Edward Jones does not offer HSAs directly, but can help you invest money already in one
Edward Jones is a brokerage and investment firm, not a bank or health insurance company. They do not create or administer HSAs themselves. However, if you already have an HSA through your employer or health insurance plan, you can open an investment account with Edward Jones and move your HSA funds there to invest rather than leaving them in a low-interest savings account.
This matters because most HSAs start in a basic savings account that earns very little interest. If you have money in your HSA that you do not plan to use for medical expenses in the next year or two, moving it to an investment account can let that money grow faster. Edward Jones can manage that investment side once the account is set up.
The HSA itself still comes from your health insurance company or employer — Edward Jones just becomes the place where you invest the money inside it.
Key Takeaways
- Edward Jones cannot create or administer an HSA; you must open one through your health insurance company or employer first.
- Once you have an HSA, you can transfer the funds to an Edward Jones investment account to invest the money instead of keeping it in savings.
- Moving HSA money to investments makes sense if you have more than you need for near-term medical expenses and want the money to grow.
- You will need to contact your current HSA provider to request a transfer to Edward Jones, and Edward Jones can guide you through that process.
How to move an existing HSA to Edward Jones
If you already have an HSA and want to invest it through Edward Jones, the first step is to contact an Edward Jones financial advisor in your area. They can explain what investment options are available and what fees explore. Edward Jones has locations in most towns, and you can find one through their website or by phone.
Once you decide to move forward, you will need to contact your current HSA provider — usually your health insurance company or the bank that holds your HSA — and request a trustee-to-trustee transfer. This is a direct transfer from your current HSA to the new one at Edward Jones. You do not touch the money yourself, so there are no tax penalties or reporting issues. Your current provider sends the funds directly to Edward Jones on your behalf.
The Edward Jones advisor will help you with the paperwork and can often coordinate with your current HSA provider to make the transfer smoother. The whole process typically takes one to three weeks, depending on how quickly your current provider processes the request.
What happens to your HSA when you move it
Your HSA rules do not change when you move it to Edward Jones. You can still use the money for may have access to medical expenses without paying taxes on it. You can still contribute to it during open enrollment if your employer offers it. The only thing that changes is where the money sits and how it is invested.
At Edward Jones, your HSA funds can be invested in stocks, bonds, mutual funds, or other investments, depending on what the firm offers. This means the value can go up or down based on market performance. If you need the money for a medical bill, you can withdraw it, but you will need to sell investments first if the market has moved.
Edward Jones will charge fees for managing the account — typically an annual advisory fee or a percentage of the assets under management. Ask your advisor exactly what those fees are before you move your HSA, so you understand the cost.
When moving your HSA to Edward Jones makes sense
Moving an HSA to an investment account is most useful if you have a substantial balance — usually at least several thousand dollars — and you do not expect to need that money for medical expenses in the next year or two. If you have only a few hundred dollars or you use your HSA regularly to pay medical bills, keeping it in a savings account is simpler and safer.
The longer your time horizon, the more sense investing makes. Someone in their 30s or 40s with a healthy HSA balance can benefit from decades of investment growth. Someone who is older or who has chronic health expenses that drain the account regularly may not see enough benefit to justify the fees and complexity.
Also consider whether you are comfortable with investment risk. If the market drops and you suddenly need to withdraw money for a medical emergency, you might have to sell investments at a loss. A savings account avoids that risk, even if it earns less.
Other places to invest an HSA
Edward Jones is one option, but not the only one. Many health insurance companies and HSA administrators — like Fidelity, Lively, HealthEquity, and others — let you invest HSA money directly through their platforms without moving it elsewhere. These often have lower fees than a full-service brokerage like Edward Jones.
Some employers also offer investment options within the HSA plan they sponsor, so you may not need to move the account at all. Before you contact Edward Jones, check with your current HSA provider to see what investment options they already offer. You might be able to invest right where your HSA already is.
If your current provider has limited options or high fees, then moving to Edward Jones or another brokerage may make sense. Compare the investment choices and fees at each place before deciding.
Questions to ask Edward Jones before you move
When you speak with an Edward Jones advisor about moving your HSA, ask these specific questions: What are all the fees — both annual advisory fees and per-transaction costs? What investment options are available for HSA accounts? How long does a trustee-to-trustee transfer typically take? Can they coordinate directly with your current HSA provider, or do you have to handle that yourself? What happens if you need to withdraw money quickly?
Also ask whether Edward Jones has experience with HSA transfers and how many they handle. A firm that does many HSA transfers will likely have a smoother process than one that rarely does them.
Frequently Asked Questions
Can I move my HSA to Edward Jones if my employer sponsors it?
Yes, as long as your employer's HSA plan allows transfers out. Some employer plans restrict where you can move the money, so check your plan documents or ask your HR department first. If transfers are allowed, Edward Jones can help you request a trustee-to-trustee transfer from your employer's HSA provider.
Will I owe taxes if I move my HSA to Edward Jones?
No, as long as you use a trustee-to-trustee transfer. The money moves directly from one HSA to another without you receiving it, so there are no tax consequences. If you withdraw the money yourself and then deposit it, you could face penalties, so always ask for a direct transfer.
What if Edward Jones loses money on my HSA investments?
Investment losses are your responsibility. If the market drops and your HSA balance shrinks, you still own that lower amount. This is why investing an HSA makes sense only if you have time to recover from market downturns and do not need the money soon.
Can I move my HSA back out of Edward Jones later?
Yes. If you change your mind or want to move to a different provider, you can request another trustee-to-trustee transfer out. There may be fees for closing the account, so ask about those upfront.
Do I still get the tax deduction for HSA contributions if I invest through Edward Jones?
Yes. The tax benefits of an HSA do not change based on where you invest the money. Contributions are still tax-deductible, and withdrawals for medical expenses are still tax-free, regardless of whether the money is in savings or investments.