HSA Bank and Trustee to Trustee Fee question for FEHB

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Helo80
Posts: 752
Joined: Sat Apr 29, 2017 8:47 pm

HSA Bank and Trustee to Trustee Fee question for FEHB

Post by Helo80 » Tue Nov 06, 2018 5:47 pm

Good afternoon.

I know that many of y'all with HSA's use HSA Bank, and I would great appreciate your insight and to the point advice. I am trying to make sense of HSA Bank's fee schedule, but I don't know how it applies to my specific situation such that it works with HSA Bank's and IRS rules.

BLUF: I am very happy with Payflex HSA as it does everything I want it to do (automatic sweep of HSA monies to Vanguard S&P500 with 0 account fees). I am not looking to upset this by moving from Aetna HDHP to GEHA HDHP though FEHB (federal employee health benefit)

DETAILS:
==================================

Background:
- I am considering moving my healthcare from Aetna HDHP (uses Payflex HSA) to GEHA HDHP (uses HSA Bank)

Current Payflex HSA
- $0 annual fees
- Weekly, my account balance is swept and invested in Vanguard S&P500 Admiral funds
- I max out $3450 TY2018 IRS limit and things work swimmingly

Proposed HSA Bank HSA
- $2.50 monthly fee
- Would need $1000 min balance to invest with TD Ameritrade with HSA Bank
- No intention of migrating my primary HSA from Payflex to HSA Bank; Payflex does everything I want it to do
- GEHA does a pass through of $900/annually to HSA Bank
- I think I could contribute the remaining $2600 still to Payflex ($3500 - $900 pass through = $2600) and still get my money swept into VFIAX

Questions:
1. Does HSA Bank charge fees to do a HSA trustee to HSA trustee transfer? (e.g. HSA Bank to Payflex)
http://www.hsabank.com/hsabank/members/ ... -hsa-funds
Per the link above, it says: "HSA to HSA transfers are free and can be completed without limit " So, is this accurate to what I am trying to do?
- Is it possible that every time I get my HSA pass through of $75 ( $900 /annual divided by 12 mos) to just move that money to Payflex?
- For my needs, I don't see the logic behind building up a balance at HSA Bank when Payflex does everything I want it to.


2. Is there anything else I need to be concerned about?
- As you can imagine, I want to maximize investments and keep fees at a minimum.
- I know GEHA is popular on BH, and it looks attractive in 2019 for my needs.

Thank you for your help!!! I think that I have provided enough info for y'all to evaluate my decision making process.

edit: corrected thread title

nps
Posts: 588
Joined: Thu Dec 04, 2014 10:18 am

Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by nps » Wed Nov 07, 2018 5:27 am

If you have GEHA there are no monthly fees or minimum balance requirements for investment accounts with HSA Bank/TD Ameritrade.

There should not be fees for trustee transfers but it is a paper process, don't think you want to do that every month.

motorcyclesarecool
Posts: 552
Joined: Sun Dec 14, 2014 7:39 am

Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by motorcyclesarecool » Wed Nov 07, 2018 5:55 am

Re: PayFlex- keep in mind that once you leave Aetna (or MHBP- they also use PayFlex) they will charge you fees to keep the account open.

I’m giving serious thought to switching from GEHA to MHBP for the higher premium pass-through as well as set & forget investment contributions. MHBP also uses the Aetna network.

HSABank / TD Ameritrade works, but needs lots of babysitting to avoid cash being swept to TDA only to sit there. I’m logging on 3-4 times per month to buy ETFs. It’s annoying.
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.

Helo80
Posts: 752
Joined: Sat Apr 29, 2017 8:47 pm

Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by Helo80 » Wed Nov 07, 2018 4:24 pm

nps wrote:
Wed Nov 07, 2018 5:27 am
If you have GEHA there are no monthly fees or minimum balance requirements for investment accounts with HSA Bank/TD Ameritrade.

That's good to know --- thanks for the info!

Helo80
Posts: 752
Joined: Sat Apr 29, 2017 8:47 pm

Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by Helo80 » Wed Nov 07, 2018 4:27 pm

motorcyclesarecool wrote:
Wed Nov 07, 2018 5:55 am
Re: PayFlex- keep in mind that once you leave Aetna (or MHBP- they also use PayFlex) they will charge you fees to keep the account open.
I was unaware of that. Thanks for the info!
motorcyclesarecool wrote:
Wed Nov 07, 2018 5:55 am
I’m giving serious thought to switching from GEHA to MHBP for the higher premium pass-through as well as set & forget investment contributions. MHBP also uses the Aetna network.

HSABank / TD Ameritrade works, but needs lots of babysitting to avoid cash being swept to TDA only to sit there. I’m logging on 3-4 times per month to buy ETFs. It’s annoying.

Same here after reviewing your comment and looking at OPM's site. Personally, if MHBP uses Aetna and Payflex (and they do per the benefit guides), I'm more inclined to go MHBP over GEHA as well. As I mentioned in my OP, a strong benefit of Payflex IMHO is that set&forget investments. Once a week, everything above $1000 gets swept into VFIAX whether it's a $30 dividend or payroll deductions. Have to log on several times a month would get old, and having to buy ETFs in whole units is a pain. My ER with Payflex is 4 bps.

motorcyclesarecool
Posts: 552
Joined: Sun Dec 14, 2014 7:39 am

Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by motorcyclesarecool » Wed Nov 07, 2018 5:29 pm

OP, what attracted you to GEHA? The lower premium?
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.

Helo80
Posts: 752
Joined: Sat Apr 29, 2017 8:47 pm

Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by Helo80 » Wed Nov 07, 2018 7:48 pm

motorcyclesarecool wrote:
Wed Nov 07, 2018 5:29 pm
OP, what attracted you to GEHA? The lower premium?

Lower biweekly premium, increased HSA pass-through ($100), and that in general, FEHB beneficiaries on BH gravitate towards GEHA. In the other HSA thread, you can see where several mention that they are happy with GEHA.

That being said, MHBP seems attractive, if not more so, than GEHA right now, and I'm hoping the more educated BH folks can chime in on it. I use very little healthcare and have enough to cover the deductible.

Post Reply