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Optum Financial institution HSA is a Well being Spending Account (HSA) from Optum, a monetary firm related to the United Healthcare Insurance coverage firm. This account is finest for these with United Healthcare insurance coverage or who work for an employer that covers the minimal required charges customers should pay to have an account.
Charges – 5
Buyer Service – 6
Ease of Use – 7
Funding Choices – 6
Minimal Stability to Make investments – 6
6
Whole
Optum Financial institution HSA has many thrilling options that would make it an important possibility as an HSA supplier. Nonetheless, account holders pay a charge till their steadiness reaches $5,000 they usually cannot make investments till they’ve saved no less than $2,000.
Execs and Cons
professionals
- Month-to-month charge could also be paid by the employer or waived in some instances
- Low-fee index funds for obtainable for funding accounts
- High quality funding choices, though restricted
- Receipt vault to trace previous bills
cons
- Month-to-month charge, if not waived or paid by the employer
- Minimal steadiness for investments
- A restricted menu of funding choices
- Poor customer support opinions
Who Is Optum Financial institution HSA For?
Our Rating: 6
Month-to-month Price: $3.75
Stability Required to Waive Price: $5,000
Funding Threshold: $2,000
Optum Financial institution HSA is likely to be a superb match for you in case your employer gives Optum as an HSA supplier or if you happen to primarily spend money on index funds.
- Employer gives an Optum account. In case your employer gives Optum as an HSA supplier, you may discover it helpful. Extra so if the employer is prepared to pay the month-to-month upkeep charge in your behalf. Optum has wonderful, though restricted, funding decisions. Optum nonetheless gives sufficient choices to make a portfolio that matches most monetary targets. Particularly for index traders.
- Index traders. This account is an efficient match for Buyers with a easy index portfolio who need low-cost choices. Optum gives an array of index funds with low expense ratios. Vanguard, Schwab, and Constancy funds can be found from Optum at no further value.
What We Like About Optum Financial institution HSA
In case you have an Optum Checking account, there are many issues to love, corresponding to plentiful funding choices and a good cellular app.
Funding Choices
Optum gives strong funding choices though the choice is proscribed. Index traders will benefit from the low-fee decisions corresponding to funds from Vanguard and acquainted brokers corresponding to Schwab and Constancy. Goal date funds can be found from Schwab. A number of of the funds in Optum’s lineup have expense ratios which are lower than 0.10%.
Few Account Charges
Optum will solely cost three different kinds of account charges.
- ATM transaction charge of $2.50. (Bear in mind the financial institution/ATM you employ might also cost a further charge.)
- An outbound switch charge of $20.00 or rollover charge to a different HSA supplier.
- A $1.50 charge for printed statements.
Apart from the month-to-month charge, Optum prices ATM charges per transaction. Should you keep away from ATMs when attainable, it can save you on this small cost. You solely incur an outbound charge whenever you switch your HSA to a different supplier. This one-time charge is customary amongst rollovers. And the printed assertion charge is definitely averted by those that desire digital statements.
Receipt Vault
The receipt vault permits you to add receipts to arrange and conveniently retailer them in a single place. That manner, you possibly can have them for later reimbursements and tax functions. Guarantee your itemized receipt consists of the title of the supplier or service provider, the date, the precise quantity of expense, and an in depth description. To add the receipt, take an image or scan it and add it to the cellular app or desktop dashboard.
Scheduled Contributions
Organising automated deposits into your funding account is a good way to construct wealth. Scheduling contributions permits you to develop your tax-advantaged HSA account passively. When you meet the funding threshold, you possibly can make investments your contributions in response to your fund choices.
Cell App
The cellular app permits you to do greater than the usual banking features like paying payments and monitoring funds. It might additionally observe contribution limits, seize and submit receipts, seek for certified medical bills, and extra.
One other characteristic of the cellular app is Alexa and Google integration. Optum’s apps enable Google and Alexa to reply frequent questions concerning the HSA. Questions on qualifying bills, HSA contribution limits, tax varieties, and Optum Financial institution HSA contact info.
Optum’s app may also hook up with totally different digital wallets. Whether or not you need to hook up with Apple Pay, Google Pay, or Samsung Pay, the cellular app covers all three.
Certified Medical Expense Device
The certified medical expense software is a searchable internet web page of bills. Every expense is listed as a qualifying, potentially-qualifying, or a non-qualifying medical expense. Hover over every listed expense on the web page for extra element about {qualifications}.
The place Optum Financial institution HSA May Enhance
Optum prices a month-to-month upkeep charge that different HSA suppliers don’t cost. Additionally, different HSA suppliers don’t have a minimal funding threshold. Options like Full of life and Constancy don’t have these charges and minimums. And Optum has a smaller funding choice than some rivals as effectively.
However customer support is the world the place most reviewers need to see enchancment. There are frequent points with logins and lengthy wait instances on the name middle. Reviewers point out a number of transfers on the telephone and unclear communication from the representatives. Different reviewers reported declined qualifying bills, and customer support couldn’t assist resolve the problems.
Optum Financial institution HSA Buyer Service
This buyer help is obtainable on-line help anytime by way of the FAQ part, which gives fast solutions to frequent issues. Log into your account to see your steadiness, order a brand new card, or verify your assertion. It even gives an HSA Tax Middle useful resource in your tax questions. Optum gives a contact type for some other points you will have. It additionally gives a name middle open Monday-Friday weekly, excluding main holidays.
Charges & Limits
Optum prices a small month-to-month upkeep charge of $3.75. It’ll waive the charge if you happen to maintain a mean steadiness of $5,000 or extra.
It additionally has an funding threshold. Your steadiness should stay at or exceed $2,000 every time you make a brand new funding.
How To Open an Account
Earlier than you possibly can open an HSA at Optum or any financial institution, you could meet particular {qualifications}, together with a qualifying Excessive-Deductible Well being Plan, to be eligible. Your well being protection ought to solely embody what’s permissible by the IRS. You may’t be enrolled in Medicare or be claimed as a depending on one other particular person’s tax return. The IRS publication 969 accommodates extra details about these circumstances.
Have your social safety quantity, a legitimate electronic mail, and medical ID card together with your group or employer quantity prepared. In case you are enrolling as a person, you’ll not want a medical ID card with the group or employer quantity.
For identification verification, you might also want a replica of your social safety card and a legitimate state-issued or government-issued picture ID. In case your picture ID doesn’t comprise your tackle, you might also want a replica of an electrical invoice, fuel invoice, renter’s settlement, or mortgage assertion. Your cellular phone invoice will not be accepted.
To switch an HSA, full the appliance for opening an HSA with Optum. After the account is about up, log in and full an HSA Rollover Switch Request Kind. The request type is in Varieties & Paperwork, beneath the Assist & Instruments menu.
How Protected Is Optum Financial institution HSA?
Total, the platform is protected, and Optum protects your account in a number of methods. It makes use of cloud-based enterprise identification administration (EIDM) to make sure that solely licensed customers entry your knowledge. It additionally complies with federal privateness laws corresponding to FISMA, SAS70, and HIPAA, amongst others.
Moreover, Optum’s safety methods help security measures corresponding to identification credentialing, bodily and logical entry administration, good card ID badges, biometrics, and HSPD-12 options.
Greatest Options
Those that need to make the most of investing in an HSA, particularly in the course of the first yr of opening the HSA, may profit extra from taking a look at options with out an funding threshold. If you do not need a minimal funding threshold or to pay a month-to-month charge, take into account Full of life and Constancy as options. Full of life and Constancy provide extra funding decisions as effectively.
Full of life
Full of life makes a speciality of HSAs, and they’re wonderful. Accounts haven’t got month-to-month recurring charges, and there isn’t any minimal steadiness required earlier than you possibly can entry investing options.
Should you use Full of life by way of an employer, they’re charged a modest charge, however it’s free for you. Funds for investments are transferred to a linked account at TD Ameritrade, the place you possibly can select from any supported funding. TD Ameritrade is a high brokerage in its personal proper, and the partnership with Full of life is a win-win for everybody.
You may pay for certified bills with the Full of life debit card, reimburse your self for bills paid by way of different strategies, or save up bills for future reimbursement. If you need an HSA that works with any medical insurance firm, has nearly no charges and gives an enormous vary of investments with no minimums, you must take into account Full of life.
Constancy
Constancy is likely one of the most important funding brokerages in america. Its HSA is a good selection, notably for individuals who already make investments with Constancy. You may select a self-directed account with no recurring account charges or minimums. There’s additionally a hybrid robo-advising model known as the Constancy Go HSA, which requires a month-to-month charge for balances of $10,000 or extra.
The Constancy HSA can also be noteworthy for its entry to low-cost investments. This account consists of entry to Constancy’s mutual funds with no expense ratio and just about all the U.S. inventory, bond, ETF, and mutual fund market.
Assured traders could need to use the self-directed account with no recurring charges. Should you’re uncertain which shares or funds to purchase, take into account the competitively priced Constancy Go HSA possibility.
The Backside Line
Optum continues to be a superb selection for an HSA supplier, even with the charges and customer support points. In spite of everything, it would waive your month-to-month charge.
Different suppliers could have extra intensive funding choices, however it nonetheless gives loads of decisions for traders. Nonetheless, Optum has just a few options value taking a look at, just like the receipt vault and certified medical expense software.
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