Fidelity Launches ‘Full Service’ HSA Solution for Advisers

The Fidelity HSA is described as “a full-service, open architecture brokerage account that is fully integrated with Wealthscape,” Fidelity’s adviser technology platform.

Fidelity Investments has announced the availability of a new full-service health savings account (HSA) for financial intermediaries.

The firm says the Fidelity HSA is a full-service, open architecture brokerage account that is fully integrated with Wealthscape, Fidelity’s adviser technology platform. Fidelity acts as the HSA custodian and provides all services integrated through its brokerage platform, “allowing advisers to handle all aspects of clients’ HSAs, including professional investment management and operational oversight, in one place.”

HSAs offer a triple tax advantage: contributions are tax-deductible, investors can spend their money on qualified medical expenses tax-free, and any growth is tax-free.

“Our research shows that paying for health care is a top concern for many people, and HSAs help advisers provide peace of mind for their clients around their financial futures, including the ability to handle health care costs, which are often difficult to plan for,” says Begonya Klumb, head of HSA for the Fidelity Health Care Group.

The Fidelity Health Savings Account offers a full brokerage platform with access to more than ten thousand mutual funds, as well as stocks, bonds and exchange traded-funds (ETFs). Advisers can manage and monitor Fidelity HSAs through Wealthscape. Functionality includes easy account setup and ongoing management; the ability to fund accounts and transfer assets; and trading, reporting, correspondence and service features.

According to Fidelity, HSAs enable advisers to diversify their product offerings and potentially increase assets under management. According to Morningstar, as of mid-2018, total HSA assets surpassed $51 billion, $10 billion of which is invested.