Recent headlines have been filled with news of rapid and wild fluctuations in the value of investments such as mutual funds and money market accounts, causing many people to reassess their investment portfolios to make sure they are meeting their financial goals while managing their risk tolerance.
Employees who have invested Further health savings accounts (HSAs) and voluntary employee beneficiary association (VEBA) funds can easily make changes to those investment accounts to accommodate the changing market landscape and their investment goals. Using a simple, one-step process, Further account holders can transfer funds directly from HSA and VEBA investment accounts back to their base balance account.
Any funds moved into a base balance account will immediately begin to earn interest, which is paid monthly. This is notable because interest rate tiers increase in accordance with the amount in a base balance account. In other words, the higher the balance, the higher the interest rate could be. Click here for interest rate charts for HSAs and VEBAs. Even after transferring funds back to a base balance, gains from investments are not taxed.
Account holders who wish to take advantage of interest rate earnings provided by their base balance account can elect to move all or a portion of funds from their investment account.
As always, we recommend employees work with a financial or investment advisor when determining how to allocate their funds.
This blog post has been prepared for informational purposes only and is not intended to provide, nor should it be relied on for legal, financial or accounting advice. All investment strategies and investments involve risk of loss. Nothing contained in this document should be construed as investment advice. Further recommends that you seek the advice of a financial professional to discuss your specific situation.