Author Topic: moving employers - new one does not have HSA, what to do?  (Read 4098 times)

mrtimo

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moving employers - new one does not have HSA, what to do?
« on: June 13, 2014, 01:29:38 PM »
After two years I have nearly 6k in an employer-sponsored HSA. My new employer does not sponsor an HSA.

It seems that there are more fees than normal if you are not actively contributing to the HSA, which I likely will not do in the next several years.

My current custodian charges 4$ a month. From what I have seen there are others that charge 2$ or 4$.

Has anyone been in a similar situation (having an HSA, but not actively contributing to it)? Where is the best place? ELF CU? HSA Bank? Thx.

milesdividendmd

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Re: moving employers - new one does not have HSA, what to do?
« Reply #1 on: June 13, 2014, 02:07:57 PM »
If you leave 4925$ in the hsa bank savings account there are no fees (assuming you invest only in fee free etfs with the remainder of your money)



Numbers Man

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Re: moving employers - new one does not have HSA, what to do?
« Reply #2 on: June 13, 2014, 02:26:45 PM »
If you leave 4925$ in the hsa bank savings account there are no fees (assuming you invest only in fee free etfs with the remainder of your money)

^ Not true. I pay $3 a month whether I have $1,000 or $10,000 in the account. I have the majority of my HSA assets invested in a S & P Fund. I have read a lot of articles where the authors believe that HSA's will become more commonplace since employers see it as a way to lower their healthcare expenses too. So hang in there, your employer will probably come around. It also doesn't hurt to present some research on HSA's to whoever handles the benefits at your workplace.

 I won't even pretend to understand any of the rules of Obamacare, but aren't HSA's available using Obamacare? You may be able to switch to Obamacare and dump your employer's plan if that makes economic sense for you.

milesdividendmd

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Re: moving employers - new one does not have HSA, what to do?
« Reply #3 on: June 13, 2014, 02:37:14 PM »
You are mistaken numbers man. You must have 4925 in your HSA account. Not in your linked brokerage account.

See here,

http://www.hsabank.com/~/media/files/fees_s1

AZ





Numbers Man

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Re: moving employers - new one does not have HSA, what to do?
« Reply #4 on: June 13, 2014, 02:49:04 PM »
@milesdividend - Your first post was ambiguous. I read it as you were just saying a HSA savings account at a bank. I didn't read it as a name of a business, HSA Bank with an applicable link. If you take the $4,925 minus the $1,500 I have in the cash part of my account and invest the difference ($3,425) in a S & P INDEX you make about $274 a year if you earn 8%. I rather be under the minimum $4,925 and earn more than enough to cover the $36 fees every year. The reason I keep that money in cash is because I'm required to keep a minimum of $1,000 if I want to invest. I keep a little bit more in there to cover the fees in the future.

Dezrah

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Re: moving employers - new one does not have HSA, what to do?
« Reply #5 on: June 13, 2014, 03:43:29 PM »
OP, it's not clear what your intentions are for this money.  Are you keeping it as a tax-advantaged account to be used as normal retirement income when you are 65+ or will you use it as you incur medical expenses?

We use BenefitWallet https://mybenefitwallet.com/ at my work.  They charge $5/month for a balance of less than $1,000 and nothing if you're above that.  Any amounts in the investment house tied to it are charged a flat $2.70/month regardless of balance.  We are actively contributing, however, so I'm not sure how much is additionally covered by my employer.

milesdividendmd

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Re: moving employers - new one does not have HSA, what to do?
« Reply #6 on: June 13, 2014, 04:44:52 PM »
@milesdividend - Your first post was ambiguous. I read it as you were just saying a HSA savings account at a bank. I didn't read it as a name of a business, HSA Bank with an applicable link. If you take the $4,925 minus the $1,500 I have in the cash part of my account and invest the difference ($3,425) in a S & P INDEX you make about $274 a year if you earn 8%. I rather be under the minimum $4,925 and earn more than enough to cover the $36 fees every year. The reason I keep that money in cash is because I'm required to keep a minimum of $1,000 if I want to invest. I keep a little bit more in there to cover the fees in the future.

Fair enough, its easy to misunderstand a post on a message board.  I do it myself.

But just to be specific, the monthly fees through HSA bank if you do not hold 4925$ in the bank are about 66 bucks a year not $36  (3 dollars for investment account and 2.50 for monthly maintenance fee.)

I agree with investing the whole amount, by the way, though this does make the expense ratio on $6550 1 % plus the expense ratios of the ETFs.  Ouch!

mrtimo

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Re: moving employers - new one does not have HSA, what to do?
« Reply #7 on: June 18, 2014, 08:58:49 PM »
Wow. Thanks for the feedback!

My intent is to keep the money for retirement, and perhaps on occasion use it for very small expenses.

It seems like my two best options are these:
1. Leave $4925 in a non-interest bearing account at HSA bank and invest the rest (~$1k) in a fee-free ETF.
2. Put $1,000 in a basically-zero interest bearing account at MyBenefitWallet and invest the rest (~$5k) in a low-fee ETF or similar.

This is assuming both of these places will take me without me having a HD plan.

Am I thinking right on this?

milesdividendmd

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Re: moving employers - new one does not have HSA, what to do?
« Reply #8 on: June 18, 2014, 09:31:09 PM »
I think long term you will do well putting it all in HSA bank and investing the whole amount in fee free ETFs.

If you want to invest the 4925 in HSA bank, you will earn interest on that amount (<1%) and invest the rest Fee free.

Here is a nice review of many of your options...

http://whitecoatinvestor.com/choosing-an-hsa-provider/

Enjoy




mrtimo

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Re: moving employers - new one does not have HSA, what to do?
« Reply #9 on: June 19, 2014, 08:50:34 AM »
Thanks! This is great!

GregO

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Re: moving employers - new one does not have HSA, what to do?
« Reply #10 on: June 19, 2014, 11:20:05 AM »
This is assuming both of these places will take me without me having a HD plan.

Just one clarification to add.  There is no restriction on OWNING a HSA, the only restrictions are for CONTRIBUTING to an HSA.  So any HSA provider will gladly accept the transfer of your existing HSA account no matter what, but you will be restricted from contributing any additional money into it unless you have a qualified healthcare plan.