Some info I got from Select account:
Q. What is the Charles Schwab Self-directed Brokerage Account?
The Charles Schwab Self-directed Brokerage account is an online investment account through Charles Schwab & Company. The account is accessed through the Internet at
www.schwab.com. With this account you are eligible to invest your HSA balances of $10,000 or more into investments available on the Charles Schwab platform. Eligible investments include stocks, bonds, mutual funds, ETFs, and a variety of other investments on the Schwab trading platform.
Q. How do I become eligible for the Charles Schwab Self-directed Brokerage Account?
Once your SelectAccount Health Savings Account reaches a minimum level of $11,000, you are eligible to move $10,000 to the Charles Schwab Self-directed Brokerage Account. $1,000 must remain in your SelectAccount Base Savings Account.
Q. How do I open the account?
Electronic Brokerage application process: Log into your HSA account (
www.selectaccount.com). Proceed to the “Investment tab” and click “Open Basic Investment Account”. After the money has moved from the HSA to the Basic Investment Account, the member will log into their HSA and click “View Investment Partner Website”. From the (Devenir) Investment “Home Page”, Under the Planning and Advice tab and “click” on the Schwab Self-directed Brokerage Electronic Account Opening link, to complete the electronic application. If you already have a Basic Investment Account this is the step they will start with to complete the application.
Q. How do I fund my Charles Schwab Self-directed Brokerage Account?
You will log into your SelectAccount HSA and click on “View Investment Partner Website” link. In the Investment Account, hover over the “Plan Services” tab and click on “Transfer Investments”. Here you will need to re-allocate the money 100% to the Schwab Self-directed Brokerage option. You will also want to change your Future Investment Elections to 100% Schwab Self-directed Brokerage account so future deposits are automatically directed to the Schwab account. Within 2-3 business days the money will be deposited into the Schwab Self-directed Brokerage Account. (To view brokerage account, go to
www.schwab.com)
Q. What costs are associated with the Charles Schwab Self-directed Brokerage Account?
You will be responsible for any applicable Charles Schwab trading commissions and fees charges for the securities you buy and sell in your account. You will find information regarding these charges at
www.schwab.com. In addition, an annual maintenance fee of $18.00 will be deducted from your Schwab account to cover recordkeeping costs associated with your SelectAccount HSA Charles Schwab Self-directed Brokerage Account.
Q. How do I view my SelectAccount Charles Schwab Self-directed Brokerage Account?
To view your Schwab account you will need to register your account on the
www.schwab.com site. You will receive login and password access from Charles Schwab to begin viewing your account at
www.schwab.com.
Note: Total account value for the Charles Schwab Self-directed Brokerage Account may be viewed on the Basic Investment Account website under the title Individually Managed Account. However, no transactions either to move money to or from the Brokerage account or to the SelectAccount base balance account can be done in the Basic Investment Account website.
Q. What if I need to take a distribution to cover medical expenses from my Charles Schwab Self-directed Brokerage Account?
Should you need to withdraw dollars from your Schwab account to pay for medical expenses, you will need to liquidate securities to cover the dollar amount you wish to withdraw from the account. Simply, log into your HSA, go to Investment and click on “View Investment Partner Website”. Under “Plan services”, click on “Transfer to Base Balance”. Distributions must flow back to your base balance account for proper yearend tax reporting of the disbursement to you.
Q. What if my Charles Schwab Self-directed Brokerage Account balance goes below 10,000?
This is acceptable.
Q. What if I have other Charles Schwab accounts? Will I be able to link my HSA to my other accounts?
Yes, if you have other Schwab accounts you will be able to “household” the SelectAccount HSA Charles Schwab Self-directed Brokerage account to your other account assets.