Choose your mutual funds
Once your HSA reaches the investment threshold of $1,000, you may choose to invest a portion of your HSA dollars in mutual funds. The table below lists mutual fund investment options available as part of the Optum Bank HSA that have been reviewed and approved by the State of Tennessee Department of Treasury.
When you set up your Optum Bank investment account, you can choose how you want the funds to be allocated among the available mutual funds. After your account is established you can also change your investment elections, transfer funds and rebalance your account.
- There is no minimum initial investment amount required by mutual funds
- You have the ability to transfer between funds and re-allocate balances
- You may set up automatic portfolio rebalancing
- If a qualified medical expense comes up, it’s easy to move money back to your HSA cash account to pay for it
| Asset Class | Mutual Fund | Ticker |
|---|---|---|
| US Equity | Vanguard Total Stock Market Index Fund - Admiral | VTSAX |
| International Equity | Vanguard Total International Stock Index - Admiral | VTIAX |
| Blend Stock / Bond | Vanguard Wellington Fund - Admiral | VWENX |
| US Bonds | Vanguard Total Bond Market Index - Admiral | VBTLX |
| US Bonds | Vanguard Short Term Corporate Bond - Admiral | VSCSX |
| International Bonds | Vanguard Total International Bond Index - Admiral | VTABX |
| US TIPS | Vanguard Short Term Inflation Protection - Admiral | VTAPX |
| Target Date Funds | Vanguard Target Retirement 2020 Fund - Investor | VTWNX |
| Target Date Funds | Vanguard Target Retirement 2030 Fund - Investor | VTHRX |
| Target Date Funds | Vanguard Target Retirement 2040 Fund - Investor | VFORX |
| Target Date Funds | Vanguard Target Retirement 2050 Fund - Investor | VFIFX |
| Target Date Funds | Vanguard Target Retirement 2060 Fund - Investor | VTTSX |
To start investing your HSA in mutual funds, simply follow these steps:
- Sign in to your HSA and set up your investment account by choosing the funds you want to invest in.
- Indicate the amount you want to transfer into your investment account. The minimum amount that can be transferred at one time is $100. So you will need to have a balance of $1,100 before you are eligible to invest (assuming $1,000 investment threshold).
- To make things easier, you can choose to set up recurring transfers/sweeps. This means that you can choose an amount and any time your account exceeds it, funds will be automatically transferred to your investment account. For example, if you choose $1,000 and your balance hits $1,500, $500 will be swept over to your investment account.
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