HSA Rollover to Optum Bank

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cricket49
Posts: 281
Joined: Sun Apr 05, 2015 4:14 pm

HSA Rollover to Optum Bank

Post by cricket49 »

I am slowly trying to clean up our finances and transfer money into Vanguard.

Currently we have two HSA accounts with Health Equity where a large portion is invested in
very limited funds with high expenses. No great options available. I read a post about Optum Bank where
you can invest in Vanguard funds and am considering a rollover. Trying to research everything before making
the move to ensure there are no hidden fees or expenses.

According to the rep at Optum the funds will be transferred from Health Equity and deposited into a
general account where we will able to start investing the money.

We have never used the HSA money and are using it for investment purposes. Also, to pay some Medicare
premiums after we turn 65.

I am going to contact Health Equity and get any fee and expense details before doing the rollover.

Has anyone done this? Any advice?

Thanks everyone.
Expect the best. Prepare for the worst.
AWH_CPA
Posts: 247
Joined: Tue Jan 20, 2015 5:44 pm

Re: HSA Rollover to Optum Bank

Post by AWH_CPA »

My employer HSA is at Health Equity. There are the "free to invest in funds" which have high ERs, but they also have their "Investor Choice" funds. They carry an extra charge of 40 bps a year but you can invest in DFA and Vanguard doing that. Not as great as simply getting Vanguard directly but still worth noting.
classicjazzfan
Posts: 144
Joined: Tue Mar 10, 2015 8:44 pm

Re: HSA Rollover to Optum Bank

Post by classicjazzfan »

Cricket49:

As the original poster and as a satisfied customer of Optum Bank, I would nonetheless acknowledge that many forum members use HSA Administrators, HSA Bank, and several other HSA providers for investing HSA funds. You might wish to investigate them before making a final choice. These links will identify other HSA options:

http://www.hsarates.com/

https://www.depositaccounts.com/savings ... rue|PA|Apy desc

For people wishing simply to earn a decent amount of interest on some or all of their HSA money (and not invest it), I have been very happy with the 2% APY and $0 fees of Lake Michigan Credit Union: https://www.lmcu.org/

Finally, the Bogleheads' HSA wiki is quite informative:

http://www.bogleheads.org/wiki/Health_savings_account
classicjazzfan
Posts: 144
Joined: Tue Mar 10, 2015 8:44 pm

Re: HSA Rollover to Optum Bank

Post by classicjazzfan »

Cricket49:

I'm sorry. I neglected to address your final pair of questions in my previous post. I have moved money from one HSA provider to another several times over the years. It's an easy process but it can take some time to complete. The most important advice I would offer would be to know the crucial differences between what is properly termed a "rollover" (and the various methods of effecting one) and what is properly termed a "trustee-to-trustee transfer." The terms are not synonymous. One method or the other is preferable depending on the circumstances. I've used both. Be aware too that some providers will charge a fee for the privilege of moving your own HSA money. Good luck.
supertreat
Posts: 333
Joined: Sat Nov 03, 2007 11:57 pm

Re: HSA Rollover to Optum Bank

Post by supertreat »

I've been happy with bancorp HSA. Very low minimum to avoid fees ( think 1500 or 2000$) and $8 trades for fidelity spartan funds.
Assets - Liabilities = Equity + (Income - Expenses)
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