Is $3/mo reasonable for HSA account maintenance fee?

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Is $3/mo reasonable for HSA account maintenance fee?

Postby jbreittling » Thu Jul 25, 2013 8:14 pm

I left my employer last year to go out on my own. I was able to stay with my HSA, however, now that I'm no longer tied to my former employer, I am charged a monthly account maintenance fee of $3.

This HSA allows me to invest in mutual funds where I'm not charged a fee to invest my money, but I am on the hook for the funds expense fees. I've allocated 100% of my money to VFINX, 0.17%. I'm avoiding the other funds due to their high expense fees - next lowest is .77%.

Anyway, I'm more curious about whether that $3 monthly account maintenance fee is reasonable or not.
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby gerrym51 » Thu Jul 25, 2013 8:23 pm

search here and see


http://www.vimo.com/hsa/
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby pteam » Thu Jul 25, 2013 8:27 pm

See if they waive the fee when you have a certain amount in your account, eg: $2500
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby jbreittling » Thu Jul 25, 2013 8:42 pm

gerrym51 - Perfect...thank you. I was googling and not coming up with much luck. I think I've found an ok place to invest and hope I never need to access it. knock on wood. Thanks again.

pteam - I did inquire - no such luck. No avoiding it unfortunately.
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby gerrym51 » Thu Jul 25, 2013 8:54 pm

jbreittling wrote:gerrym51 - Perfect...thank you. I was googling and not coming up with much luck. I think I've found an ok place to invest and hope I never need to access it. knock on wood. Thanks again.

pteam - I did inquire - no such luck. No avoiding it unfortunately.



your welcome :mrgreen:
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby rfburns » Thu Jul 25, 2013 10:53 pm

$36 per year? That's cheap in my opinion to own John Bogle's favorite fund.
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby letsgobobby » Thu Jul 25, 2013 11:03 pm

No it's not reasonable. Problem is all the other alternatives are even less reasonable. On a $6450 annual family contribution, it's a 0.5% load. Blech.
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby rfburns » Thu Jul 25, 2013 11:16 pm

letsgobobby wrote:No it's not reasonable. Problem is all the other alternatives are even less reasonable. On a $6450 annual family contribution, it's a 0.5% load. Blech.

Check your math. 0.005% =$32.25 per annum of $6450 correct?
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby wander » Fri Jul 26, 2013 12:03 am

No, it's not reasonable. That was why I transferred the money from old HSA account to my current one to avoid the fee.
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby letsgobobby » Fri Jul 26, 2013 12:35 am

rfburns wrote:
letsgobobby wrote:No it's not reasonable. Problem is all the other alternatives are even less reasonable. On a $6450 annual family contribution, it's a 0.5% load. Blech.

Check your math. 0.005% =$32.25 per annum of $6450 correct?


I estimated that 1% of $6450 is $64.50. And $3 x 12 mo = $36. So 0.5% is what I'm getting. I think you need to move your decimal point.
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby Texas hold em71 » Fri Jul 26, 2013 12:38 am

I am being charged this in my employer's HSA and I STILL work there. So irritating!
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby Rainier » Fri Jul 26, 2013 6:40 am

If you made contributions via payroll deductions it's worth the fee as you are saving yourself from paying the payroll tax.
- Bill
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby letsgobobby » Fri Jul 26, 2013 6:53 am

Rainier wrote:If you made contributions via payroll deductions it's worth the fee as you are saving yourself from paying the payroll tax.


You are saving the Medicare tax, but you only save the SS tax if you don't eventually exceed the SS wage base of $113,700.
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby JoMoney » Fri Jul 26, 2013 6:55 am

I feel your pain. Account "Administration Fees" on top of the funds expenses are ridiculous. The 401k administrator for my work plan takes around $50 a year for their administration and record keeping services. Yes, as a percentage of assets in the account it's a negligible amount, but I still don't like it.
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby englishgirl » Fri Jul 26, 2013 10:49 am

No, it's not reasonable (in my opinion), but it is normal. I HATE paying the $3 fee in my HSA! Can't wait until my balance gets big enough again to have the fee waived - I keep looking around for better options, but where I am has a lower balance for waiving fees than many other places AND they charge a fee to close the account, so it's not worth my while to switch yet. Sigh.

On the one hand, I'm annoyed at myself that I spent my HSA money on braces so I have to pay fees again. On the other hand...I have pretty teeth now! So it was worth it. :mrgreen:
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby Phineas J. Whoopee » Fri Jul 26, 2013 2:21 pm

Speaking only of what I know, NASA Federal Credit Union has a no-monthly-fee HSA. The present investment options aren't great (savings at 15 bps, 6-month CD at 30, 12-month at 35) but for smaller balances and in our current interest rate environment the lack of fee dominates the equation.

They charge $35 to close the account. Compared to $3 per month that's just less than one year's monthly fees.

Anyone can become a member by joining an organization which charges nothing.

PJW
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby rfburns » Fri Jul 26, 2013 6:49 pm

letsgobobby wrote:
rfburns wrote:
letsgobobby wrote:No it's not reasonable. Problem is all the other alternatives are even less reasonable. On a $6450 annual family contribution, it's a 0.5% load. Blech.

Check your math. 0.005% =$32.25 per annum of $6450 correct?


I estimated that 1% of $6450 is $64.50. And $3 x 12 mo = $36. So 0.5% is what I'm getting. I think you need to move your decimal point.

Pardon me bobby. You are correct. I was failing to convert back to percentage. My bad.
So to the question of "reasonable" for the OP. I'll change my opinion to neutral. Free would be best, but a $36 fee in a year's time could pass muster if the offerings were desirable.
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby jbreittling » Fri Jul 26, 2013 7:42 pm

wander wrote:No, it's not reasonable. That was why I transferred the money from old HSA account to my current one to avoid the fee.


Ok, thanks.
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby abrash » Sat Jul 27, 2013 12:24 pm

$3 is annoying, but keep in mind it will become less significant a cost in relative terms as your balance grows. I pay around the same amount a month for my HSA. I was annoyed at first, but realized that it pays for things like mailing monthly statements, prospectuses, account website design, etc. After a few years of contributing, the fund expenses greatly dominate the account maintenance fee.

I would say the main thing is to not let small charges discourage you from having an HSA, making regular contributions, and, if possible, maxing out the account each year.
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Re: Is $3/mo reasonable for HSA account maintenance fee?

Postby Cash » Sat Jul 27, 2013 3:35 pm

Phineas J. Whoopee wrote:Speaking only of what I know, NASA Federal Credit Union has a no-monthly-fee HSA. The present investment options aren't great (savings at 15 bps, 6-month CD at 30, 12-month at 35) but for smaller balances and in our current interest rate environment the lack of fee dominates the equation.

They charge $35 to close the account. Compared to $3 per month that's just less than one year's monthly fees.

Anyone can become a member by joining an organization which charges nothing.

PJW


Alliant also has a no-fee HSA and pays .7% (higher until recently). Not much, but probably as good as it gets for low balances.

http://www.alliantcreditunion.org/depos ... thsavings/
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