HSA Bank and Trustee to Trustee Fee question for FEHB

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Helo80
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HSA Bank and Trustee to Trustee Fee question for FEHB

Post by Helo80 »

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

Post by nps »

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

Post by motorcyclesarecool »

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.
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Helo80
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by Helo80 »

nps wrote: Wed Nov 07, 2018 4:27 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!
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by Helo80 »

motorcyclesarecool wrote: Wed Nov 07, 2018 4:55 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 4:55 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.
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motorcyclesarecool
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by motorcyclesarecool »

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

Post by Helo80 »

motorcyclesarecool wrote: Wed Nov 07, 2018 4:29 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.
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BogleFanGal
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by BogleFanGal »

resurrecting this thread in hopes OP can share what they ended up deciding. I like GEHA but not too thrilled with HSA/Ameritrade. Wondering how MHBP is working out for anyone who switched.
Cash
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by Cash »

BogleFanGal wrote: Sat Mar 09, 2019 5:42 pm resurrecting this thread in hopes OP can share what they ended up deciding. I like GEHA but not too thrilled with HSA/Ameritrade. Wondering how MHBP is working out for anyone who switched.
Many of us are using the new Fidelity HSA to house HSA funds and for payroll deposits (pass-through contributions still have to go to HSABank initially).
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by hoffdad »

Cash wrote: Sun Mar 17, 2019 3:14 pm Many of us are using the new Fidelity HSA to house HSA funds and for payroll deposits (pass-through contributions still have to go to HSABank initially).
I switched to GEHA's HDHP this year and am looking to also use Fidelity. I'm guessing skipping using HSA Bank is not an option. Can you speak to how much trouble it is, maybe some best practices, on transferring the pass-through contributions from HSA Bank to Fidelity? Thank you in advance!
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by tj »

hoffdad wrote: Wed Oct 16, 2019 10:10 pm
Cash wrote: Sun Mar 17, 2019 3:14 pm Many of us are using the new Fidelity HSA to house HSA funds and for payroll deposits (pass-through contributions still have to go to HSABank initially).
I switched to GEHA's HDHP this year and am looking to also use Fidelity. I'm guessing skipping using HSA Bank is not an option. Can you speak to how much trouble it is, maybe some best practices, on transferring the pass-through contributions from HSA Bank to Fidelity? Thank you in advance!
Just use HSA bank/TD Ameritrade for those contributions. I use TDA's cheapest 500 Index - SVSPX i believe.
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nps
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by nps »

hoffdad wrote: Wed Oct 16, 2019 10:10 pm
Cash wrote: Sun Mar 17, 2019 3:14 pm Many of us are using the new Fidelity HSA to house HSA funds and for payroll deposits (pass-through contributions still have to go to HSABank initially).
I switched to GEHA's HDHP this year and am looking to also use Fidelity. I'm guessing skipping using HSA Bank is not an option. Can you speak to how much trouble it is, maybe some best practices, on transferring the pass-through contributions from HSA Bank to Fidelity? Thank you in advance!
Correct, bypassing HSA Bank is not an option. Note that the post you quoted was made before all these brokerages moved to zero percent commissions for all trades. Why complicate your life transferring to Fidelity when you already have to use HSA Bank and can more easily use TDA?
motorcyclesarecool
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by motorcyclesarecool »

I have HSA Bank and Fidelity HSAs. I found it very easy to push funds from HSA Bank to TD Ameritrade, and then do an ACATS transfer to Fidelity. Very easy process. No paper needed from me.
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.
Cash
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by Cash »

nps wrote: Thu Oct 17, 2019 5:46 am
hoffdad wrote: Wed Oct 16, 2019 10:10 pm
Cash wrote: Sun Mar 17, 2019 3:14 pm Many of us are using the new Fidelity HSA to house HSA funds and for payroll deposits (pass-through contributions still have to go to HSABank initially).
I switched to GEHA's HDHP this year and am looking to also use Fidelity. I'm guessing skipping using HSA Bank is not an option. Can you speak to how much trouble it is, maybe some best practices, on transferring the pass-through contributions from HSA Bank to Fidelity? Thank you in advance!
Correct, bypassing HSA Bank is not an option. Note that the post you quoted was made before all these brokerages moved to zero percent commissions for all trades. Why complicate your life transferring to Fidelity when you already have to use HSA Bank and can more easily use TDA?
Correct. I now plan to leave pass-through funds at TDA since I can purchase any ETF there for free. I’ll still deposit my own funds in Fidelity since I already have that set up.
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by tomwood »

motorcyclesarecool wrote: Wed Nov 07, 2018 4:55 am Re: PayFlex- keep in mind that once you leave Aetna (or MHBP- they also use PayFlex)
Does PayFlex, with MHBP, automatically invest the pass through HSA money into a chosen account?
tomwood
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by tomwood »

BogleFanGal wrote: Sat Mar 09, 2019 5:42 pm resurrecting this thread in hopes OP can share what they ended up deciding. I like GEHA but not too thrilled with HSA/Ameritrade. Wondering how MHBP is working out for anyone who switched.
I’m interested in an answer to this too
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by tomwood »

Helo80 wrote: Wed Nov 07, 2018 6:48 pm

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.
What did you decide in 2018 Open season?
May I ask how you’ve kept or changed your decision for 2019’s Open season (now)?
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by Helo80 »

tomwood wrote: Sun Nov 17, 2019 8:10 pm
Helo80 wrote: Wed Nov 07, 2018 6:48 pm

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.
What did you decide in 2018 Open season?
May I ask how you’ve kept or changed your decision for 2019’s Open season (now)?

I need to probably look that up... thanks for reminding me. I'm with MHBP HDHP thru Aetna. $100 per month deposited by them into Payflex that has Vanguard and S&P500 index funds at 4 basis points. It's been good thus far.
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motorcyclesarecool
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by motorcyclesarecool »

tomwood wrote: Sun Nov 17, 2019 8:07 pm
motorcyclesarecool wrote: Wed Nov 07, 2018 4:55 am Re: PayFlex- keep in mind that once you leave Aetna (or MHBP- they also use PayFlex)
Does PayFlex, with MHBP, automatically invest the pass through HSA money into a chosen account?
No idea, I’d ask the OP.
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.
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by tomwood »

Helo80 wrote: Sun Nov 17, 2019 9:16 pm
tomwood wrote: Sun Nov 17, 2019 8:10 pm
Helo80 wrote: Wed Nov 07, 2018 6:48 pm

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.
What did you decide in 2018 Open season?
May I ask how you’ve kept or changed your decision for 2019’s Open season (now)?

I need to probably look that up... thanks for reminding me. I'm with MHBP HDHP thru Aetna. $100 per month deposited by them into Payflex that has Vanguard and S&P500 index funds at 4 basis points. It's been good thus far.
Does PayFlex, with MHBP, automatically invest each $100 pass through HSA money into a chosen fund such as VG’s S&P? Or do you need to open the account and invest yourself each month?
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Re: HSA Bank and Trustee to Trustee Fee question for FEHB

Post by Helo80 »

tomwood wrote: Mon Nov 18, 2019 6:47 am Does PayFlex, with MHBP, automatically invest each $100 pass through HSA money into a chosen fund such as VG’s S&P? Or do you need to open the account and invest yourself each month?
Yes....

Once you meet the $1,000 minimum on Payflex, you can set Payflex to auto-sweep any monies above $1,000 into an Asset Allocation of your choosing. So, once a month Payflex gets $100 (usually first week of month), as well as, my payroll contribution every other week. Then, it automatically is dumped into S&P500 VFIAX when the weekly check is done. The interface is a bit dated, but it actually does everything you would want it to do.
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