Health Savings Accounts (HSAs)

HSAs continue to grow in popularity and are emerging as an important tool to help Americans plan and pay for current and future medical expenses. As the cost of health care increases, more people are feeling unprepared to pay for medical expenses in retirement. Investors are realizing the triple tax-advantages and long-term investing potential of HSAs and investing in them as part of their retirement savings strategy and overall financial plan. Schwab's Health Savings Brokerage Account (HSBA) makes it possible to expand investment choices within an HSA and allows Registered Investment Advisors to manage HSA savings as part of your client's complete financial picture.

Schwab's Health Savings Brokerage Account

Schwab's Health Savings Brokerage Account (HSBA) is an investment feature offered through industry-leading HSA providers, allowing access to a broad range of investment choices, and providing the ability to leverage the investment management services of an advisor.

HSBAs work like other Schwab accounts. They are accessible to advisors through Schwab Advisor Center (SAC) and to investors through Schwab Alliance or Schwab.com Data downloads are available through Schwab Data Delivery® and can be incorporated in Schwab Open View Gateway and integrated with third-party software. Additionally advisors can leverage the standard custodial billing process for management fees through SAC.

Like individual retirement accounts, HSAs are individually owned and portable, so even if an investor is not currently with an HSA provider offering access to Schwab's HSBA, they can open an HSA and transfer their existing savings to a provider who does. And, as long as they remain covered by a high deductible health plan, investors may continue making contributions to their HSA to further realize the benefits of investing their savings in an HSBA.

To learn more, visit the Introduction to Schwab Health Savings Brokerage Accounts (HSBAs) section of the Service Guide.

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Please visit www.irs.gov to learn more about IRS tax guidelines or consult with you tax professional. Schwab provides referrals to unaffiliated, third-party health savings account (HSA) providers, who use Charles Schwab & Co., Inc., brokerage services for the investment portion of their HSA programs.

Schwab is not responsible for the services provided by these HSA providers. The Schwab Health Savings Brokerage Account is offered through Charles Schwab & Co., Inc. (Member SIPC), the registered broker-dealer, which also provides other brokerage and custody services to its customers.

Eligibility for an HSA requires coverage by an HSA-eligible high-deductible health plan and does now allow coverage by another ineligible health plan or enrollment in Medicare.

See IRS Publication 969 for the most current information defining HSA eligibility, contribution limits, and more about HSA-eligible health plans.

The Charles Schwab Corporation provides services to retirement and other benefit plans and participants through its separate but affiliated companies and subsidiaries: Charles Schwab Trust Bank and Charles Schwab & Co., Inc.

Brokerage products and services are offered by Charles Schwab & Co., Inc. (Member SIPC at www.sipc.org). Trust, custody, and deposit products and services are offered by Charles Schwab Trust Bank, Member FDIC.

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