Author Topic: Company changed HSA provider  (Read 1443 times)

FiguringItOut

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Company changed HSA provider
« on: November 20, 2018, 09:17:55 AM »
My company changed HSA provider from UMB bank to Optum bank.

They are paying the fee UMB is charging to transfer funds out of UMB and into Optum.
I have about $7,000 invested plus $1,000 cash at UMB.  My UMB investment is in VTSAX and VFINX.
With the market being down lately, I am wondering if I should make the transfer now or wait.  To make the transfer, I'll have to sell everything I have invested at UMB.  Once it is transferred to Optum, I can invest it again, except Optum requires $2,100 to keep in cash. Before the transfer, I paid $2.50/month for the investment account at UMB and the was no fee for the cash portion.  But now that my company no longer sponsors UMB, I think the monthly fee will go up, but I am not sure how much it will be.  I also don't know yet what monthly fee will be at Optum, but I don't have a choice there, just taking what company offers.

In addition, I have old HSA account at Payflex.  $16,000 invested in VFIAX and $1,200 in cash.  I pay $5/month fee on that account.  Thinking of consolidating it also with new Optum account, but once again, with the market down, should I wait?  And I don't know how much they will charge me to close and transfer out the account.

What would you do?

ETA:  I wouldn't be able to invest in Optum account until the cash balance reaches $2,100.  And I only contribute $500/month to HSA account.  This will go down further starting in January (from family to individual limit).  Optum also has VTSAX available as an investment option.
« Last Edit: November 20, 2018, 09:29:13 AM by FiguringItOut »

FiguringItOut

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Re: Company changed HSA provider
« Reply #1 on: November 25, 2018, 10:45:39 AM »
No opinions?

bacchi

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Re: Company changed HSA provider
« Reply #2 on: November 25, 2018, 12:00:48 PM »
Open an HSA at Fidelity and transfer everything at UMB to Fidelity.

Transfer the Payflex HSA to Fidelity as well.

Start over at Optum bank with $0. Once per rolling year, do a cash rollover to Fidelity.

FiguringItOut

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Re: Company changed HSA provider
« Reply #3 on: November 25, 2018, 12:19:43 PM »
Open an HSA at Fidelity and transfer everything at UMB to Fidelity.

Transfer the Payflex HSA to Fidelity as well.

Start over at Optum bank with $0. Once per rolling year, do a cash rollover to Fidelity.
Can you please add why you prefer this plan?

Also, are we allowed to do cashouts without closing the account?

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FiguringItOut

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Re: Company changed HSA provider
« Reply #4 on: November 25, 2018, 12:23:10 PM »
Open an HSA at Fidelity and transfer everything at UMB to Fidelity.

Transfer the Payflex HSA to Fidelity as well.

Start over at Optum bank with $0. Once per rolling year, do a cash rollover to Fidelity.
Also, the big question is to do this now, I.e. sell what I have at a loss,  or wait for market to improve?

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bacchi

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Re: Company changed HSA provider
« Reply #5 on: November 25, 2018, 12:29:04 PM »
Open an HSA at Fidelity and transfer everything at UMB to Fidelity.

Transfer the Payflex HSA to Fidelity as well.

Start over at Optum bank with $0. Once per rolling year, do a cash rollover to Fidelity.
Can you please add why you prefer this plan?

Fidelity is a $0 fee HSA with first dollar investment (there's no cash minimum to start investing). You also get access to Fidelity's very low cost index funds.

Quote
Also, are we allowed to do cashouts without closing the account?

That's a question for Optum and their paperwork. You could always do a cash rollover with all but $100. If the money is sent to you, and you deposit it within 60 days to another HSA, Optum doesn't know the difference.

Again, a rollover can only be done once per rolling 12 months. You can do as many trustee-to-trustee transfers as you wish.

bacchi

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Re: Company changed HSA provider
« Reply #6 on: November 25, 2018, 12:31:54 PM »
Also, the big question is to do this now, I.e. sell what I have at a loss,  or wait for market to improve?

Yeah, I'm dealing with the same question as I combine HSAs. Some brokerages may transfer in-kind, which solves the issue, but some will cash out first.

One of my HSAs has a wrap fee. If I want it out of there, I have to accept the ~1 week risk of being out of the market.

SKL-HOU

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Re: Company changed HSA provider
« Reply #7 on: November 25, 2018, 08:01:08 PM »
If you sell and invest with the new plan right away, you should be almost back to where you are assuming market doesn't do something crazy in that short time. Or maybe my thought process is wring.