HSA Maintenance Fees (Bank of America)

[onecoolcat]

I changed employers recently and no long have an HSA.  Previously I had an account with BOA and has happy with the fund option and fees.  Since I changed employers I have been charged $3.50 per month for account maintence since it's no longer considered employer sponsored.  I've called BOA twice about get a waiver on the fees to no avail.  I know I can transfer an HSA account to another bank but can I do so, while keeping the tax-advantage classification of the assets, even if I no longer have an HSA policy?  I have roughly $7.5k in there.  If so, does anyone recommend an broker/bank that has no fees and good investment options?  Thanks!

[Interest Compound]

My go-to HSA recommendation is Saturna, but even they charge a $12.50 a year inactivity fee. Let me know if you find anything cheaper :)

[DavidAnnArbor]

Elements Financial doesn't charge a monthly fee with a minimum of $2,500
Plus you can then invest above that minimum in Vanguard exchange traded index funds.
There are some caveats, it costs a fee to transfer the money over to the TD Ameritrade brokerage, but once there it's free.

[Heroes821]

For an individual HSA at discovery benefits I pay 3.00 per month in fees, but under my employer account it was 2.50 a month, but I couldn't change my limit to with dependents.

[Interest Compound]

Elements Financial doesn't charge a monthly fee with a minimum of $2,500
Plus you can then invest above that minimum in Vanguard exchange traded index funds.
There are some caveats, it costs a fee to transfer the money over to the TD Ameritrade brokerage, but once there it's free.

Even if you only assume a 5% return, keeping that $2,500 in cash represents a $125 yearly fee, or about $10 a month. This assumes you'd normally have no allocation to cash/bonds. If you'd normally have it in bonds, it's more like a $100 or so yearly fee, or an $8 monthly fee.

[DavidAnnArbor]

Does Saturna have a minimum amount you have to keep in cash ?

[kendallf]

I  have a stand alone one at HSA Bank; you just need to do a trustee to trustee transfer and you'll keep the tax advantaged status.  They have reasonable investment options through TD Ameritrade.  No fee if you keep a minimum of $5k un-invested.  That $5k is sort of a drag, but I have previously just figured that was my "emergency cash reserve" as I don't leave money in checking accounts elsewhere.

Now I have an account with Health Equity, and they have no fees with a $2k minimum un-invested.  However that account is tied to my current HDHP, and I haven't investigated whether they charge fees for stand-alone accounts.  My quick Google search doesn't turn up any mention of fees.

Edit: "•The monthly administration fee for Investor Choice funds is .033% (ex. 33 cents per $1,000) times the average daily balance of your investment in an Investor Choice fund for the billing cycle."

[MEJG]

We use optumhealth bank.  There is a $3 fee if the cash balance drops below $3,000.  You can invest any amount over $2,000.  So we just set up automatic sweeps into our investment account after $3,000.  No fees for transferring and access to Vanguard funds including VTSMX.  Investment fee is 0.03% of average balance.

I also like that the have a way to upload and organise health bills and receipts to keep track of what we *could* get reimbursed for.

[Interest Compound]

Does Saturna have a minimum amount you have to keep in cash ?

Nope.

[DavidAnnArbor]

Filling out the Saturna paperwork

[Interest Compound]

Filling out the Saturna paperwork

Here's some more info:

Vanguard Mutual Funds
=========================
Cost per trade: $24.95
Admiral Shares: Yes (*without* meeting the minimum 10k requirement).
Dividend re-invest: no charge
Inactivity fee (no trade within calendar year): $12.50


Fidelity Mutual Funds
=========================
Cost per trade: $14.95
Admiral Shares: Yes* (but *will* need to meet 10k requirement). The new website will give you an error right away if the order doesn't meet the fund's minimum.
Dividend re-invest: no charge
Inactivity fee (no trade within calendar year): $12.50


ETF (Vanguard & Fidelity)
=========================
Cost per trade: $14.95
Dividend re-invest: $1
Inactivity fee (no trade within calendar year): $25

Source: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=135513&start=50#p2526869

Fully fund the HSA each year with a single contribution, and your yearly fee will be either $14.95 or $24.95, depending on what you pick. Good luck!

[DavidAnnArbor]

Thank you

[onecoolcat]

My go-to HSA recommendation is Saturna, but even they charge a $12.50 a year inactivity fee. Let me know if you find anything cheaper :)

This may be the best.  Do the vanguard funds have the standard ER or is it inflated like my 401k, i.e. a total inflated rip-off!  :(

[Interest Compound]

My go-to HSA recommendation is Saturna, but even they charge a $12.50 a year inactivity fee. Let me know if you find anything cheaper :)

This may be the best.  Do the vanguard funds have the standard ER or is it inflated like my 401k, i.e. a total inflated rip-off!  :(

Standard ER.

[Radagast]

I've been following this issue and agree with Interest Compound that Saturna is likely the best option, provided you are adding your cash in as a single lump sum each year. Which is something of an issue because that implies you need $3,350 or $6,750 sitting around which will create its own drag if it takes more than say three months to build up.

That said I use my employer's Optum/Wells Fargo strange hybrid get-up because the difference isn't large enough to bother changing.

[onecoolcat]

If I no longer have a HDHP but have money in my HSA from when I did, will I run into any issues when I transfer the HSA funds to a new administrator (Saturna)?  I don't think there should be any issues, I just wouldn't be allowed to make further contributions while I dont have a HDHP.  I'll call Saturna in the morning to verify.  Anyone know from past experience?

[Highbeam]

Ha! I pay 4.50 per month for my BOA HSA. Still a good deal considering the service and investment options.

[DavidAnnArbor]

If I no longer have a HDHP but have money in my HSA from when I did, will I run into any issues when I transfer the HSA funds to a new administrator (Saturna)?  I don't think there should be any issues, I just wouldn't be allowed to make further contributions while I dont have a HDHP.  I'll call Saturna in the morning to verify.  Anyone know from past experience?

You can change trustees for your HSA account whenever you want, just make sure its a direct rollover from one trustee to the next.

[onecoolcat]

If I no longer have a HDHP but have money in my HSA from when I did, will I run into any issues when I transfer the HSA funds to a new administrator (Saturna)?  I don't think there should be any issues, I just wouldn't be allowed to make further contributions while I dont have a HDHP.  I'll call Saturna in the morning to verify.  Anyone know from past experience?

You can change trustees for your HSA account whenever you want, just make sure its a direct rollover from one trustee to the next.

Thanks!  Calling Saturna tomorrow (forgot to do it yesterday).

[Interest Compound]

I've been following this issue and agree with Interest Compound that Saturna is likely the best option, provided you are adding your cash in as a single lump sum each year. Which is something of an issue because that implies you need $3,350 or $6,750 sitting around which will create its own drag if it takes more than say three months to build up.

That said I use my employer's Optum/Wells Fargo strange hybrid get-up because the difference isn't large enough to bother changing.

If it takes something like 6-12 months to build up the $6750, just invest it in your taxable portfolio until then :) No need to keep it uninvested.