The HSA Custodial Agreement you signed when opening your HSA remains in effect with the following additional terms for your Brokerage Option. Neither Stearn’s Bank nor Falcon National Bank (your HSA Custodian) is affiliated with optionsXpress or brokersXpress (the Brokerage Provider).
1. Definitions. In addition to the definitions found in Article XII, the following are added.
A. Brokerage Account. “Brokerage Account” means your account established with the Brokerage Provider for the purposes of trading securities through the signing of the the Brokerage Provider’s Brokerage Terms and Conditions Agreement, the Brokerage Provider’s Addendum to Account Terms and Conditions for HSA Brokerage Account through HSA Resources and this Amendment to your HSA Custodial Agreement.
B. HSA Resources Checking Account. Your “HSA Resources Checking Account” or “Checking Account” refers to your demand deposit account established with HSA Resources for your HSA. Your HSA Resources Checking Account offers checking, debit card(s) and ACH access.
2. HSA Contributions. You agree to make all HSA contributions directly into your HSA Resources Checking Account. You acknowledge that you cannot make contributions directly to your Brokerage Account.
3. HSA Distributions. You agree to take all distributions from your HSA through your HSA Resources Checking Account. You acknowledge that you cannot take distributions from your Brokerage Account. To transfer or rollover funds to a new IRA custodian, you agree to first liquidate and move your money from your Brokerage Account into your HSA Resources Checking Account. You further acknowledge and agree that you will maintain sufficient balance in your Checking Account for all distributions and Fees. If you do not have sufficient funds to cover current distributions, you agree that you are responsible to liquidate sufficient assets in your Brokerage Account and move the money into your Checking Account or face possible overdraft charges. There will be a service fee per item that overdraws the account (see Schedule of Fees for current fee amount).
4. Movement of Money between Brokerage Account and Checking Account. You agree that the only method available to move money between your Brokerage Account and your HSA Resources Checking Account is through electronic means using the ACH system originating from your Brokerage Account (you need to go to your Brokerage Account website to move the money from your Checking Account into your Brokerage Account and to move money from your Brokerage Account into your Checking Account). You are not permitted to transfer securities in-kind to your HSA Resources Checking Account and must liquate any securities prior to the transfer.
5. Limited Custodial Duties for Brokerage Account. You understand and agree that we have a limited role in your Brokerage Account. You authorize and acknowledge that we do not review trades prior to execution and that the details of trading and your Brokerage Account are governed by your agreement with your Brokerage Provider. Our role is limited to administrative recordkeeping as required by the IRS. We do not provide any fiduciary services or investment advice. You agree to hold HSA Resources and your HSA Custodian harmless from any liability you incur in the Brokerage Account.
6. Disclosure of Information. You agree and consent that your Brokerage Provider may provide your HSA Custodian and HSA Resources confidential information about you and your account necessary for the proper administration of your HSA and vice versa.
7. Termination and Amendment. You acknowledge and agree that the HSA Custodian and HSA Resources may terminate the brokerage account upon thirty (30) days prior written notice to you. You also agree that HSA Custodian can amend this agreement at any time upon thirty (30) days prior written notice.
8. Fees. You agree to pay Brokerage Account fees associated with your Brokerage Account. These include a Brokerage Annual Custodial Fee that is deducted from your Checking Account and also fees pursuant to your agreement with your Brokerage Account Provider.
9. $1,000 Minimum Balance in Checking Account Required. You agree to maintain a One Thousand Dollar ($1,000) minimum balance in your HSA Checking Account. The amount in your Brokerage Account does not count towards the minimum in your Checking Account. If the balance in your Checking Account falls below the minimum ($1,000) anytime during a calendar month a service fee will be charged for that month. Please see our Schedule of Fees for the amount of the fee.
10. Notice of Errors. You agree to notify us of any errors you find on any statements within sixty (60) days of the mailing of such statements. In the absence of such notice, you shall be deemed to have approved the statement and we shall be relieved of and discharged with respect to all matters set forth.
NOTE: You may only fund your account with funds from your HSA Resources Checking Account. This service will be set-up automatically via an ACH transaction. Brokerage Trading Fees are deducted from your Brokerage Account balance. Your HSA Annual Custodial Fee and Brokerage Annual Custodial Fee ($15) are deducted from your Checking Account balance. You must maintain a sufficient Checking Account balance to pay these fees. Funds with optionsXpress are not FDIC insured.
