Author Topic: Recomended HSA providers?  (Read 1159 times)

NorCal

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Recomended HSA providers?
« on: December 02, 2020, 04:11:30 PM »
For the first time ever, we are foregoing employer provided health insurance and going with the "MarketPlace" plans. 

After the pseudo-lobotomy that is researching our cluster-fuck of a health insurance market (Colorado), we've narrowed it down to several options.

Interestingly, there are zero plans that are marketed as being HSA eligible, but many have high enough deductibles to qualify for the IRS guidance to allow for HSA's.

Since there are no HSA's marketed alongside these plans, can anyone recommend any HSA providers?

Has anyone else run into this issue where you have a plan that should qualify for an HSA, but it isn't marketed as a high-deductible plan?  I feel like I'm missing something that disqualifies these plans, but I can't figure out what it is.

MustachioedPistachio

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Re: Recomended HSA providers?
« Reply #1 on: December 02, 2020, 04:42:57 PM »
I use Lively. They are linked up with TD Ameritrade for the investment piece. No ongoing maintenance fees, no investment minimums, no complaints!

Has anyone else run into this issue where you have a plan that should qualify for an HSA, but it isn't marketed as a high-deductible plan?  I feel like I'm missing something that disqualifies these plans, but I can't figure out what it is.

Can't speak to this piece, but I'm sure if you've researched the IRS guidance and the plans fall under these, you should be good to go.

NorCal

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Re: Recomended HSA providers?
« Reply #2 on: December 02, 2020, 05:07:47 PM »
Thank you.  I will look them up!

netloc

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Re: Recomended HSA providers?
« Reply #3 on: December 02, 2020, 05:30:49 PM »
Fidelity has worked out really well for me. I definitely recommend them, especially if you already have another account there (checking, credit card, investment, 401k).

MDM

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Re: Recomended HSA providers?
« Reply #4 on: December 02, 2020, 07:15:35 PM »
Interestingly, there are zero plans that are marketed as being HSA eligible, but many have high enough deductibles to qualify....
Fidelity may be the best choice for an HSA, but first be sure you will be eligible to contribute.  Usually, an HSA-qualifying HDHP will very clearly advertise the fact.

That the ones you find do not so advertise should be a warning flag.  You might ask the plan provider directly whether the plan qualifies, and if they will provide confirmation in writing.

uniwelder

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Re: Recomended HSA providers?
« Reply #5 on: December 03, 2020, 05:32:40 AM »
I'm also a fan of Fidelity for my HSA.  It merges seamlessly with my retirement accounts and no fees.

Firepants

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Re: Recomended HSA providers?
« Reply #6 on: December 03, 2020, 09:03:29 AM »
HSA compatible plans have also upper deductible limits.

https://www.irs.gov/publications/p969#en_US_2019_publink1000204025


I also use Fidelity for my HSA.
« Last Edit: December 03, 2020, 09:16:03 AM by Firepants »

NorCal

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Re: Recomended HSA providers?
« Reply #7 on: December 28, 2020, 07:05:39 AM »
I figured I'd provide an update for those who posted before:

1. It turns out the marketplace plans were not HSA compliant, as I had misread the upper deductible limits as minimums and not maximums.  There are zero HSA qualified marketplace plans in my city.  The clearly designed the plans to be just outside the HSA qualification guidelines for some reason.

2. I went straight to the providers website (Kaiser), and they sold an HSA compliant plan that was almost identical to the marketplace plan.  I went with this option, as we don't qualify for subsidies.

3. We're ending up with an HSA through Optum.  It's the same provider my wife's employer uses.  It will make logistics easier if we ever go back.  I'm generally impressed with their UI and general usability.

Psychstache

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Re: Recomended HSA providers?
« Reply #8 on: December 28, 2020, 08:57:18 AM »
Fidelity has worked out really well for me. I definitely recommend them, especially if you already have another account there (checking, credit card, investment, 401k).

+1

sonofsven

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Re: Recomended HSA providers?
« Reply #9 on: January 01, 2021, 08:59:40 AM »
Lively for me, I use their phone app to transfer funds from my checking account, this takes a few days for the transfer to show up.
Then using the TD Ameritrade app which is synced to my Lively account i initiate a transfer from Lively to TD. This also takes a few days to show in TD account.
Finally I purchase Vanguard VTI shares from the funds in the TD account.
« Last Edit: January 01, 2021, 09:48:31 AM by sonofsven »

Queen Frugal

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Re: Recomended HSA providers?
« Reply #10 on: January 01, 2021, 09:10:10 AM »
I figured I'd provide an update for those who posted before:

1. It turns out the marketplace plans were not HSA compliant, as I had misread the upper deductible limits as minimums and not maximums.  There are zero HSA qualified marketplace plans in my city.  The clearly designed the plans to be just outside the HSA qualification guidelines for some reason.

2. I went straight to the providers website (Kaiser), and they sold an HSA compliant plan that was almost identical to the marketplace plan.  I went with this option, as we don't qualify for subsidies.

3. We're ending up with an HSA through Optum.  It's the same provider my wife's employer uses.  It will make logistics easier if we ever go back.  I'm generally impressed with their UI and general usability.

No HSA qualified plans in your city? That is just WRONG! I suspect it violates the ACA rules. But if you don't qualify for the subsidies, you'll be happier buying a plan directly from a carrier anyway. I did that for a few years - mostly because I didn't understand what MAGI was and that I could easily qualify for subsidies (oops!). The service you receive by being able to deal with Kaiser directly will be much better.

As for providers, it's interesting that so many of you use Fidelity. I am with HSA Bank and I am happy with them. I have to keep a lot in cash to avoid high fees but I'm okay with that. I tend to do that anyway so that I can pay my deductible without liquidating any holdings.

Psychstache

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Re: Recomended HSA providers?
« Reply #11 on: January 01, 2021, 09:41:31 AM »
I figured I'd provide an update for those who posted before:

1. It turns out the marketplace plans were not HSA compliant, as I had misread the upper deductible limits as minimums and not maximums.  There are zero HSA qualified marketplace plans in my city.  The clearly designed the plans to be just outside the HSA qualification guidelines for some reason.

2. I went straight to the providers website (Kaiser), and they sold an HSA compliant plan that was almost identical to the marketplace plan.  I went with this option, as we don't qualify for subsidies.

3. We're ending up with an HSA through Optum.  It's the same provider my wife's employer uses.  It will make logistics easier if we ever go back.  I'm generally impressed with their UI and general usability.

No HSA qualified plans in your city? That is just WRONG! I suspect it violates the ACA rules. But if you don't qualify for the subsidies, you'll be happier buying a plan directly from a carrier anyway. I did that for a few years - mostly because I didn't understand what MAGI was and that I could easily qualify for subsidies (oops!). The service you receive by being able to deal with Kaiser directly will be much better.

As for providers, it's interesting that so many of you use Fidelity. I am with HSA Bank and I am happy with them. I have to keep a lot in cash to avoid high fees but I'm okay with that. I tend to do that anyway so that I can pay my deductible without liquidating any holdings.

I actually transferred out of HSAB to fidelity. I don't use mine so having the cash was a drag, plus the fidelity interface is far superior to HSAB IMO.