Fidelity Investments has launched full-service health savings accounts for clients of broker- dealers, banks and RIAs who use Fidelity Clearing & Custody Solutions as their custodian. It says the offering is the first of its kind.
The Fidelity HSA is fully integrated with Wealthscape, the firm’s advisor technology platform, and allows advisors to handle all aspects of clients’ HSAs including investment management and operational oversight in one place. Advisors can choose from more than 10,000 mutual funds, stocks, bonds and ETFs for investments.
Contributions are tax-deductible, grow tax-free and can be withdrawn tax-free so long as the money is spent on qualified medical expenses, which makes HSAs more tax-friendly than traditional 401(k)s or IRAs.
“HSAs help advisors 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,” said Begonya Klumb, head of HSA, Fidelity Health Care Group, in a statement. “We know there is significant demand from the advisors we work with, since HSAs are a way to help clients invest in their long-term well-being in a highly tax-efficient way.”