You are correct in your statement to invest the money, it is just that interest rates are quite high at the moment and expected to go higher.

Why invest into a risky market right now when the guaranteed account is giving 4.5%!?

> Once it’s in there, make sure you invest it, otherwise it’s just sitting as cash and getting no interest.

The settlement account that your money just sits in earns interest. Right now, those accounts are earning ~2-4.5% interest.

Vanguard: https://investor.vanguard.com/investment-products/mutual-funds/profile/vmfxx

Fidelity: https://www.fidelity.com/mutual-funds/fidelity-funds/money-market-funds-fcash

You’re welcome! There are no advantages of maxing it all at once other than “you can invest your money into the market quicker so your money spends more time invested”.

With a HSA, your employer match does not depend on your contribution meaning you always receive the match whether you contribute or not, so that is not an issue here.

I would advise to contribute to your HSA on a normal per paycheck schedule in case you leave your employer mid-year and decide not to go with a HSA plan with your new employer, this may cause pro-rated contribution issues and having to take some contributions out and stuff.

Not for a HSA. With HSA’s, there is no vesting period for your employer match. The instant your employer puts the match into your HSA, it is 100% yours to spend, invest, or transfer out to your personal HSA.

A HSA is literally a bank account (Health Savings Account) you owe and the money is not in the control on your employer.

I have a HSA account with Fidelity, it is free meaning no monthly fee no matter the balance.

Once a year, I go to the Fidelity site and initiate a “trustee to trustee” HSA transfer.

Fidelity takes my signed forms, mails them to Health Equity (my employers preferred HSA bank), Health Equity sends Fidelity my money, and I invest in index funds and individual stocks on Fidelity. There are no fees involved in this process.

Every time I switch employers, I do the same transfer into Fidelity. Be aware to leave $25 when doing that final transfer because Health Equity and other HSA banks charge about that much of a fee if you take all of your money out (meaning you are closing the account).

Instead, transfer everything except $25 and then go buy HSA approved OTC medicine and other stuff you may need and pay with the HSA debit card.