Multiple brokerage TDIF?

My 401k is invested in a Fidelty TDIF. I am looking at maximizing my HSA for investment and Schwab is only offered for a TDIF but there are various Vanguard options (just none TDIF) and no Fidelity options (just none TDIF) and no Fidelity options. For brokerage I was considering Vanguard. I thought I recall Jeremy mentioning a penalty for multiple TDIF through various brokerages?

Thank you in advance!

Hi jeym,
You won’t have a penalty for having multiple TDIFs through multiple brokerages, as long as you do not collectively contribute more than the maximum allowable amount in a year. However you will have to pay a fee to buy for example a Vanguard fund in a Fidelity account. What brokerage are you currently using that only has TDIFs from Schwab?

Hi Vivitron,
Thank you for clarifying!
My HSA is through Optum Bank and they only offer Schwab TDIFs but also these various Vanguard accounts…

I’d stick it all in VITSX

You can use this tool to find out how diff funds and etfs have done historically, it might help with your decision.

Hi jeym,
When it comes to choosing your investments when you have limited options, I would use the same strategy as choosing 401k investments: How to pick your 401k investments – Personal Finance Club