Our platform allows administrators to set custom HSA investment threshold amounts for an organization. Let's discuss how and what custom threshold amounts mean for an organization and its members.
Language Note
Individuals who are part of an organization are referred to as members. You may also know members as employees, participants, or consumers.
How to customize an organization's investment threshold amount
Partner Administrator Feature
This feature is only available for partner administrators. It is not available for employer administrators. If you're an employer and want to adjust your organization’s investment threshold, please contact your administrator.
Select Organizations from the navigational menu.
Select the appropriate organization.
Select Organization Settings.
Under Health Savings Investments, write in the preferred threshold amount.
Select Save Changes.
Review the confirmation modal and then select Set Custom Threshold.
How do investment threshold updates impact members who have not opened an HSA investment account on our platform?
To open an investing account, members must have enough funds in their health savings account to meet the investment threshold (minimum cash balance) requirement. Members can invest any HSA funds that exceed the threshold requirement.
Example 1
The investment threshold is $1,000. Mike has not yet opened an investment account. Mike’s current HSA balance is $1,500. Mike can create an investment account. After creating an investment account, Mike can invest $500.
Example
The investment threshold is $1,000. Erin has not yet opened an investment account. Erin’s current HSA balance is $800. Erin cannot create an investment account.
How do investment threshold updates impact members who have opened an HSA investment account on our platform?
Investment thresholds limit:
new investment accounts and
future investment purchases
If a member's HSA cash balance is below the investment threshold, their existing HSA investments will not be impacted. (A member can hold onto any existing investments if their cash balance is below the threshold. However, they cannot make new investment purchases if their cash balance is below the threshold.
How do investment thresholds impact investments sold?
When an investment is sold, funds are returned to the member's HSA cash balance. For this reason, a member may be unable to reinvest funds from an investment sold if their cash balance is below the threshold.
How are custom threshold updates applied?
If you update an organization's investment threshold under its Organization Settings, only the organization and its members will be impacted.
*you must select Set Custom Threshold on the confirmation modal to apply updates
How do I set or modify the default threshold?
To modify the default investment threshold, go to the HSA Investments tab under Settings in the navigational menu. To learn more about updating the default investment threshold, read "Set the default investment threshold for the platform.”
Are there investment fees for members?
Investment accounts with a balance below $5,000 are charged a monthly fee of $1.
Investment accounts with a balance of $5,000 or more are charged a monthly balance fee of .01%.
Drivewealth partnership
We partner with DriveWealth, a global fintech investment platform, to empower members to control their investments from the palm of their hands. DriveWealth’s modern infrastructure allows us to provide an easy and straightforward investment experience.