saab2000

I've opted into the HSA since I was hired here just under five years ago. I use it as an investment vehicle and our first contributions of 2022 were made yesterday.

Today I went to the website because it was announced that we no longer go through Optum Bank (though we can) but it's now lumped into the Freedomtoretire website. It just links to the Optum site.

I wanted to check my investment options and make sure the auto-invest function was still set where I wanted. It appears to no longer be an option and the investment choices now are far less desirable than they were previously. The Vanguard S&P 500 fund is no longer an option and the ones available are all high expense ratio funds. I wasn't aware that changes to this account were more than linking it to the Empower website but maybe I missed this. The HSA can be a great vehicle for retirement investment for low level consumers of health care and it seems to have been degraded significantly as such.

Anyone else who uses the HSA care to chime in? Or feel free to PM me if there's something I'm missing. I'd rather avoid the SWAPA forum but may have to have a peek at that place. I know most aren't using the HSA so there may not be a ton of responses here.

Thanks for any insight I'm missing.

4V14T0R

Further erosion of benefits. It seems to be the SWA way. Hopefully every benefit we have is codified in the next contract.

Sorry, I know this doesn't answer your question. I use the HDHP myself so I am interested in an answer too.


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saab2000

I'm not sure this is a Southwest thing though it wouldn't surprise me. I'm disappointed that our HSA is administered by Optum Bank rather than one of the large firms like Schwab, which would definitely be lower cost and easier to navigate. But it's been with Optum since I was hired so that's not new. The loss of the Vanguard investment option is hugely disappointing if that's in fact the case.

TipTanks

Unless there's something unique about your plan that prevents it, you can do custodian to custodian transfers from any HSA administrator to any other HSA administrator.

My company (not SWA) HSA is with some dinky no-name HSA provider that has horrible investment options. I opened an HSA at Fidelity (zero fees, endless investment options) and twice a year I transfer the balance of my company HSA to my personal HSA at Fidelity. Fidelity handles all of the paperwork, it's very easy.

On the way to a six-figure HSA at Fidelity invested in FZROX!

saab2000

Great tip. Thanks!

I won’t have that much because I started with the HSA late in life but it’ll be enough to be very useful.

I have a small account with Fidelity because of another carrier I once worked at. I’ll check with them about this.

Crockrocket95

Not to mention they still have the reduced contribution from the company... its ridiculous.

bruhaha

I don’t work at Southwest, But there is nothing in the IRS rules keeping you from opening a HSA account with any HSA custodian.

you just have to be covered under a HDHP. Once you meet that condition you can open a HSA with any HSA custodian.

my airline uses Optum Bank as their HSA custodian so I let the airline put their contribution there. I opened my own with Fidelity and opened another one for my spouse at Fidelity because she becomes eligible as a covered person under my HDHP.

I do my HSA contributions to Fidelity and it all shakes out with the 8889 come tax filing season.

the only thing you miss out on by making your own contribution to your HSA and not doing a payroll deducted contribution is you pay payroll taxes on your personal contribution.

but most major airline pilots eventually reach the threshold where they are no longer taxed for social security so it doesn’t matter… you won’t be paying payroll taxes on the amount above the threshold.


I don’t really care how much the airline contributes. But what ever they contribute is free money just like a 401k match or direct contribution. I just want to make sure the HSA is maxed before maxing the 401k contribution.

don’t know how old you are but don’t forget the $1000 catch up for you and your spouse the year you or your spouse turns 55. So once that happens you can contribute $7300 for 2022, +$1000 for your spouse if he/she is 55 and +$1000 if you are 55. For a total annual contribution of $9300 for the last 10 years of your career. If you don’t take Medicare at 65 you can still contribute to your HSA as long as you’re still covered under a HDHP.

even though you started late that’s still $93000 of tax free money if you only contribute from 55 to 65 as long as you have $93000 worth of receipts for medical expenses. You have been keeping your medical receipts for the last 5 years correct?

usernamehere

Just started the process with fidelity. Thanks for the heads up about the crappy funds, and the tips.

Salukidawg

Thank you for starting this thread. I just started my HSA a year ago and had no clue that the investment options through Optum were so bad. I’m glad to know that I can transfer to a different HSA provider on my own. Does anyone know if Schwab offers an HSA investment option?

saab2000

Thanks for the inputs folks. It’s been a learning experience and I will also be opening an HSA with Fidelity.