My company is moving my HSA from Optum Bank to another place

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Topic Author
silverskates
Posts: 196
Joined: Thu May 12, 2016 11:19 am

My company is moving my HSA from Optum Bank to another place

Post by silverskates » Mon Nov 04, 2019 5:47 pm

My company is moving my HSA from Optum Bank to another place and will cover the fee ($20) to roll it during my annual benefit enrollment. Are there any downsides with leaving it at Optum Bank or should I just move it to make life easier? I currently have $50k in my HSA. Thanks in advance for your responses!

Nicolas
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Joined: Wed Aug 22, 2012 7:41 am

Re: My company is moving my HSA from Optum Bank to another place

Post by Nicolas » Mon Nov 04, 2019 6:33 pm

silverskates wrote:
Mon Nov 04, 2019 5:47 pm
My company is moving my HSA from Optum Bank to another place and will cover the fee ($20) to roll it during my annual benefit enrollment. Are there any downsides with leaving it at Optum Bank or should I just move it to make life easier? I currently have $50k in my HSA. Thanks in advance for your responses!
I kept my HSA with Optum after I retired and was charged a $3 a month fee to keep the account once I was off my company’s plan. Also their website is clunky and not intuitive in my opinion. So I just moved it to Lively, paying a $20 transfer fee. My timing was terrible as I initiated it at the start of October (usually a down month) and I still don’t have it invested, I missed the runup this month in the equity markets. They don’t allow the transfer of securities “in kind” so I had to sell them to cash first.

So to save $3 a month I missed out on thousands in gains! With Lively there are no fees and you can invest via Ameritrade (now no commissions). My money hasn’t hit Ameritrade yet, should be any day. But prices are higher now :annoyed

Good thing it’s a small part of my portfolio, the rest is invested. Still, it hurts.

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grabiner
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Re: My company is moving my HSA from Optum Bank to another place

Post by grabiner » Mon Nov 04, 2019 9:51 pm

This could be more than just an inconvenience if you are a CA or NJ resident; in order to switch HSA providers, you might be forced to sell the investments, and if they are in stock, you may have a substantial state capital gain.
Wiki David Grabiner

Topic Author
silverskates
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Joined: Thu May 12, 2016 11:19 am

Re: My company is moving my HSA from Optum Bank to another place

Post by silverskates » Tue Nov 05, 2019 4:12 pm

I called Optum Bank and found out that there will be no fee to keep my HSA there because my balance is more than $5,000. The name of the company my HSA will be through starting in 2020 is Acclaris. I have no idea what the fund types and fund fees are at Acclaris but we were told they have many options like we do through Optum.

So, based on the fee being $0 I'm planning on leaving my existing HSA money in Optum Bank.

Does anyone see any downsides to this?

Topic Author
silverskates
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Joined: Thu May 12, 2016 11:19 am

Re: My company is moving my HSA from Optum Bank to another place

Post by silverskates » Wed Nov 06, 2019 5:03 pm

Does anyone have any reasons why I should move my HSA of $50,000 from Optum Bank to a different company in 2020 or leave it with Optum? The only downside I see is that I'll have 2 HSA accounts going forward. I don't have info yet on funds and fees with the new company.

Thanks in advance for your responses!

Clarice
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Location: Orlando FL

Re: My company is moving my HSA from Optum Bank to another place

Post by Clarice » Wed Nov 06, 2019 7:29 pm

if one place is as good as another - why not simplify by moving to one?

I don’t buy the whole - oh you’ll be out of the market aspect - that’s market timing.

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