Author Topic: Surprised by HSA Fees  (Read 1617 times)

Lifeblood

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Surprised by HSA Fees
« on: November 28, 2014, 07:22:37 PM »
So I signed up for an HSA through my new employer and am little surprised by the fees. There is a monthly service charge of $2.95 which I think is paid for by my employer. If I leave my employer, than I am responsible for the fee, and it goes up to $3.25. I receive .15% interest for the funds in this account. It costs an extra $2.90 per month to utilize the investment platform (once I hit the minimum).
Based on things I have read recently about HSAs being all kinds of awesome, I had planned to max out the HSA and potentially leave funds there for a couple decades (unless I need them for medical costs sooner, of course). But since I doubt I will be with my employer more than a few years, I will be dealing with a monthly charge of $3.25+$2.90=$6.15 per month ($73.80 annually). Has anyone explored the implication of these fees for themselves as they relate to total performance? I would love to hear your thoughts. Help me think through this one!

Lifeblood

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Re: Surprised by HSA Fees
« Reply #1 on: November 28, 2014, 07:24:16 PM »
Just read this: Portability: Accounts move with you when you change medical plans, change employers or retire.

That's good news, anyway.

wtjbatman

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Re: Surprised by HSA Fees
« Reply #2 on: November 29, 2014, 03:46:07 PM »
HSAs do not have the same limits as 401ks. You can transfer your funds to a different provider at any time, even while you're still with your current employer.

RyeWhiskey

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Re: Surprised by HSA Fees
« Reply #3 on: November 29, 2014, 04:29:09 PM »
It appears as though you already understand why the HSA is such a valuable investment vehicle, so, in short, the benefits outweigh the drawbacks. HSA Bank is who I have my HSA with and I pay $66/year for the tax shelter. Over time the taxes saved on compounding interest will dwarf the fees.

Lifeblood

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Re: Surprised by HSA Fees
« Reply #4 on: November 29, 2014, 05:09:12 PM »
Thanks for the replies. Any sense of what minimum amount makes it worth it? For instance, if I happen to put in $10,000 over the course of 2-3 years, but end up using,say $9,000 for actual medical costs, would it be worthwhile to keep the account going with just $1,000 (assuming no further deposits)?