HSA after leaving job

[MinouMinou]

Hi Mustachians,
Is it generally necessary or recommended to move HSA account after leaving an employer?

[MDM]

Depends on how it compares with a good HSA account such as a Health Savings Account at Fidelity.

[hooplady]

I agree, it depends. Once you leave your employer you'll realize that they were probably paying a monthly fee for the account and this is your responsibility now. If you can find a provider with a lower monthly fee and options that you like, move it.

[MinouMinou]

Got it! Will look into fees. Thank you.

[JLee]

I agree, it depends. Once you leave your employer you'll realize that they were probably paying a monthly fee for the account and this is your responsibility now. If you can find a provider with a lower monthly fee and options that you like, move it.

That's why I moved mine to Fidelity.

[SweatingInAR]

My previous employer used Fidelity, and I still have the account.

My current employer uses "Tri-ad" whose interface is annoying and requires $1k in cash at all times instead of invested. Whenever I decide to leave my current job, that HSA will be moved to Fidelity as soon as my last paycheck clears.

Things to consider:

• Total market fund expense ratio
• Web interface
• Having to maintain one more account and password
• Maintenance fees
• Minimum balance to invest

[MinouMinou]

Another couple of questions…since most of my HSA funds are invested (Optum, in Vanguard funds) does it have to be converted to cash before transfer? Can investments transfer? If not, am I taxed at all when rolling over? If must liquidate first, I assume that I can re-invest once with Fidelity. Finally, do I initiate this from Fidelity side? Wait until I separate from service? Or have some people done partial transfers?

[MDM]

Another couple of questions…since most of my HSA funds are invested (Optum, in Vanguard funds) does it have to be converted to cash before transfer? Can investments transfer? If not, am I taxed at all when rolling over? If must liquidate first, I assume that I can re-invest once with Fidelity. Finally, do I initiate this from Fidelity side? Wait until I separate from service? Or have some people done partial transfers?

HSA to HSA transfers are not taxed.  You'll probably need to liquidate and transfer cash, but do check with Fidelity and have them help you.  Working with the receiving brokerage on any transfer is a good idea.

See How to consolidate your HSAs | Fidelity for more.