Health Savings Accounts (HSAs)

HSAs continue to grow in popularity, along with increased employer adoption of high-deductible health plans (HDHPs). Increasingly the tax-advantaged, long-term savings potential of HSAs is being realized, as HSA investments exceeded $10B, a 23% increase from the prior year.1 To maximize HSA investment choices and allow for professional management through a Registered Investment Advisor, Schwab makes it possible to invest those savings in brokerage accounts designed for HSAs.

Maximize possible HSA benefits by investing through Schwab’s Health Savings Brokerage Account (HSBA)

Schwab's HSBA is offered as part of some of the industry's leading HSA programs, allowing access to a broad range of investment choices and providing the ability to leverage the investment management services of an advisor.

An individual enrolled in an HDHP can establish a consumer-direct HSA with one of the providers in Schwab's network and then invest through Schwab's HSBA. Once the HSBA is funded, account owners can appoint their advisor to manage their investments.

HSBAs work like other similar types of Schwab accounts. They are accessible to investors through Schwab Alliance or Schwab.com and to advisors through the Schwab Advisor Center website where they can also leverage the standard custodial billing process for management fees. Data downloads are available through Schwab Data Delivery and can be incorporated in Schwab Open View Gateway as well as integrated with third-party software.

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

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1. 2018 Year-End Devenir HSA Research Report, February 27, 2019.

FOR INSTITUTIONAL AUDIENCES ONLY.

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 Schwab Bank and 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.

The IRS defines HSA-eligible plans as high-deductible health plans (HDHPs) with a deductible of at least $1,350 for an individual and $2,700 for families. See IRS Publication 969 for 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 Bank, 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 Bank and Charles Schwab Trust Bank, Members of FDIC.