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Moving an HSA from Optum to Vanguard

Posted: Tue May 21, 2019 8:58 am
by Cody6136
Hi all,

As I inch along towards financial sanity (first step towards financial freedom), I'm now considering my HSA. I would like to extract it from Optum, which I have not found user-friendly, to Vanguard.

I'm aware that this is not a rollover, per se, but is the process akin to a rollover, in that I can contact Vanguard? I'm feeling cautious about cashing it out as it's been tax advantaged.

I don't want to cash it out, right? I hope I'm not stuck at Optum....

Any help is, once again, deeply appreciated.

Re: Moving an HSA from Optum to Vanguard

Posted: Tue May 21, 2019 9:02 am
by OnLevel
I dont think Vanguard offres HSAs. Fidelity does, though.

Re: Moving an HSA from Optum to Vanguard

Posted: Tue May 21, 2019 9:03 am
by Dottie57
I want to move my money from Optum Bank too. And am. Interested in what info is too. I will use Fidelity.

Re: Moving an HSA from Optum to Vanguard

Posted: Tue May 21, 2019 9:14 am
by Small Law Survivor
Yes, sadly V. doesn't offer HSAs. General consensus, based on the reading I've done (and podcasts) is that Fidelity is best option. "First dollar" investing, low (no?) fees. I'm planning to move from HSA Bank for Fido when I stop working.

Re: Moving an HSA from Optum to Vanguard

Posted: Tue May 21, 2019 9:34 am
by Wiggums
I agree. Fidelity is a good option. Not available at Vanguard.

Re: Moving an HSA from Optum to Vanguard

Posted: Tue May 21, 2019 9:53 am
by Cody6136
Dottie57 wrote: Tue May 21, 2019 9:03 am I want to move my money from Optum Bank too. And am. Interested in what info is too. I will use Fidelity.

Color me embarrassed! I will be checking out Fido.

Still think I need to conduct this as if a rollover, right?

Re: Moving an HSA from Optum to Vanguard

Posted: Tue May 21, 2019 10:01 am
by mhalley
Once you create an hsa account fidelity, it will give you the opportunity to fund it via transfer. You need a pdf of the most recent statement. Some accounts will be done online by uploading the pdf, some require mailing in a form, not sure which one Optum needs.

Re: Moving an HSA from Optum to Vanguard

Posted: Tue May 21, 2019 10:08 am
by Jazzysoon
I moved my HSA from Optum Bank to Fidelity in Jan 2019. I created an account at Fidelity and they pulled the account over. I could not transfer in kind, S&P Index fund I had my HSA in at Optum had to be sold, and at least in Jan, Optum only would send paper check so out of market for 10+ days (of course market went up during the snail mail step).

Re: Moving an HSA from Optum to Vanguard

Posted: Tue May 21, 2019 10:19 am
by gjlynch17
Jazzysoon wrote: Tue May 21, 2019 10:08 am I moved my HSA from Optum Bank to Fidelity in Jan 2019. I created an account at Fidelity and they pulled the account over. I could not transfer in kind, S&P Index fund I had my HSA in at Optum had to be sold, and at least in Jan, Optum only would send paper check so out of market for 10+ days (of course market went up during the snail mail step).
Similar story except my market timing was better. I moved from Optum Bank to Fidelity in March 2019. The process went OK, although Fidelity messed up the initial transfer request (which they promptly corrected) and Optum Bank had to liquidate and transfer the amounts to Fidelity. Optum Bank had decent investment option but it was not very user friendly and the monthly fees were annoying but not significant. Overall, I am glad to have the HSA at Fidelity. I also moved by Cash Management Account to Fidelity at the same time because Vanguard announced the discontinuation of its Advantage Account. :(

Re: Moving an HSA from Optum to Vanguard

Posted: Tue May 21, 2019 11:04 am
by Dottie57
Cody6136 wrote: Tue May 21, 2019 9:53 am
Dottie57 wrote: Tue May 21, 2019 9:03 am I want to move my money from Optum Bank too. And am. Interested in what info is too. I will use Fidelity.

Color me embarrassed! I will be checking out Fido.

Still think I need to conduct this as if a rollover, right?
Rollover /transfer. Don’t cash out and attempt to put back in. Electronic transfer.

Re: Moving an HSA from Optum to Vanguard

Posted: Tue May 21, 2019 12:34 pm
by TropikThunder
Jazzysoon wrote: Tue May 21, 2019 10:08 am I moved my HSA from Optum Bank to Fidelity in Jan 2019. I created an account at Fidelity and they pulled the account over. I could not transfer in kind, S&P Index fund I had my HSA in at Optum had to be sold, and at least in Jan, Optum only would send paper check so out of market for 10+ days (of course market went up during the snail mail step).
Was the S&P500 index at Optum a proprietary fund, or did they just not “let you” transfer in kind? I switched from HSA Bank to Lively by in-kind transfer of the SPTM Total Stock ETF but both HSA Bank and Lively use TD Ameritrade so that part was seamless. Makes me wonder if my in-kind transfer was the exception or the rule.

Re: Moving an HSA from Optum to Vanguard

Posted: Tue May 21, 2019 2:57 pm
by Jazzysoon
TropikThunder wrote: Tue May 21, 2019 12:34 pm
Jazzysoon wrote: Tue May 21, 2019 10:08 am I moved my HSA from Optum Bank to Fidelity in Jan 2019. I created an account at Fidelity and they pulled the account over. I could not transfer in kind, S&P Index fund I had my HSA in at Optum had to be sold, and at least in Jan, Optum only would send paper check so out of market for 10+ days (of course market went up during the snail mail step).
Was the S&P500 index at Optum a proprietary fund, or did they just not “let you” transfer in kind? I switched from HSA Bank to Lively by in-kind transfer of the SPTM Total Stock ETF but both HSA Bank and Lively use TD Ameritrade so that part was seamless. Makes me wonder if my in-kind transfer was the exception or the rule.
It was VFIAX Vanguard 500 Index Admiral, so not really a proprietary fund, and not institutional class. I was told it was limitation of Optum Bank, there was a long thread last fall when Fidelity started offering HSA's and lots of stories with other HSA's from different providers being transferred in-kind to Fidelity. I tried really hard to not have to liquidate it before transferring to Fidelity.