My HR told me they only offer a FSA.
Can I open an outside HSA account or does it have to be through my employer?
If so, where can I open one up and which index funds are good?
Do they offer target date index funds?
THANKS!!!
I think it’s only through your employer. I have one but it only offers a small selection of items you can choose to invest in. Mine does have several target date index funds available to select.
I think it depends on your insurance as well. I’m part of a group that shares the health needs of the group. It qualifies as insurance but isn’t fully recognized as such. That’s another topic, however to answer your question I cannot take advantage of an HSA with our current “insurance”. I know that doesn’t really help your questioning however it’s some additional information.
You need a high deductible plan.
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As @ashfrica mentioned, you need to have a qualifying health insurance plan to legally open an HSA. These are high deductible health plans (HDHP).
Some more info: https://www.healthcare.gov/glossary/high-deductible-health-plan/
HSA IRS info: https://www.irs.gov/publications/p969
Once you do that, technically you can open an HSA with any qualified HSA provider. Its your own private account that you can take with you unrelated to your employer, like an IRA. There’s a lot of great advantages to it.
Some HSA accounts will let you invest the balance, or require a minimum, or have fees to trade.
Personally, we’ve used HSA Bank for many years and have been happy with the service. We keep a large chunk of the balance as cash as a sort of emergency fund and invest another large chunk.
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