $1,000 to your HSA

Contributing at least $1,000 to your HSA is the first step in investing your HSA funds with TD Ameritrade and HSA Bank. This is because you can only invest the amount over $1,000 from HSA Bank. This is a requirement set by HSA Bank to ensure that you have at least $1,000 in your savings account for immediate health expenses.

To contribute at least $1,000 to your HSA, you can follow these steps:

• Contribute to your HSA: You can contribute to your HSA in several ways. If you have an employee's HSA, your employer may contribute to your HSA, or you can contribute yourself. Family members or any other person may also make contributions on your behalf. Contributions to your HSA must be made in cash; contributions of stock or property are not allowed. The amount you can contribute depends on the type of HDHP coverage you have, your age, and the date you become an eligible individual. For 2024, the contribution limit for self-only HDHP coverage is $4,150, and for family HDHP coverage, it is $8,300. If you are 55 or older, you can contribute an additional $1,000 as a catch-up contribution.
• Roll over your HSA: If you already have an HSA, you can roll over the funds into a new HSA within 60 days. This is a way to contribute to your HSA without adding new funds.
• Contribute to your employer's HSA: If your employer offers an HSA, they may allow you to contribute a portion of your salary to the HSA through a cafeteria plan. This is a convenient way to contribute to your HSA directly from your paycheck.
• Contribute through a brokerage account: If you have a brokerage account, such as TD Ameritrade, you can transfer funds from your brokerage account to your HSA. This is a way to contribute to your HSA while also investing in the stock market.

Remember that you must be an eligible individual to contribute to an HSA. This means that you must be covered by a high-deductible health plan (HDHP), have no other health coverage except what is permitted, not be enrolled in Medicare, and not be claimed as a dependent on someone else's tax return. Additionally, you can only contribute up to the annual limit set by the Internal Revenue Service (IRS). Overcontributing can lead to unexpected tax penalties.

Link your HSA with TD Ameritrade

To link your HSA with TD Ameritrade, you must submit an application for a TD Ameritrade brokerage account through your HSA Bank dashboard.

First, log in to your HSA Bank account. Then, hover over "Accounts" and click "Manage Investments." You'll see a screen with "Investment Options." From there, scroll down and click "Enroll Now" under TD Ameritrade. This will take you to the TD Ameritrade application. Fill it out and submit it.

Once you've submitted your application, you'll be prompted to create login information for your new TD Ameritrade HSA brokerage account.

Transfer funds from HSA to TD Ameritrade

To transfer funds from your HSA to TD Ameritrade, you must first open a Health Savings Account (HSA) with a bank and then open an HSA brokerage account with TD Ameritrade. This is because TD Ameritrade does not offer Health Savings Accounts, but they do offer Health Savings Brokerage accounts.

Once you have both accounts, you can transfer funds from your HSA to your TD Ameritrade account. Here is a step-by-step guide:

• Log in to your HSA Bank account.
• Hover over "Accounts" and click "Manage Investments."
• Click "Enroll Now" under TD Ameritrade.
• Fill out and submit the TD Ameritrade application.
• Create login info for your TD Ameritrade HSA brokerage account.
• Go back to your HSA Bank dashboard.
• Hover over "Accounts" and click "Pay Bill/Contribute."
• Set up the bank account from which you will transfer funds to your HSA.
• Select "one-time" or set up recurring transfers.
• Select the tax year and the amount you want to contribute.
• Submit your transfer and wait 2-3 business days for the funds to post to your TD Ameritrade account.

Now that your HSA funds have been transferred to your TD Ameritrade account, you can start investing! Remember that you can only invest the amount over $1,000 from your HSA Bank account.

Frequently asked questions