Yes, Charles Schwab offers HSA accounts through a partnership with HealthEquity

Charles Schwab does not operate its own HSA program, but it partners with HealthEquity to provide HSA accounts to Schwab customers. When you open an HSA through Schwab, HealthEquity manages the account backend — they handle the tax documents, process contributions, and track your balance. Schwab's role is to connect you to the program and, in some cases, offer investment options within the account.

This setup matters because it means your HSA is not held directly by Schwab the way a brokerage account would be. You are working with two companies: Schwab for the initial connection and HealthEquity for the actual account administration. Both companies will send you statements and tax forms.

The account works the same way any HSA does: you contribute pre-tax money (up to the annual limit set by the IRS), use it to pay may have access to medical expenses tax-free, and can invest unused funds for long-term growth. The main difference is which company processes your transactions and holds your money.

Key Takeaways

  • Charles Schwab partners with HealthEquity to offer HSA accounts, so HealthEquity administers the account even though you may open it through Schwab.
  • You can invest HSA funds in mutual funds, ETFs, and other securities through the account, rather than leaving the money in cash.
  • Contributions are made with pre-tax dollars, and withdrawals for may have access to medical expenses are tax-free.
  • You will receive tax documents and statements from both Schwab and HealthEquity, so keep track of both sources when filing taxes.

How to open an HSA through Charles Schwab

To open an HSA through Schwab, you start on Schwab's website or by calling their customer service line. Schwab will direct you to the HealthEquity enrollment process. You will need to provide basic personal information, your Social Security number, and proof that you are enrolled in a high-deductible health plan (HDHP) — this is a requirement for any HSA, not just Schwab's version.

The HDHP requirement is strict: you cannot open an HSA unless you are covered by a may have access to high-deductible health plan through your employer, the marketplace, or a private insurer. If you do not have an HDHP, you cannot use an HSA at all, regardless of the provider. Schwab or HealthEquity will ask for proof — usually a letter from your health plan or a screenshot from your insurer's website showing your plan type.

Once your account is open, you can set up contributions through payroll deduction (if your employer offers it) or by making manual deposits. Payroll deduction is the most common route because it reduces your taxable income automatically. If you are self-employed or your employer does not offer payroll HSA contributions, you can deposit money yourself and deduct it on your tax return.

Investment options within a Schwab HSA

One reason some people choose Schwab's HSA partnership is access to investment options. Unlike some HSA providers that keep your money in a savings account earning minimal interest, a Schwab HSA lets you invest in mutual funds, exchange-traded funds (ETFs), individual stocks, and bonds. This is useful if you do not plan to spend the HSA money when ready and want it to grow over time.

You manage these investments the same way you would in a regular Schwab brokerage account — through Schwab's trading platform. You can buy and sell securities, set up automatic rebalancing, and monitor your portfolio. There may be transaction fees depending on what you buy, though Schwab offers many commission-free funds and ETFs.

Keep in mind that investing HSA money is optional. You can also leave your balance in the cash portion of the account if you prefer. Some people use a hybrid approach: they keep enough cash on hand to cover expected medical expenses for the next year or two, and invest the rest for long-term growth.

Contribution limits and tax treatment

The IRS sets HSA contribution limits each year, and they vary based on whether you have individual or family coverage. For 2024, the limit is $4,150 for individual coverage and $8,300 for family coverage — but these numbers change annually, so check the IRS website or your Schwab HSA documents for the current year's limit. You can contribute up to the limit regardless of which provider you use.

Contributions reduce your taxable income dollar-for-dollar. If you contribute $3,000 to your HSA in a year, your taxable income drops by $3,000. This is true whether you contribute through payroll deduction or make deposits yourself (though payroll deduction is simpler because the reduction happens automatically).

Withdrawals for may have access to medical expenses — copays, deductibles, prescriptions, dental work, vision care, and many other health-related costs — are tax-free. Non-may have access to withdrawals are taxed as income plus a 20 percent penalty, so it is important to keep records of what you spend the money on. After age 65, the penalty goes away, but non-medical withdrawals are still taxed as income.

Fees and costs to know about

Charles Schwab and HealthEquity may charge different fees depending on how you use the account. HealthEquity typically charges a monthly maintenance fee (often $2 to $3) if your balance falls below a certain threshold, though this varies. Schwab may charge transaction fees for certain trades, though many of their funds and ETFs are commission-free.

Ask Schwab or HealthEquity directly about their current fee schedule before you open the account. Fees can change, and different account types may have different costs. Some employers subsidize HSA fees as part of their benefits package, so check with your employer too.

One way to avoid or reduce fees is to keep a higher balance in the account. Many providers waive monthly fees if your balance stays above $1,000 or $2,500. If you are just starting out and expect a low balance, compare the fee structure to other HSA providers to see if Schwab is the best fit for you.

Moving money in and out of your Schwab HSA

You can deposit money into your Schwab HSA through bank transfer, payroll deduction, or check. Withdrawals can be made by debit card, check, or bank transfer. HealthEquity issues a debit card that works like any other card — you swipe it at a pharmacy or doctor's office and the money comes out of your HSA. Some people use this card for routine medical expenses and keep the rest of their HSA invested.

If you change jobs or want to move your HSA to a different provider, you can roll the money over to another HSA without tax consequences. This is called a trustee-to-trustee transfer, and it does not count against your annual contribution limit. You can do this as many times as you want, so you are not locked into Schwab forever.

Keep receipts for any medical expenses you pay with HSA money, even if you use the debit card. The IRS does not require you to submit receipts with your tax return, but you need them if you are ever audited and need to prove that a withdrawal was for a may have access to expense.

Comparing Schwab's HSA to other providers

Schwab's HSA partnership is one option, but it is not the only one. Other major HSA providers include Fidelity, Lively (powered by HealthEquity), TD Ameritrade, and various health insurance companies. Each has different fee structures, investment options, and user interfaces.

If you already have a Schwab brokerage account and are comfortable with their platform, using Schwab's HSA may be convenient because you can manage everything in one place. If you are looking for the lowest fees or the widest investment selection, you may want to compare Schwab to competitors. Some providers have no monthly fees, while others offer more investment options.

The core HSA rules are the same everywhere: contributions are pre-tax, may have access to medical withdrawals are tax-free, and you must have an HDHP to open one. The differences are in fees, investment choices, and how straightforward the platform is to use. Spend a few minutes comparing before you decide.

Frequently Asked Questions

Can I have both a Schwab HSA and an HSA with another provider?

No. You can only have one HSA at a time across all providers. If you open a second HSA, you will exceed the annual contribution limit and owe taxes and penalties on the excess. You can move money between providers through a trustee-to-trustee transfer, but you cannot hold two active accounts simultaneously.

What happens to my HSA if I leave my job?

Your HSA stays yours. It does not belong to your employer, so you keep the account and the money even after you leave. You can continue to use it to pay medical expenses, and you can keep investing the balance. If your new employer offers an HSA, you can roll your old one into the new one or keep both separate (though you still cannot contribute to two HSAs in the same year).

Can I use my HSA to pay for health insurance premiums?

Only in specific situations. You can use HSA money to pay premiums for COBRA coverage (continuation coverage after job loss), long-term care insurance, or health insurance while you are receiving unemployment benefits. You cannot use it for regular health insurance premiums while you are employed. Dental and vision insurance premiums are also not covered.

Do I need to spend my HSA money every year?

No. Unlike a flexible spending account (FSA), an HSA has no "use it or lose it" rule. Money rolls over year to year, and you can let it grow indefinitely. This is one reason HSAs are valuable for long-term savings — you can invest the money and use it decades later if you want.

What counts as a may have access to medical expense?

may have access to expenses include copays, coinsurance, deductibles, prescriptions, dental work, vision care, mental health treatment, and many other health-related costs. The IRS publishes a full list on their website. Generally, if it is a health-related cost that your health insurance would not cover, your HSA can. Over-the-counter medications are covered only if you have a prescription.