My company HSA is through HSA Bank. HSA Bank gave me two options to use in order to invest my HSA contributions (Schwab or Devenir). I have been using Schwab. HSA Bank is now doing away with both of those options and forcing everyone to use their HSA Invest platform.
The process as it was explained to me is that I have to sell my Schwab Target Date Fund and transfer those monies over to the HSA bank in cash and then I'm able to invest in one of their options via their platform.
My question is, is this a taxable event, and if so, is there a way to avoid making it a taxable event? I just started investing my HSA contributions this year so that would probably be short term capital gain hit I'm guessing.
I was told starting Sept 24, 2024 I can no longer invest funds into the Schwab account, only sell. Sounds like early 2025 they will automatically liquidate the Schwab account and transfer the cash over to the HSA bank account. I spent way too much time on the phone with them yesterday and as you can see I didn't get very far with their reps.
The process as it was explained to me is that I have to sell my Schwab Target Date Fund and transfer those monies over to the HSA bank in cash and then I'm able to invest in one of their options via their platform.
My question is, is this a taxable event, and if so, is there a way to avoid making it a taxable event? I just started investing my HSA contributions this year so that would probably be short term capital gain hit I'm guessing.
I was told starting Sept 24, 2024 I can no longer invest funds into the Schwab account, only sell. Sounds like early 2025 they will automatically liquidate the Schwab account and transfer the cash over to the HSA bank account. I spent way too much time on the phone with them yesterday and as you can see I didn't get very far with their reps.