Fidelity HSA California strategy

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Topic Author
aha
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Fidelity HSA California strategy

Post by aha »

I wish I had known about the Fidelity HSA earlier but I just moved my HSA from Elements and TDAmeritrade to Fidelity. So now I have STIP and some cash to invest. Is it better to:

1) invest the cash in STIP so I only need to track one fund? STIP seems to be not commission free. (I could be wrong. I'm still learning how to navigate the web site. There's a lot of stuff.)
or
2) invest the cash in some other treasury or TIPS fund. (I live in CA.) That would mean maintaining two funds. What fund/ETF do you recommend? I'm looking for 10-year TIPS.
or
3) sell STIP and invest in a better fund. Then I'll probably need to pay capital gain tax in CA.

The ultimate goal is to minimize paper work and tracking work.
Jtf6
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Re: Fidelity HSA California strategy

Post by Jtf6 »

I live in California, I max out an HSA and I put my money in fidelity FZROX fund. I'll deal with the state tax implications. As far as I know,as long as I don't make any trades within my HSA, the only tax hit I have to worry about is not having my earnings ($2600 not including the $900 passthrough payments) tax exempt.

I'll still have to pay state taxes at withdrawal but maybe by that point I won't be living in California. I'm using my HSA as another retirement account and reducing my federal income allows me to continue to be eligible for a Roth IRA (barely).

Any medical expense I just front end from my savings.
Am I missing something?
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nps
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Re: Fidelity HSA California strategy

Post by nps »

Jtf6 wrote: Wed Feb 05, 2020 3:30 am As far as I know,as long as I don't make any trades within my HSA, the only tax hit I have to worry about is not having my earnings ($2600 not including the $900 passthrough payments) tax exempt.
Does FZROX not pay dividends? Or are you in 0% LTCG bracket? Otherwise you will be paying tax also on dividends.
DarkHelmetII
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Re: Fidelity HSA California strategy

Post by DarkHelmetII »

US treasuries are nice because they are tax free at the state level
mrb09
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Re: Fidelity HSA California strategy

Post by mrb09 »

This is a good thread: viewtopic.php?f=1&t=301403&p=4970724#p4970724

This discusses how to do a US treasury ladder, no CA tax. That's what I do
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CalculatedRisk
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Re: Fidelity HSA California strategy

Post by CalculatedRisk »

nps wrote: Wed Feb 05, 2020 5:47 am
Jtf6 wrote: Wed Feb 05, 2020 3:30 am As far as I know,as long as I don't make any trades within my HSA, the only tax hit I have to worry about is not having my earnings ($2600 not including the $900 passthrough payments) tax exempt.
Does FZROX not pay dividends? Or are you in 0% LTCG bracket? Otherwise you will be paying tax also on dividends.
California does not have a lower rate for qualified dividends (or capital gains). It is all taxed at the ordinary income rates.

For these reasons and to avoid the hassle of dealing with CA taxes on my HSA (particularly tracking basis, since Fidelity won't), I use:
FUAMX - FID INTER TREASURY BOND INDEX FUND
mervinj7
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Re: Fidelity HSA California strategy

Post by mervinj7 »

aha wrote: Wed Feb 05, 2020 2:09 am So now I have STIP and some cash to invest.
The ultimate goal is to minimize paper work and tracking work.
Jtf6 wrote: Wed Feb 05, 2020 3:30 am I live in California, I max out an HSA and I put my money in fidelity FZROX fund. I'll deal with the state tax implications. As far as I know,as long as I don't make any trades within my HSA, the only tax hit I have to worry about is not having my earnings ($2600 not including the $900 passthrough payments) tax exempt.

I'll still have to pay state taxes at withdrawal but maybe by that point I won't be living in California. I'm using my HSA as another retirement account and reducing my federal income allows me to continue to be eligible for a Roth IRA (barely).

Any medical expense I just front end from my savings.
Am I missing something?
First of all, if you have anything in "cash," place it in FDLXX. That's Fidelity's Treasury Only Money Market Fund. It's automatically available for withdrawals and fund purchases. But more importantly, it generates no taxable income in a CA HSA since its 100% Treasuries.

Now, there are two school of thoughts on how to invest a CA HSA.

1. Minimize Paperwork
This approach minimizes paperwork by using 100% Treasuries or Treasury funds in your HSA. STIP is appropriate for this approach since the dividends are not taxable at a federal level in a HSA nor it is taxable at the CA state level. As an ETF, it also does not generate capital gains. A similar mutual fund version, however, might. For example, FUAMX had a small capital gains distribution in 2016, the one year I owned it.
Another way to minimize all paper work is build your own treasury ladder. It's 0 ER and you can setup Auto-Roll. That's what I highlight in my thread on building treasury ladders.

2. Maximize tax-advantaged space
Another approach is to place the highest growth potential assets in your HSA. For example, one could do 100% equities and use a low-cost index fund like FZROX or ETFs like VTI/ITOT. If you stay in CA when you retire, you would have to have pay CA capital gains taxes on withdrawals but not federal, so it's somewhat like a Roth IRA. However, FZROX does generate capital gains distributions and dividends each year that MUST be accounted in your CA state taxes. You will also NOT receive a 1099-B from Fidelity since that's a federal form and an HSA is not federally taxable. So, as long you are fully aware of the CA state consequences for EVERY year that you hold the fund, then 100% equities is another approach.

Personally, since the HSA is a small part of my overall portfolio, I use 100% Treasuries in the form of FDLXX for the "cash" portion and auto-rolling Treasury ladder for the rest. Thus, I have no paperwork for most years in my CA HSA. For several years, I did own Total Market and a TIPS fund but I got tired of making the adjustments on my CA tax return.
mrb09 wrote: Wed Feb 05, 2020 9:54 am This is a good thread: viewtopic.php?f=1&t=301403&p=4970724#p4970724

This discusses how to do a US treasury ladder, no CA tax. That's what I do
MotoTrojan
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Re: Fidelity HSA California strategy

Post by MotoTrojan »

Caps gain from sales are a pain but it’s pretty easy to look at the total of 4x dividends a year and toss it in to TurboTax. I’ve never understood why people work so hard to avoid taxation in a CA/NJ HSA, unless treasuries fall within their desired AA regardless.
mrb09
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Re: Fidelity HSA California strategy

Post by mrb09 »

MotoTrojan wrote: Wed Feb 05, 2020 1:07 pm Caps gain from sales are a pain but it’s pretty easy to look at the total of 4x dividends a year and toss it in to TurboTax. I’ve never understood why people work so hard to avoid taxation in a CA/NJ HSA, unless treasuries fall within their desired AA regardless.
It is for me. I have to keep bonds somewhere, and I keep a year's expenses (fixed amount) as part of my bonds in my 401k as treasuries. As my HSA goes up, I transfer the treasuries in my 401k for something else.
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jhfenton
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Re: Fidelity HSA California strategy

Post by jhfenton »

aha wrote: Wed Feb 05, 2020 2:09 am STIP seems to be not commission free.
All stocks and ETFs trade commission-free now at Fidelity.
MotoTrojan
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Re: Fidelity HSA California strategy

Post by MotoTrojan »

mrb09 wrote: Wed Feb 05, 2020 1:26 pm
MotoTrojan wrote: Wed Feb 05, 2020 1:07 pm Caps gain from sales are a pain but it’s pretty easy to look at the total of 4x dividends a year and toss it in to TurboTax. I’ve never understood why people work so hard to avoid taxation in a CA/NJ HSA, unless treasuries fall within their desired AA regardless.
It is for me. I have to keep bonds somewhere, and I keep a year's expenses (fixed amount) as part of my bonds in my 401k as treasuries. As my HSA goes up, I transfer the treasuries in my 401k for something else.
I presume this is an emergency fund, and you'd sell equities in taxable as needed (and swap in 401k)? Given how low yields are and the fact that treasuries are state-tax exempt, I would think that holding in taxable could make sense in some situations.
mrb09
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Re: Fidelity HSA California strategy

Post by mrb09 »

MotoTrojan wrote: Wed Feb 05, 2020 1:52 pm
mrb09 wrote: Wed Feb 05, 2020 1:26 pm
MotoTrojan wrote: Wed Feb 05, 2020 1:07 pm Caps gain from sales are a pain but it’s pretty easy to look at the total of 4x dividends a year and toss it in to TurboTax. I’ve never understood why people work so hard to avoid taxation in a CA/NJ HSA, unless treasuries fall within their desired AA regardless.
It is for me. I have to keep bonds somewhere, and I keep a year's expenses (fixed amount) as part of my bonds in my 401k as treasuries. As my HSA goes up, I transfer the treasuries in my 401k for something else.
I presume this is an emergency fund, and you'd sell equities in taxable as needed (and swap in 401k)? Given how low yields are and the fact that treasuries are state-tax exempt, I would think that holding in taxable could make sense in some situations.
Yea, I have a tiered plan:

- 3 month expenses cash
- 3 month expenses CA muni in taxable
- A few years expenses equities in taxable
- Many years expenses in IRA/401k/HSA/deferred comp, with one full year of treasuries between 401k+HSA

Plan A is to remain employed and retire on schedule :) Plan B is go through cash->taxable equities->CA muni->401k equity in that order if out of work. Plan C is drain munis before equities and hit the 401k bonds if stocks are tanked. Plan D is raid my HSA and 401k for treasuries if stocks, munis and corp bonds have all tanked. I'm over 60 and can withdraw deferred if needed, and I have enough receipts to raid my HSA.
Topic Author
aha
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Re: Fidelity HSA California strategy

Post by aha »

I read that thread on treasury laddering when I searched for CA HSA and decided not to do that. It sounds rather complicated and too much work tracking the maturity dates. It's a very small portion of my portfolio and I'm not planning on touching this account until I need to, i.e., old or seriously ill. And I'm not contributing new HSA money. So I don't want to spend too much effort on this. Just set and forget.

I'm a little leaning towards a fund than an ETF because I can put all cash in a fund. With ETF, there's always some cash lingering around. FUAMX had only one capital gain distribution since its inception in 2005. Maybe a small risk. Its expense ratio is 0.03% compared to STIP's 0.06%.

The default Fidelity "cash" is FDRXX. I suppose that's CA taxable?

Would love to move out of CA but am married to a Californian so it's been difficult. Maybe CA will come to senses some day and not tax HSA.
Last edited by aha on Thu Feb 06, 2020 11:47 pm, edited 1 time in total.
carminered2019
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Re: Fidelity HSA California strategy

Post by carminered2019 »

How do you qualify for HSA in California ?
Spirit Rider
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Re: Fidelity HSA California strategy

Post by Spirit Rider »

vipertom1970 wrote: Thu Feb 06, 2020 2:07 am How do you qualify for HSA in California?
The same as any other state.

The difference in CA is that HSA contributions, earnings and capital gains are always taxable and non-qualified distributions are not.
mervinj7
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Re: Fidelity HSA California strategy

Post by mervinj7 »

aha wrote: Thu Feb 06, 2020 1:43 am I read that thread on treasury laddering when I searched for CA HSA and decided not to do that. It sounds rather complicated and too much work tracking the maturity dates. It's a very small portion of my portfolio and I'm not planning on touching this account until I need to, i.e., old or seriously ill.
My bad, I should have put a easy example as well! My suggestion would be to buy just a single T Bill and set it to autoroll. Any remaining funds can be FDLXX. That's it! No more hassle, no more paperwork, no ER on the treasury bill. Just a single one time purchase.
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BroIceCream
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Re: Fidelity HSA California strategy

Post by BroIceCream »

While I hate CA taxation of HSA policies, I also want it to grow as much as possible, and my plan is to move out of CA after retirement.
My HSA is not used for medical expenses currently. So I am just putting the majority of it in a total market ETF (ITOT). My payroll deductions just sits in cash for the year. The interest on the cash is small. The growth on the 90% is good, with no cap gains.

I only invest once a year into the fund (the previous years total contributions), to minimize the # of tax lots I need to keep track of...and don't reinvest dividends, if any.
Topic Author
aha
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Re: Fidelity HSA California strategy

Post by aha »

T bill can only be in $1000s, right? So there will be a few 00s left in cash.

I thought about having a total market ETF. But in case I want to transfer it to another institution that doesn't have in-kind transfer, I may have to liquidate. I thought I had to liquidate TDAmeritrade this time but it allowed in-kind.
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Re: Fidelity HSA California strategy

Post by Spirit Rider »

aha wrote: Thu Feb 06, 2020 11:57 pm T bill can only be in $1000s, right? So there will be a few 00s left in cash.
Starting on 4/7/2008, TBills, Notes and Bonds became available from the Treasury in $100 increments. Now whether your brokerage offers them in that manner is a separate question.
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Re: Fidelity HSA California strategy

Post by Northern Flicker »

nps wrote: Wed Feb 05, 2020 5:47 am
Jtf6 wrote: Wed Feb 05, 2020 3:30 am As far as I know,as long as I don't make any trades within my HSA, the only tax hit I have to worry about is not having my earnings ($2600 not including the $900 passthrough payments) tax exempt.
Does FZROX not pay dividends? Or are you in 0% LTCG bracket? Otherwise you will be paying tax also on dividends.
I believe CA tax payments will be required for dividends and capital gains distributions. VTI or ITOT would be cheaper as they won’t generate capital gains distributions.
Risk is not a guarantor of return.
Topic Author
aha
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Re: Fidelity HSA California strategy

Post by aha »

So if I want a 10-year TIPS, is a 10-year T note the equivalent? And then I auto-roll every 10 years?
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grabiner
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Re: Fidelity HSA California strategy

Post by grabiner »

Jtf6 wrote: Wed Feb 05, 2020 3:30 am I live in California, I max out an HSA and I put my money in fidelity FZROX fund. I'll deal with the state tax implications. As far as I know,as long as I don't make any trades within my HSA, the only tax hit I have to worry about is not having my earnings ($2600 not including the $900 passthrough payments) tax exempt.
The passthrough will be taxable income; on your W-2, your CA wages will be higher than your federal wages. (I encountered this for several years as a NJ resident, and have had to correct it manually in those years that I filed nonresident CA or NJ taxes.)

You will still pay CA tax on dividends and capital gains
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Re: Fidelity HSA California strategy

Post by JediMisty »

CalculatedRisk wrote: Wed Feb 05, 2020 12:35 pm
nps wrote: Wed Feb 05, 2020 5:47 am
Jtf6 wrote: Wed Feb 05, 2020 3:30 am As far as I know,as long as I don't make any trades within my HSA, the only tax hit I have to worry about is not having my earnings ($2600 not including the $900 passthrough payments) tax exempt.
Does FZROX not pay dividends? Or are you in 0% LTCG bracket? Otherwise you will be paying tax also on dividends.
California does not have a lower rate for qualified dividends (or capital gains). It is all taxed at the ordinary income rates.

For these reasons and to avoid the hassle of dealing with CA taxes on my HSA (particularly tracking basis, since Fidelity won't), I use:
FUAMX - FID INTER TREASURY BOND INDEX FUND
+1 on the FUAMX. Reside in the other state which doesn't recognize HSA accounts.
CFM300
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Re: Fidelity HSA California strategy

Post by CFM300 »

Like others, I invest in FUAMX (Fidelity Intermediate Treasury Bond Index Fund).

And have dividends and cap gains directed to FDLXX (Fidelity Treasury Only Money Market Fund).

I do the latter so that I don't create dozens of tax lots.

You can't direct dividends to FDLXX until you already have a position in FDLXX, and you can't set FDLXX as your Core.

Once a year, I transfer money from an Optum HSA. The amount lands in the FDIC Core at Fidelity. I then make an annual purchase of FUAMX using the entire balance in the Core (which is the same as the amount I transferred from Optum), plus most, BUT NOT ALL, of the funds in FDLXX. You need to leave a bit in FDLXX otherwise the position is closed and your dividends from FUAMX will be directed to your Core, not FDLXX.
martyboyle
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Re: Fidelity HSA California strategy

Post by martyboyle »

CFM300 wrote: Sat Feb 08, 2020 11:11 pm Like others, I invest in FUAMX (Fidelity Intermediate Treasury Bond Index Fund).

And have dividends and cap gains directed to FDLXX (Fidelity Treasury Only Money Market Fund).

I do the latter so that I don't create dozens of tax lots.

You can't direct dividends to FDLXX until you already have a position in FDLXX, and you can't set FDLXX as your Core.

Once a year, I transfer money from an Optum HSA. The amount lands in the FDIC Core at Fidelity. I then make an annual purchase of FUAMX using the entire balance in the Core (which is the same as the amount I transferred from Optum), plus most, BUT NOT ALL, of the funds in FDLXX. You need to leave a bit in FDLXX otherwise the position is closed and your dividends from FUAMX will be directed to your Core, not FDLXX.
Why not just reinvest dividends back into Fuamx?
DarkHelmetII
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Re: Fidelity HSA California strategy

Post by DarkHelmetII »

DarkHelmetII wrote: Wed Feb 05, 2020 9:49 am US treasuries are nice because they are tax free at the state level
+1
CFM300
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Re: Fidelity HSA California strategy

Post by CFM300 »

martyboyle wrote: Tue Aug 04, 2020 6:58 am
CFM300 wrote: Sat Feb 08, 2020 11:11 pm Like others, I invest in FUAMX (Fidelity Intermediate Treasury Bond Index Fund).

And have dividends and cap gains directed to FDLXX (Fidelity Treasury Only Money Market Fund).

I do the latter so that I don't create dozens of tax lots.
Why not just reinvest dividends back into Fuamx?
HSA's are taxable in California. FUAMX pays a dividend every month. I don't want a dozen tax lots created every year.

Same reason I don't reinvest dividends in my other taxable accounts.
martyboyle
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Re: Fidelity HSA California strategy

Post by martyboyle »

CFM300 wrote: Tue Aug 04, 2020 10:57 am
martyboyle wrote: Tue Aug 04, 2020 6:58 am
CFM300 wrote: Sat Feb 08, 2020 11:11 pm Like others, I invest in FUAMX (Fidelity Intermediate Treasury Bond Index Fund).

And have dividends and cap gains directed to FDLXX (Fidelity Treasury Only Money Market Fund).

I do the latter so that I don't create dozens of tax lots.
Why not just reinvest dividends back into Fuamx?
HSA's are taxable in California. FUAMX pays a dividend every month. I don't want a dozen tax lots created every year.

Same reason I don't reinvest dividends in my other taxable accounts.
Hmm I'm new to all this so looks like I'm not grasping this concept so I apologize for the basic questions. I'm in a similar situation in NJ.
You dont want to create tax lots from a treasury fund (FUAMX) but still buying another treasury fund (FDLXX) whenever those dividends come in. Just wasn't clear why the intermediate step.
Also looks like FDLXX is closed to new investors so I suppose not an option.
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grabiner
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Re: Fidelity HSA California strategy

Post by grabiner »

martyboyle wrote: Tue Aug 04, 2020 9:16 pm
CFM300 wrote: Tue Aug 04, 2020 10:57 am
martyboyle wrote: Tue Aug 04, 2020 6:58 am
CFM300 wrote: Sat Feb 08, 2020 11:11 pm Like others, I invest in FUAMX (Fidelity Intermediate Treasury Bond Index Fund).

And have dividends and cap gains directed to FDLXX (Fidelity Treasury Only Money Market Fund).

I do the latter so that I don't create dozens of tax lots.
Why not just reinvest dividends back into Fuamx?
HSA's are taxable in California. FUAMX pays a dividend every month. I don't want a dozen tax lots created every year.

Same reason I don't reinvest dividends in my other taxable accounts.
Hmm I'm new to all this so looks like I'm not grasping this concept so I apologize for the basic questions. I'm in a similar situation in NJ.
You dont want to create tax lots from a treasury fund (FUAMX) but still buying another treasury fund (FDLXX) whenever those dividends come in. Just wasn't clear why the intermediate step.
Also looks like FDLXX is closed to new investors so I suppose not an option.
In CA and NJ, you have to keep track of tax lots in your HSA. If you reinvest all your dividends, you have a tax lot for each dividend. Money-market funds don't have capital gains, so there is no need to keep track of tax lots.

Even in NJ, where a Treasury fund may be a "qualified investment fund", you still need to keep track of lots. I can't tell from NJ Publication GIT-5 whether capital gains on a qualified investment fund are fully taxable, or only taxable to the extent that they are on NJ-taxable obligations (so that you would pay tax on 10% of the gain if the fund holds 90% Treasuries), but either way, you need to keep the records.
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Re: Fidelity HSA California strategy

Post by CFM300 »

martyboyle wrote: Tue Aug 04, 2020 9:16 pm You dont want to create tax lots from a treasury fund (FUAMX) but still buying another treasury fund (FDLXX) whenever those dividends come in. Just wasn't clear why the intermediate step.
FDLXX is a money market fund, and the shares have a constant value of $1. So when I buy 100 shares, I pay $100, and when I sell 100 shares, I receive $100. Hence, there's no capital gain or loss to be reported when filing taxes. So I direct my dividends from FUAMX to FDLXX, and use them -- along with new money -- to make a single annual purchase of FUAMX.

Same principle as directing dividends from VTSAX (Total Stock Market) into VMMXX (Prime Money Market) in a regular taxable account. Once enough dividends pile up, purchase more shares of VTSAX (or whatever). That creates a single new tax lot rather than multiple lots from each dividend.

Make sense?
Windstone
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Re: Fidelity HSA California strategy

Post by Windstone »

hi, it's interesting
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Re: Fidelity HSA California strategy

Post by tesuzuki2002 »

Jtf6 wrote: Wed Feb 05, 2020 3:30 am I'll still have to pay state taxes at withdrawal but maybe by that point I won't be living in California. I'm using my HSA as another retirement account and reducing my federal income allows me to continue to be eligible for a Roth IRA (barely).
By Roth IRA eligibility you are referring to being over the $117K or $184K limit, either single or married? Read up on the Back door roth, if you don't have a large TIRA hanging out somewhere that you have to deal with the pro-rata rule, it becomes pretty simple. I made the switch about 2 years before I NEEDED to. I'm already doing it.. and this year with a promotion I would have surpassed all the phase outs.

I just wished my employer offered health plans that were HSA eligible. I miss that from my old job.
metro
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Re: Fidelity HSA California strategy

Post by metro »

Hello

I am just curious, what makes FUAMX a more popular pick than FNBGX? FNBGX is showing significantly higher returns across the board.
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Re: Fidelity HSA California strategy

Post by nalor511 »

metro wrote: Sun Nov 15, 2020 7:41 pm Hello

I am just curious, what makes FUAMX a more popular pick than FNBGX? FNBGX is showing significantly higher returns across the board.
It depends (I guess) how long you expect to hold, and what you expect interest rates to do. NAV will go down as rates go up.

FUAMX
30-Day Yield
0.51%
Weighted Avg Maturity
7.00 Years
Duration
6.57 Years
Distribution Yield (Daily)
1.21%

FNBGX
30-Day Yield
1.43%
Weighted Avg Maturity
24.60 Years
Duration
19.18 Years
Distribution Yield (Daily)
1.96%
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grabiner
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Re: Fidelity HSA California strategy

Post by grabiner »

nalor511 wrote: Sun Nov 15, 2020 8:47 pm
metro wrote: Sun Nov 15, 2020 7:41 pm Hello

I am just curious, what makes FUAMX a more popular pick than FNBGX? FNBGX is showing significantly higher returns across the board.
It depends (I guess) how long you expect to hold, and what you expect interest rates to do. NAV will go down as rates go up.

FUAMX
30-Day Yield
0.51%
Weighted Avg Maturity
7.00 Years
Duration
6.57 Years
Distribution Yield (Daily)
1.21%

FNBGX
30-Day Yield
1.43%
Weighted Avg Maturity
24.60 Years
Duration
19.18 Years
Distribution Yield (Daily)
1.96%
So for the 0.82% higher yield on FNBGX (Fidelity Long-Term Treasury Index), you take a lot more interest-rate risk than for the intermediate-term fund. If long-term Treasury rates rise by 1%, the Long-Term Treasury Index will lose 19% of its value because of the 19-year duration.

Another way to look at the risk is that a long-term Treasury bond is guaranteed to pay a fixed number of dollars, but on a date far in the future, so that the value of those dollars is subject to a lot of inflation risk. Unless you are matching a fixed-dollar liability (as insurance companies do), you would be better off with long-term TIPS, which have a known real value. You can buy individual TIPS, or the ETF LTPZ.
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metro
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Re: Fidelity HSA California strategy

Post by metro »

Thanks. It looks like FUAMX is what is most commonly recommended so I will go with that as I am still quite new to all of this
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Re: Fidelity HSA California strategy

Post by majiaknight »

Not sure whether I've missed anything but why complicate the CA HSA?

DW and I have reported HSA CA state taxes for several years now as both of our employers offered HSAs w/ annual matching incentives. Last year DW's company moved to Fidelity HSA and I found it was just as easy to sort the information needed for tax purpose as the other HSA accounts we've owned over the years.

For example, in Fidelity HSA you could easily select each quarter in 'time period' and just show 'Dividends/Interests' as a filter before exporting the transaction spreadsheet. Then, you could just use the sum to get the number to report it in your tax return (we don't sell funds in HSA which we intend to use it as another tax-exempt 'retirement account' for long-term passive investing). It took me maybe 5 mins every year to gather the numbers for tax return using Turbotax so I won't change any AA due to CA tax reporting and all of our money in Fidelity HSA are invested in FZROX. It also doesn't make sense in my case (MFJ Fed tax bracket 35%) to put any bond-like funds in HSA as we have plenty of 401K pre-tax spaces and EE/iBond as fixed income portion of our portfolio to fit the desired 70/30 AA so I would only consider to put high potential growth stock index in HSA.
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