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Awareness & Action Needed Regarding Your Health Savings Account Investment Platform
As a result of the acquisition of TD Ameritrade (TDA)1 by Schwab, the current investment platform available to members as a feature of your Health Savings Account (HSA) at Elements Financial Federal Credit Union (Elements Financial or Elements) will soon become unavailable. We evaluated numerous other platforms and have chosen DriveWealth for our members to use, moving forward, based on their various investment options.2
DriveWealth is a registered broker-dealer and a member of FINRA. We are confident this transition will continue to provide you with convenient ways of accessing and managing your investments. The new platform will also enhance your investment and trading experience including real-time trading, exchange-traded funds, fractional shares, and multiple investment models.
As a result of moving this investment platform from TDA to DriveWealth, we ask for your awareness of the following important dates and actions for you to complete:
Your new DriveWealth platform is now live for enrollment. As of this date, investment contributions can no longer be transferred into TDA, and all contributions for your investment purposes must be made using the DriveWealth platform within your existing Elements HSA Portal.
After this date, you will no longer have access to your TDA account through your Elements HSA Portal. However, your Elements HSA cash account will remain unaffected by this change.
Access to your TDA account through your Elements HSA Portal will end. View only access of your TDA account will be available directly through TDA at www.tdameritrade.com.
If you have not liquidated your TDA account, any remaining investment holdings at TDA associated with your HSA will be force liquidated. Force-liquidation may delay the transfer of funds back to your Elements HSA cash account. The transfer may take up to 10 business days. Funds are not available during the transfer process. A $24.99 TDA broker-assisted transaction fee will apply.
AS A REMINDER: No later than November 7, 2022, please liquidate your investments at TDA linked to your Elements HSA. By doing so, you will avoid your current investments being force-liquidated into your Elements HSA cash account, and you will avoid a $24.99 TDA broker-assisted transaction fee.
To support your needs during this transition, we have a dedicated HSA team to assist you at (855) 440-4472.3 Thank you for your business and for your awareness and action toward this time-sensitive matter.
As a result of the acquisition of TD Ameritrade (TDA)1 by Schwab, the current investment platform available to members as a feature of your Health Savings Account (HSA) at Elements Financial Federal Credit Union (Elements Financial or Elements) will soon become unavailable. We evaluated numerous other platforms and have chosen DriveWealth for our members to use, moving forward, based on their various investment options.2
DriveWealth offers a seamless investment solution with either open brokerage (self-directed) or a select list of investment offerings. This change will give you more ways to access and manage the investments in your HSA with a host of modern features, including:
August 22, 2022: DriveWealth Now Live
Your new DriveWealth platform is now live for enrollment. As of this date, investment contributions can no longer be transferred into TDA, and all contributions for your investment purposes must be made using the DriveWealth platform within your existing Elements HSA Portal.
November 7, 2022: Final Day to Self-Liquidate
After this date, you will no longer have access to your TDA account through your Elements HSA Portal.
However, your Elements HSA cash account will remain unaffected by this change.
November 8, 2022: TDA Blackout Begins, and Without Action Needed, Liquidation Begins
Access to your TDA account through your Elements HSA Portal will end. View only access of your TDA account will be available directly through TDA at www.tdameritrade.com If you have not liquidated your TDA account, any remaining investment holdings at TDA associated with your HSA will be force liquidated. Force-liquidation may delay the transfer of funds back to your Elements HSA cash account.
The transfer may take up to 10 business days. Funds are not available during the transfer process. A $24.99 TDA broker-assisted transaction fee will apply.
Dedicated HSA Support at (855) 440-4472 is available Monday-Friday, 8 a.m. to 5 p.m. Eastern.
In the simplest terms, liquidation means selling your securities position at TDA. The funds from that sale are then added to your Elements HSA cash account.
Yes, you can liquidate your TDA assets and begin using the new, embedded investment solution at any time on or after August 22, 2022. Elements encourages you to liquidate before the blackout period beginning November 8, 2022, so you will not incur a $24.99 TD Ameritrade broker-assisted transaction fee.
No, but without action before November 8, 2022, any investment holdings at TDA associated with your HSA will be force liquidated and a $24.99 TDA broker-assisted transaction fee will be assessed.
If you do not take action to liquidate your TDA account before November 8, 2022, any investment holdings at TDA associated with your HSA will be force liquidated and a $24.99 TDA broker-assisted transaction fee will be assessed. The proceeds of the sale of your investments will move to your Elements HSA cash account.
These are residual funds. They will automatically sweep from your TDA account back into the HSA cash account prior to liquidation.?
DriveWealth serves as our investment broker-dealer. They are pioneers in fractional trading and embedded investing, committed to transforming the investment landscape by providing fractional, transactional, and mobile investing. To learn more, visit drivewealth.com.
Alliance Benefit Group, LLC (ABG) is an investment advisor firm that serves as the registered investment advisor (RIA) for DriveWealth. They are responsible for choosing and managing all funds and were built upon the belief that everyone should have access to high-quality, cost-effective solutions. From the beginning they have supported clients by providing:
To learn more, visit consultabg.com.
Not all TDA investments are offered, yet ABG Consultants can help you find a similar fund for you. The DriveWealth investment solution offers more than 5,500 selections in the Open Brokerage (self-directed) option. Contact HSA Support at (855) 440-4472 with questions.
Yes, please reach out to HSA Support at (855) 440-4472.
Yes, a minimum HSA balance of $2,500 is required to begin. However, with our pre-enrollment option you can set up your investment account details with DriveWealth before you reach that minimum amount, including an option to configure automated funding. Once your HSA reaches $2,500, your investment account will be activated, and if enabled, automated funding will begin. For existing TDA accountholders, the $2,500 minimum HSA balance will be waived through December 31, 2022, to allow members the opportunity to reinvest the same amount liquidated from TDA with Drive Wealth.
Yes, with our DriveWealth investment offering, you can now set it and forget it. Select any amount more than $2,500 as your automated funding threshold, and any funds more than that amount will be automatically swept from your HSA cash account into your preselected funds.
Yes, you have the option to pause your automated funding at any time or change the threshold (minimum of $2,500).
We are waiving the $2,500 HSA cash threshold needed to invest through December 31, 2022, for TDA investors as they transition. On January 1, 2023, all members will need to have at least $2,500 in their HSA cash account to invest.
Investing your HSA funds is one way to boost your long-term financial wellness. At Elements, HSA investing is easy, with access to leading-edge investment options and the tools you need to be successful.
TD Ameritrade will no longer be available to you as a feature of your Elements HSA.
The DriveWealth platform is the only option within the Elements HSA for investment options.
Yes, you can keep your HSA at Elements.
Not all TDA investments are offered by DriveWealth; therefore, an in-kind transfer option is not available. Within the DriveWealth platform, you will choose from an open brokerage (self-directed) option or a select list, based on what best fits your needs.
We encourage you to control the liquidation of your own accounts before forced liquidation becomes necessary (only if you do not take action as explained above before November 8, 2022.) Proactive liquidation allows you to choose the timing you feel is best for your account. The transfer process is designed to take 2-5 business days to process and during that time, transferred funds will be unavailable. While you may miss market experience for this brief period, accounts may be re-invested quickly. The liquidation may occur in a down market, but the re-investment will also likely occur in a down market allowing you to, once again, participate in the market experience. The liquidation from TDA to your Elements HSA cash account is a non-reportable transaction.
There are no tax implications from moving your funds from TDA to DriveWealth. Transfers to and from investments within our HSA portal are non-reportable transactions. Elements does not provide tax advice.
Yes, but you could lose out on future contributions made by your employer. Talk to your employer for additional information.
Please review the HSA Investment Platform Fees document within DriveWealth, accessible from the Resources tab of your existing Elements HSA portal.
