How to open a Schwab Health Savings Brokerage Account (HSBA)

How to open a Schwab Health Savings Brokerage Account (HSBA)

A Schwab Health Savings Brokerage account (HSBA) is an investment feature available within a Health Savings account (HSA). HSBA provides access to thousands of investment choices, and the ability for clients to appoint their investment advisor to manage the investments.

There are two ways in which your clients may have access to a Schwab HSBA:

  • Through an employer-facilitated HSA program.
  • Through a consumer-direct HSA established with the HSA provider of their choice.

Some clients may already have access to an HSA featuring Schwab's HSBA through the HSA program facilitated by their employer. In most cases, these HSBAs can also be accessed by an advisor. Individuals should contact their Human Resources and current HSA provider to understand if Schwab's HSBA can be made available within their program.

Like individual retirement accounts, HSAs are individually owned and portable, so even if an investor is not currently with a provider offering access to Schwab's HSBA, they can open an HSA and transfer their existing savings to a provider who does. 

In either case, HSBAs can be established once an HSA is opened, and any provider required balance minimums (can be up to $2,000) are met. Once the HSBA is created, an advisor can be appointed to manage the portfolio by linking it with a Limited Power of Attorney (LPOA) agreement.

To help make it easier for advisors and clients seeking an HSBA, Schwab has established connections with several HSA providers. The following providers offer consumer-direct HSA Programs, with access to Schwab's HSBA:

  • Lively
  • Optum Financial
  • WEX Health, Inc. (WEX)

Note: This is not an exhaustive list of all providers or programs that may be offering Schwab's HSBA.

  1. Open an HSA with an HSA provider integrated with Schwab.
  2. Fund the HSA.
    • Individuals can fund their account through either direct contributions or transfers from an existing HSA.
    • Individuals should contact their chosen HSA provider to inquire about initiating a transfer.
  3. Open the Schwab Health Savings Brokerage Account (HSBA) through the HSA provider.
    • Once the HSA is opened and funded with a provider offering HSBA, the brokerage account at Schwab can be established electronically through the provider's site.
  4. Authorize an advisor to manage the HSBA.
  5. Move money into the HSBA and begin investing.
    • With the HSBA created, individuals will need to move money into their HSBA by following the instructions available on the HSA provider's site.
    • Once HSA savings are directed to the HSBA at Schwab, and the LPOA is executed, you can manage your client's investments through Schwab Advisor Center.

Linking:

  • Once the HSBA is opened at Schwab, the account holder appoints an advisor by completing Schwab's HSBA Limited Power of Attorney (LPOA) Agreement.
    • This form is eligible for DocuSign®.
  • From the Account Management page on Schwab Advisor Center > click Go to Forms library. Search titles.
  • Advisors link to HSBAs using an SL Trading master. HSBAs cannot be linked using an FA master.
  • Advisors can use an existing SL Trading master that is used to connect to Personal Choice Retirement Accounts (PCRA) to also link and manage HSBAs. For questions about obtaining your firm’s SL Trading master, contact your Schwab service team.

Managing/Pulling Fees:

  • If you and your client agree to assess fees from the HSBA account, management fees can be deducted via the SL master from the client's HSBA.
Resource: Advisor Managed Consumer Direct Fact Sheet
Resource: HSBA Fact Sheet
Resource: HSBA Welcome Brochure
Resource: HSBA Pricing Guide
Form: Health Savings Brokerage Account (HSBA) LPOA Agreement for Investment Advisor

 

Introduction to Health Savings Brokerage Accounts