Author Topic: Leaving HSA Bank for Fidelity HSA  (Read 1433 times)

pmac

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Leaving HSA Bank for Fidelity HSA
« on: March 19, 2019, 06:21:38 PM »
Does anybody have experience switching from HSA Bank to Fidelity's HSA? Trying to avoid the inevitable headaches involved with switching HSA providers.

HSA Bank is charging me a $2.50 monthly fee, and Fidelity has no fees.

Thanks!

Mr. Metal Mustache

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #1 on: March 19, 2019, 09:19:51 PM »
I'm in the process of doing it now. Pretty simple, just start their TOA form (Transfer of Assets) and then mail it in to them and it typically takes 2-4 weeks.

0 Fees and better investment options :)

Telecaster

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #2 on: March 19, 2019, 10:19:01 PM »
HSA Bank doesn't give up easily, but just keep pushing. 

terran

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #3 on: March 20, 2019, 06:19:11 AM »
I might consider just doing a 60 day rollover. I had no trouble withdrawing everything from HSA Bank just like I would if reimbursing myself for medical expenses, then calling and closing the account. I wasn't even charged the $25 account closing fee. This was a year ago, so YMMV.

Once you have the money Fidelity requires you submit a check and form as online contributions can't be coded as a 60 day rollover. Note that you can only do one 60 day rollover per 12 month period (and note that that's not one per calendar year like many things, but per rolling 12 month period).

appleshampooid

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #4 on: March 20, 2019, 08:37:26 AM »
Whoa, missed the news on Fidelity offering a free HSA. FINALLY, one of the big players enters this game.

I have an Optum bank HSA that charges $3.00/month. I will look into a rollover.

ashsaves

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #5 on: March 20, 2019, 08:41:36 AM »
I just did this! It was incredibly easy - there's an online form on Fidelity to fill out, and they take care of the contacting HSA and initiating the transfer. No paperwork to physically fill out or mail in or anything. Probably took about 2 weeks total for the transfer to happen. I was charged $25 from HSA Bank for the account closing/transfer. But at least I'm done with the $3 monthly fees!!

appleshampooid

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #6 on: March 20, 2019, 08:52:00 AM »
I just did this! It was incredibly easy - there's an online form on Fidelity to fill out, and they take care of the contacting HSA and initiating the transfer. No paperwork to physically fill out or mail in or anything. Probably took about 2 weeks total for the transfer to happen. I was charged $25 from HSA Bank for the account closing/transfer. But at least I'm done with the $3 monthly fees!!
I just did same! If it all works electronically I will gift my next baby to Fidelity in thanks.

pmac

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #7 on: March 20, 2019, 04:42:27 PM »
I just did this! It was incredibly easy - there's an online form on Fidelity to fill out, and they take care of the contacting HSA and initiating the transfer. No paperwork to physically fill out or mail in or anything. Probably took about 2 weeks total for the transfer to happen. I was charged $25 from HSA Bank for the account closing/transfer. But at least I'm done with the $3 monthly fees!!

Thank you. That seems super easy.

kenner

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #8 on: March 20, 2019, 11:40:33 PM »
Doing a 60 day rollover was extremely easy.  I wasn't in the mood to deal with getting jerked around by my original HSA provider who have a wonderful (and deserved, based on my experience with their customer service) reputation for screwing up transfers in kind and taking months to actually move money, so I sold off my investments, wrote a check with '60 day rollover' written on it and the same box checked on Fidelity's deposit slip, and had my money going into investments at Fidelity in under a week.  I'm still stuck with payroll deposits going to my original HSA provider since that's who my employer uses, but I figure it's worth doing a 60 day rollover once a year to avoid their fees.

dragoncar

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #9 on: March 20, 2019, 11:52:31 PM »
I just did this! It was incredibly easy - there's an online form on Fidelity to fill out, and they take care of the contacting HSA and initiating the transfer. No paperwork to physically fill out or mail in or anything. Probably took about 2 weeks total for the transfer to happen. I was charged $25 from HSA Bank for the account closing/transfer. But at least I'm done with the $3 monthly fees!!

Anyone else using an investment window and does that mess up the transfer?  I have some investments through TD Ameritrade.  If I need to close them out first, that's gonna be a capital gains hit in CA.  Their paperwork actually shows that they charge an investment window fee, but they've never charged me.  Not sure this is worth the hassle for $30/year

ashsaves

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #10 on: March 21, 2019, 06:58:48 AM »
I just did this! It was incredibly easy - there's an online form on Fidelity to fill out, and they take care of the contacting HSA and initiating the transfer. No paperwork to physically fill out or mail in or anything. Probably took about 2 weeks total for the transfer to happen. I was charged $25 from HSA Bank for the account closing/transfer. But at least I'm done with the $3 monthly fees!!

Thank you. That seems super easy.

oh sorry, I totally forgot the important step 1, i had to make sure all my investments were sold so it was cash in HSAbank. I don't know what will happen if you request for a transfer but your money is still invested in TD Ameritrade/Devenir. It took a few days for the money to sell from TD Ameritrade and end up in my cash account. THEN I submitted the request on Fidelity.

terran

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #11 on: March 21, 2019, 12:53:53 PM »
I just did this! It was incredibly easy - there's an online form on Fidelity to fill out, and they take care of the contacting HSA and initiating the transfer. No paperwork to physically fill out or mail in or anything. Probably took about 2 weeks total for the transfer to happen. I was charged $25 from HSA Bank for the account closing/transfer. But at least I'm done with the $3 monthly fees!!

Anyone else using an investment window and does that mess up the transfer?  I have some investments through TD Ameritrade.  If I need to close them out first, that's gonna be a capital gains hit in CA.  Their paperwork actually shows that they charge an investment window fee, but they've never charged me.  Not sure this is worth the hassle for $30/year

I was able to transfer in kind from Lively/TDA to Fidelity, but I don't know about HSA Bank/TDA.

appleshampooid

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #12 on: April 27, 2019, 08:27:00 AM »
My transfer finally cleared yesterday. First opportunity to use FZROX as well.

aaahhrealmarcus

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #13 on: April 29, 2019, 08:38:28 PM »
Were you getting charged by HSA Bank because your balance was below a certain amount? I've been using HSA Bank for a year now and haven't noticed any monthly fees, but I haven't started using it to invest yet, either.

appleshampooid

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #14 on: May 01, 2019, 07:49:22 AM »
Were you getting charged by HSA Bank because your balance was below a certain amount? I've been using HSA Bank for a year now and haven't noticed any monthly fees, but I haven't started using it to invest yet, either.
Is your account sponsored through your employer? Or was it?

I haven't had an account at HSA Bank for several years, but one of my previous employers used them. It was free while I was an employee, and fees were supposed kick in when I separated (regardless of balance IIRC). Thing is, there was like a ~6 month delay in the fees actually being charged. I don't know if this was a normal thing, or just bad communication between employer and vendor. An additional wrinkle is that I continued doing work for the employer as an independent contractor - I ceased receiving any benefits and this was legally a separation, so it shouldn't have mattered, but given the state of HR/benefits software, I wouldn't be surprised if it somehow threw a wrench into the whole thing.

dragoncar

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #15 on: May 01, 2019, 05:26:30 PM »
Were you getting charged by HSA Bank because your balance was below a certain amount? I've been using HSA Bank for a year now and haven't noticed any monthly fees, but I haven't started using it to invest yet, either.
Is your account sponsored through your employer? Or was it?

I haven't had an account at HSA Bank for several years, but one of my previous employers used them. It was free while I was an employee, and fees were supposed kick in when I separated (regardless of balance IIRC). Thing is, there was like a ~6 month delay in the fees actually being charged. I don't know if this was a normal thing, or just bad communication between employer and vendor. An additional wrinkle is that I continued doing work for the employer as an independent contractor - I ceased receiving any benefits and this was legally a separation, so it shouldn't have mattered, but given the state of HR/benefits software, I wouldn't be surprised if it somehow threw a wrench into the whole thing.

This is probably it.  I pay like $1.50 per month ... there may be a minimum balance to avoid this but itís not worth the opportunity cost at their terrible interest rates

aaahhrealmarcus

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #16 on: May 01, 2019, 05:43:11 PM »
Were you getting charged by HSA Bank because your balance was below a certain amount? I've been using HSA Bank for a year now and haven't noticed any monthly fees, but I haven't started using it to invest yet, either.
Is your account sponsored through your employer? Or was it?

I haven't had an account at HSA Bank for several years, but one of my previous employers used them. It was free while I was an employee, and fees were supposed kick in when I separated (regardless of balance IIRC). Thing is, there was like a ~6 month delay in the fees actually being charged. I don't know if this was a normal thing, or just bad communication between employer and vendor. An additional wrinkle is that I continued doing work for the employer as an independent contractor - I ceased receiving any benefits and this was legally a separation, so it shouldn't have mattered, but given the state of HR/benefits software, I wouldn't be surprised if it somehow threw a wrench into the whole thing.

Yeah, it's through my employer. And I still work for them, so like you said fees may not kick in until I separate. There's a lot of finer details I'm still foggy on

tips^up

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Re: Leaving HSA Bank for Fidelity HSA
« Reply #17 on: May 09, 2019, 09:46:39 AM »
I transferred mine to Lake Michigan Credit Union HSA.  Recently (this year?), they started allowing HSA investments.  You must keep $1000 in the regular HSA (which still has a small interest %, better than nothing), but anything more than that $1k can be put in investments, including many Vanguard Admiral options.

Right now mine are allocated 25% each in:
Vanguard 500 Index Admiral
Vanguard Developed Mkts Idx Ad
Vanguard Mid Cap Index Admiral
Vanguard Small Cap Index Adm

No fees.  They send a debit card for access to funds.  However, with investment options like this, I plan (health pending...) to pay out of pocket and let these funds grow.  Tax free in, tax free growth, tax free withdrawl.  With investment options like this and no fees, it seems like an outstanding deal to me.  Wish my employer would offer the HSA again (they funded half of the amount I now have).