Fidelity HSA? Thinking of switching.

[TarHeel2002]

Can someone tell me about your experience with Fidelity HSA. I am currently with UMB HSA (not by choice, I was ported over from my old provider) and they charge $3 / month service fee and make me keep $1000 uninvested in order to have access to their investment funds. I am utilizing my HSA as a long term investment platform and I don’t use it to pay medical bills currently nor do I plan to. I currently have about $59,000 total with them. I am interested in low cost long term investing and I want to have everything in my HSA invested if possible. Thanks.

[dpa789kd]

We switched to Fidelity a year or so ago after HSABank shut down their service. I've had no problems with them and there were plenty of low cost options. We're doing the same thing, investing the money for retirement use and paying our bills out of pocket. It's been easy to transfer money in thru my paycheck.

[livesoft]

For folks who use HSAs as an investment account, there is not much to it, so Fidelity is great. However, it's all the other stuff associated with the HSA that probably distinguishes them.
Do they answer the phone when you have questions?
Are the 1099s timely and correct?
If you contribute too much how easy is it to get things corrected?
Is it easy to rollover a former employer HSA into a Fidelity HSA?

So for us with two HSAs at Fidelity: Fidelity has come through with flying colors on all the above. I highly recommend Fidelity for your HSA.

[fizxman]

I rolled over my HSAs from my previous two employers to Fidelity and have had no issues. I also don't use or plan to use it until retirement but I had ~$1,000 sitting in cash because I thought I had to, like most other HSA providers. I did a quick search on Fidelity and found the following quote.

"You can choose to invest some or all of your HSA money for potential growth. It's a great way to prepare for health care costs in retirement. Fidelity HSAs are brokerage accounts, giving you more options for simple, seamless investing of your HSA money in a range of mutual funds, stocks, bonds, ETFs, Treasuries, and more."

Based on that quote, I just invested what I had in cash with the rest of the money which is in FZROX, the 0% expense ratio fund at Fidelity. I don't put any money into this account because I still have my current employer's HSA at HealthEquity that I fund instead.

I did see the following on the Fidelity website under Minimums and Fees https://www.fidelity.com/go/hsa/investing-hsa-your-way:

"$0 for under $25,000 and 0.35% per year for $25,000 and above"

[Dead Eye]

I'm in the exact position as you...we were recently ported over to UMB Bank from our previous HSA. We already have a second HSA account with Fidelity and they have been good to work with. However, when reaching out to Fidelity about moving our new UMB account, they indicated it would have to be liquidated (they would not do an inkind transfer). So far we have chosen not to liquidate with the market down but will likely do so for Fidelity ease of use and also to simplify our accounts.

[PersonalFinanceJam]

I rolled over my HSAs from my previous two employers to Fidelity and have had no issues. I also don't use or plan to use it until retirement but I had ~$1,000 sitting in cash because I thought I had to, like most other HSA providers. I did a quick search on Fidelity and found the following quote.

"You can choose to invest some or all of your HSA money for potential growth. It's a great way to prepare for health care costs in retirement. Fidelity HSAs are brokerage accounts, giving you more options for simple, seamless investing of your HSA money in a range of mutual funds, stocks, bonds, ETFs, Treasuries, and more."

Based on that quote, I just invested what I had in cash with the rest of the money which is in FZROX, the 0% expense ratio fund at Fidelity. I don't put any money into this account because I still have my current employer's HSA at HealthEquity that I fund instead.

I did see the following on the Fidelity website under Minimums and Fees https://www.fidelity.com/go/hsa/investing-hsa-your-way:

"$0 for under $25,000 and 0.35% per year for $25,000 and above"

Those fees only apply if you elect to use the Fidelity Go robo advisor. It’s completely fee free for DIY.

[fizxman]

I rolled over my HSAs from my previous two employers to Fidelity and have had no issues. I also don't use or plan to use it until retirement but I had ~$1,000 sitting in cash because I thought I had to, like most other HSA providers. I did a quick search on Fidelity and found the following quote.

"You can choose to invest some or all of your HSA money for potential growth. It's a great way to prepare for health care costs in retirement. Fidelity HSAs are brokerage accounts, giving you more options for simple, seamless investing of your HSA money in a range of mutual funds, stocks, bonds, ETFs, Treasuries, and more."

Based on that quote, I just invested what I had in cash with the rest of the money which is in FZROX, the 0% expense ratio fund at Fidelity. I don't put any money into this account because I still have my current employer's HSA at HealthEquity that I fund instead.

I did see the following on the Fidelity website under Minimums and Fees https://www.fidelity.com/go/hsa/investing-hsa-your-way:

"$0 for under $25,000 and 0.35% per year for $25,000 and above"

Those fees only apply if you elect to use the Fidelity Go robo advisor. It’s completely fee free for DIY.

You are correct. When I scrolled down on the page, I didn't realize the left column was DIY and the right column was Fidelity Go. It doesn't apply to me but it could apply to the OP with $59,000 to invest.

[drumboy256]

Can someone tell me about your experience with Fidelity HSA. I am currently with UMB HSA (not by choice, I was ported over from my old provider) and they charge $3 / month service fee and make me keep $1000 uninvested in order to have access to their investment funds. I am utilizing my HSA as a long term investment platform and I don’t use it to pay medical bills currently nor do I plan to. I currently have about $59,000 total with them. I am interested in low cost long term investing and I want to have everything in my HSA invested if possible. Thanks.

Yes, get the heck out of your old HSA and join the club over at Fidelity!

[dcabler]

Moved it all over from HealthEquity in early 2022. Now, my withholdings from my employer still land at HealthEquity, but I move it over to Fidelity whenever the cash balance builds up to around $1K. then rinse/repeat.

No issues at all, but I'm a long term Fidelity customer and very familiar with them. Currently cash-flowing medical expenses but will begin to use what's in the HSA once retirement begins...

Cheers.

[TarHeel2002]

I'm in the exact position as you...we were recently ported over to UMB Bank from our previous HSA. We already have a second HSA account with Fidelity and they have been good to work with. However, when reaching out to Fidelity about moving our new UMB account, they indicated it would have to be liquidated (they would not do an inkind transfer). So far we have chosen not to liquidate with the market down but will likely do so for Fidelity ease of use and also to simplify our accounts.

Sounds like making the switch would be the best decision. Can you think of any tax consequences etc from making the switch since they won’t do an in-kind transfer? I’m assuming the funds will be wired directly from UMB to Fidelity. Thank you! Looking forward to joining the Fidelity HSA club!!

[RickBoglehead]

I'm in the exact position as you...we were recently ported over to UMB Bank from our previous HSA. We already have a second HSA account with Fidelity and they have been good to work with. However, when reaching out to Fidelity about moving our new UMB account, they indicated it would have to be liquidated (they would not do an inkind transfer). So far we have chosen not to liquidate with the market down but will likely do so for Fidelity ease of use and also to simplify our accounts.

Sounds like making the switch would be the best decision. Can you think of any tax consequences etc from making the switch since they won’t do an in-kind transfer? I’m assuming the funds will be wired directly from UMB to Fidelity. Thank you! Looking forward to joining the Fidelity HSA club!!

When we switched, my HSA would only mail a check to Fidelity as I recall.

[Dead Eye]

I'm in the exact position as you...we were recently ported over to UMB Bank from our previous HSA. We already have a second HSA account with Fidelity and they have been good to work with. However, when reaching out to Fidelity about moving our new UMB account, they indicated it would have to be liquidated (they would not do an inkind transfer). So far we have chosen not to liquidate with the market down but will likely do so for Fidelity ease of use and also to simplify our accounts.

Sounds like making the switch would be the best decision. Can you think of any tax consequences etc from making the switch since they won’t do an in-kind transfer? I’m assuming the funds will be wired directly from UMB to Fidelity. Thank you! Looking forward to joining the Fidelity HSA club!!

To clarify my earlier post, it's my understanding it is UMB that does not allow in-kind transfers out (Fidelity was willing to receive my specific index fund in-kind). I have used Fidelity's transfer process for other HSA money movement and as long as it is a "transfer" I don't know of any tax consequences. You may need to open the HSA with Fidelity; then ask UMB to liquidate any investments in your HSA; and then complete the transfer request on the Fidelity website. I believe there is a $25 fee assessed by UMB for the transfer but nothing from Fidelity to receive the funds.

[David Jay]

One more positive experience with Fidelity HSA.

[TarHeel2002]

I'm in the exact position as you...we were recently ported over to UMB Bank from our previous HSA. We already have a second HSA account with Fidelity and they have been good to work with. However, when reaching out to Fidelity about moving our new UMB account, they indicated it would have to be liquidated (they would not do an inkind transfer). So far we have chosen not to liquidate with the market down but will likely do so for Fidelity ease of use and also to simplify our accounts.

Sounds like making the switch would be the best decision. Can you think of any tax consequences etc from making the switch since they won’t do an in-kind transfer? I’m assuming the funds will be wired directly from UMB to Fidelity. Thank you! Looking forward to joining the Fidelity HSA club!!

To clarify my earlier post, it's my understanding it is UMB that does not allow in-kind transfers out (Fidelity was willing to receive my specific index fund in-kind). I have used Fidelity's transfer process for other HSA money movement and as long as it is a "transfer" I don't know of any tax consequences. You may need to open the HSA with Fidelity; then ask UMB to liquidate any investments in your HSA; and then complete the transfer request on the Fidelity website. I believe there is a $25 fee assessed by UMB for the transfer but nothing from Fidelity to receive the funds.

Got it. Thank you!

[fetch5482]

I rollover/transfer my HSA balance every year from my employer sponsored account (Health Equity) to Fidelity HSA. Being a CA state resident I had to swallow the one-time tax bill of needing to sell with capital gains and re-buy; but now each year as soon as the cash arrives in my Health Equity HSA, I fill out the TOA form and transfer them out to Fidelity.
Couldn't be happier.

[Dead Eye]

I rollover/transfer my HSA balance every year from my employer sponsored account (Health Equity) to Fidelity HSA. Being a CA state resident I had to swallow the one-time tax bill of needing to sell with capital gains and re-buy; but now each year as soon as the cash arrives in my Health Equity HSA, I fill out the TOA form and transfer them out to Fidelity.
Couldn't be happier.

To fetch5482's point, I also typically just transfer cash from one HSA over to Fidelity and have not had to liquidate investments in order to transfer. I would confirm with UMB there aren't any surprise issues with liquidating the investment account and then transferring.

[fetch5482]

I rollover/transfer my HSA balance every year from my employer sponsored account (Health Equity) to Fidelity HSA. Being a CA state resident I had to swallow the one-time tax bill of needing to sell with capital gains and re-buy; but now each year as soon as the cash arrives in my Health Equity HSA, I fill out the TOA form and transfer them out to Fidelity.
Couldn't be happier.

To fetch5482's point, I also typically just transfer cash from one HSA over to Fidelity and have not had to liquidate investments in order to transfer between HSA's. I would confirm with UMB there aren't any surprise issues with liquidating the investment account and then transferring.

CA and NJ are "special" here, in that these two states do not recognize HSAs for tax deduction. So you get to pay state taxes on all your capital gains and dividends/distributions in these two states. Given that HealthEquity does not allow in-kind transfer out, I had to do a one-time sale so I could transfer my account to Fidelity as Cash. This triggered taxes in California - luckily my account balance at that time was not too large to worry about it, and I am glad I switched to Fidelity.

[goblue100]

Moving from HealthEquity, thanks for the nudge.

[veggivet]

Count me as another Fidelity HSA convert. Made the move from Lively/TDA a couple of weeks ago. Procedure was seamless, painless.

[boglegirl]

Moved it all over from HealthEquity in early 2022. Now, my withholdings from my employer still land at HealthEquity, but I move it over to Fidelity whenever the cash balance builds up to around $1K. then rinse/repeat.
...

Can you tell me how that process went? My husband's employee HSA is at HealthEquity. Do we have to liquidate the assets to transfer? Are you paying fees for any transfers?

[dcabler]

Moved it all over from HealthEquity in early 2022. Now, my withholdings from my employer still land at HealthEquity, but I move it over to Fidelity whenever the cash balance builds up to around $1K. then rinse/repeat.
...

Can you tell me how that process went? My husband's employee HSA is at HealthEquity. Do we have to liquidate the assets to transfer? Are you paying fees for any transfers?

No fees for the transfer but I had to keep $25 at HE to keep the account open.

I saw no way to do an in kind transfer so the first time I did it I sold all investments and now each new transfer I do is from the cash holding only. Besides one of the reasons I moved it to Fidelity is because I didn't like the investment choices at HE.

You can initiate the transfer either from the Fidelity side or from the HE side. The first one I did was initiated from the Fidelity side. The second one was initiated from the HE side, which was about 1 week faster than initiating from Fidelity so now I always start from HE. Usually takes about 3 weeks to complete but in the spring of 2022 it took significantly longer, up to 5 or 6 weeks.

Either way you can initiate the transfer online after you've opened up the new account at Fidelity.

Cheers.

[Big Dog]

Fido is fantastic. Zero fees, and you can even use their Zero fee mutual funds

[illumination]

I switched from Lively to Fidelity. Fidelity has been great.

You almost have to have a large brokerage like Fidelity that's willing to make it a loss leader if you want some "zero fee" experience. I bounced around several HSA providers and they obviously need a way to make money off of it. Fidelity just hopes you'll sign up for other services by offering it.

[Dottie57]

My HSA is at Fidelity. I love having a debit card I can se for prescription and copays.

[2032vision]

Moved it all over from HealthEquity in early 2022. Now, my withholdings from my employer still land at HealthEquity, but I move it over to Fidelity whenever the cash balance builds up to around $1K. then rinse/repeat.

This is what I am doing as well. No complaints!

Using my HSA as a long term investment like others mentioned here. So the only things I need are low fees and good investment choices.

[fetch5482]

Moving from HealthEquity, thanks for the nudge.

Can you tell me how that process went? My husband's employee HSA is at HealthEquity. Do we have to liquidate the assets to transfer? Are you paying fees for any transfers?

For folks moving out of HealthEquity (HE) into Fidelity, yes you have to sell all your investments - HE will not allow in-kind transfer even though Fidelity does.

Steps:
1) Sell all your investments in HE. It usually takes ~2 business days to settle and show up as cash. In parallel, if you do not yet have an HSA account with Fidelity, open one with $0 balance.
Possible Tax Consequences: If you live in CA or NJ, make sure you understand the tax consequences before selling your investments. For other states, you will loose few weeks in the market between steps (1) and (4).

2) Once money shows up as cash in the HE account, go to https://answers.healthequity.com/app/an ... /a_id/2844 and click on the purple button to submit online form (you may need to re-login) and fill out the form for partial transfer out. Make sure the amount you fill in will keep at least $25 in the account so you do not get subject to account closing fees. I fill in the address for Fidelity Investments: Fidelity Investments, P.O. Box 770001, Cincinnati, OH 45277-0036 (this is the address that is listed as their TOA address on their site. Double check for accuracy as it may have changed). Rest of the fields are self-explanatory. Sign and submit the form digitally.
Possible Fees consequences: In the 4+ years I have been doing this, I have not had to pay any fees to HE - as long as you keep the account open with the $25 remaining balance. I am not 100% sure if this is employer-specific, but I believe its not. If your balance goes below $25 you will be charged an account closure fee at HE.

3) ~2 business days later, you will see a butter bar on your HE HSA account suggesting that the account is frozen and pending account closure. Don't worry, its just a bad warning message. The account will not be closed, but you cannot withdraw money until the freeze is lifted. HealthEquity customer service claimed during a chat with me that employer payroll contributions will still happen during the freeze (i.e. the freeze is only for withdrawals and claims), but I have not verified that in practice.

4) Wait 2-3 business weeks for money to show up in Fidelity and butter bar to be removed from HealthEquity. Invest the money in Fidelity however you please from this point on.
Possible Fees consequences: To the best of my knowledge, neither Fidelity nor HealthEquity charges any fee for transfer or partial liquidation of account. ETFs (such as VTI) and Some Fidelity funds (such as FZROX) are free to trade on Fidelity, however if you are buying a Vanguard mutual fund such as VTSAX you will incur commissions.

There will be very little or no communications between steps (2) and (4) - so just wait patiently.

[deltaneutral83]

I switched from Lively to Fidelity. Fidelity has been great.

You almost have to have a large brokerage like Fidelity that's willing to make it a loss leader if you want some "zero fee" experience. I bounced around several HSA providers and they obviously need a way to make money off of it. Fidelity just hopes you'll sign up for other services by offering it.

Going to guess Lively was unable to complete the transfer in kind? I will be switching from Lively to Fidelity soon enough when the fees from the Schwab/TDA merger kick in.

[MotoTrojan]

I did see the following on the Fidelity website under Minimums and Fees https://www.fidelity.com/go/hsa/investing-hsa-your-way:

"$0 for under $25,000 and 0.35% per year for $25,000 and above"

Only applies to the managed account. Regular Fidelity HSA is free.

[illumination]

I switched from Lively to Fidelity. Fidelity has been great.

You almost have to have a large brokerage like Fidelity that's willing to make it a loss leader if you want some "zero fee" experience. I bounced around several HSA providers and they obviously need a way to make money off of it. Fidelity just hopes you'll sign up for other services by offering it.

Going to guess Lively was unable to complete the transfer in kind? I will be switching from Lively to Fidelity soon enough when the fees from the Schwab/TDA merger kick in.

I think there was a minor hiccup, but it went through after a few weeks. I always knew I was on borrowed time with Lively before their shareholders decided they wanted to actually make money. They were honestly fine, better than all the previous I had used, but Fidelity has been better.

I always felt like my HSA was this "wandering" account that finally feels like it's not going anywhere. But who knows, Fidelity may decide to start charging fees also, but seems much less likely.

[riven]

I transferred from Further due to fees. Liquidated to cash and initiated the transfer with Fidelity. Took some days to complete, mostly due to Further. I currently use it for investment only and I'm perfectly happy with the decision.

[drgenefish]

thumbs up from me for Fido HSA

great customer service. free. great website. no idea what could possibly be better.

[Saving$]

I rolled mine to Fidelity a few years ago. Fidelity is great. I use it the same the OP is proposing to use theirs so I cannot comment on Fidelity's system of processing withdrawals against the HSA since I don't do that.

My recollection is that I followed a strategy detailed on a post on this site for moving the money. My recollection is also that Fidelity took care of most of the details.

The only thing I do other than check it once in awhile is add a few dollars each year. For some reason no matter how much I work on calculating meeting the exact max, the combination of my and my employer contributions never actually meets the max allowable HSA contribution. So when I do my taxes I always top it up to the max, which is very simple - I just move the correct amount online from my Fidelity brokerage to my Fidelity HSA.

I like that Fidelity includes the HSA in my full view asset allocation calculation.

[retireIn2020]

My HSA has always been Fidelity, but no complaints and no fee's. I'm 100% invested in FZROX (Fidelity Zero cost total market index) in my HSA.

[deltaneutral83]

I switched from Lively to Fidelity. Fidelity has been great.

You almost have to have a large brokerage like Fidelity that's willing to make it a loss leader if you want some "zero fee" experience. I bounced around several HSA providers and they obviously need a way to make money off of it. Fidelity just hopes you'll sign up for other services by offering it.

Going to guess Lively was unable to complete the transfer in kind? I will be switching from Lively to Fidelity soon enough when the fees from the Schwab/TDA merger kick in.

I think there was a minor hiccup, but it went through after a few weeks. I always knew I was on borrowed time with Lively before their shareholders decided they wanted to actually make money. They were honestly fine, better than all the previous I had used, but Fidelity has been better.

I always felt like my HSA was this "wandering" account that finally feels like it's not going anywhere. But who knows, Fidelity may decide to start charging fees also, but seems much less likely.

When you move from Lively/TDA to Fidelity is the transfer "from" account the Lively or TDA account # when entering online?

[illumination]

I switched from Lively to Fidelity. Fidelity has been great.

You almost have to have a large brokerage like Fidelity that's willing to make it a loss leader if you want some "zero fee" experience. I bounced around several HSA providers and they obviously need a way to make money off of it. Fidelity just hopes you'll sign up for other services by offering it.

Going to guess Lively was unable to complete the transfer in kind? I will be switching from Lively to Fidelity soon enough when the fees from the Schwab/TDA merger kick in.

I think there was a minor hiccup, but it went through after a few weeks. I always knew I was on borrowed time with Lively before their shareholders decided they wanted to actually make money. They were honestly fine, better than all the previous I had used, but Fidelity has been better.

I always felt like my HSA was this "wandering" account that finally feels like it's not going anywhere. But who knows, Fidelity may decide to start charging fees also, but seems much less likely.

When you move from Lively/TDA to Fidelity is the transfer "from" account the Lively or TDA account # when entering online?

I'm sorry, it was so many years ago that I just can't recall. I do think that part of the "hiccup" I mentioned was TDA and Lively had an issue where the "right hand didn't know what the left hand was doing". I would call Lively first and see what their protocol is. I believe they need to "release" it before TDA can allow an outbound transfer.

[deltaneutral83]

I'm sorry, it was so many years ago that I just can't recall. I do think that part of the "hiccup" I mentioned was TDA and Lively had an issue where the "right hand didn't know what the left hand was doing". I would call Lively first and see what their protocol is. I believe they need to "release" it before TDA can allow an outbound transfer.

No worries, I just initiated my transfer and used my TDA account number in the "from" field and confirmed with Fidelity over the phone this was what I am to do. I think if there is a problem on Lively's end I will have to cross that bridge with Fidelity when I get there. Prior, I have done a lot of transfers from HSA Bank to Lively (just cash) and it was relatively quick, two weeks tops so hopefully Lively doesn't slow this down unnecessarily. Both Fid/TDA said VTI can come over in kind so I really don't care if it takes a month to be honest.

[OuterBanks]

I’ve had a Fidelity HSA for over three years now. I love it. Never had to pay any fees, and the expense ratio is also 0% for the mutual fund I invest into, FZROX.

[Chrono Triggered]

I've had a Fidelity HSA for a few years now and it's been fantastic. No fees and I can invest in whatever I want.

[typical.investor]

Fidelity shocked me today. It's only my second (year) to contribute.

I placed a limit order on AVGE (not so high transaction volume ETF) at one cent below the ask of what was a big spread. It was close to the ask so I figured it's likely execute.

It didn't and a minute later I notice the bid had jumped to where my bid was and the ask even higher. Not completely unheard of.

THEN, I get this notification from Fidelity about turning on real-time quotes. I am like what??? Had I not been looking at real time when I place my trade (and the year before too)?

I didn't know they needed to be turned on .... https://www.fidelity.com/customer-servi ... ime-quotes

I'm just used to getting them at Schwab ... who sadly has no HSA.

In fairness, my cash contribution is still listed as pending (I initiated it less than 24 hours ago) and fidelity let me trade quite soon so I have no complaints, but I was really, really surprised by the real-time quotes thing. Who knew?

[Northern Flicker]

Fidelity has the best HSA offering. Just be sure you have 2-factor authentication set up on your Fidelity account.

[TarHeel2002]

Would it be a good idea to transfer over 10k at a time of the 60k from UMB to Fidelity so I’m not 60k out of the market all at once. Am I allowed to do that? Thanks!

[fetch5482]

THEN, I get this notification from Fidelity about turning on real-time quotes. I am like what??? Had I not been looking at real time when I place my trade (and the year before too)?

I didn't know they needed to be turned on .... https://www.fidelity.com/customer-servi ... ime-quotes

Thanks for the link. Turned it on for both me and wife, although given we are mostly buy-and-hold and never trade options... I am not sure we really need it.

[Northern Flicker]

Would it be a good idea to transfer over 10k at a time of the 60k from UMB to Fidelity so I’m not 60k out of the market all at once. Am I allowed to do that? Thanks!

Are the assets ETFs? See if Fidelity and UMB will support an in-kind transfer of the assets without liquidating them.

[deltaneutral83]

I've had a Fidelity HSA for a few years now and it's been fantastic. No fees and I can invest in whatever I want.

No kidding, just finished my transfer and Fid gives you the option to use dollars to buy fractional ETFs (I use VTI which is $200ish) and the fractional share that came over ACAT from TDA was put to work immediately. Had to download the Fid app though to buy fractional share, couldn't do on desktop, no problem though. May bring my Roth over because of this.

[Onlineid3089]

For people making payroll deductions to the employer sponsored HSA, how often do you do a transfer to Fidelity (or whoever else you may use)? I'm thinking of transferring to Fidelity, but I want to keep the contributions via payroll deduction for the FICA tax deduction plus the ability to get our company contribution.

As far as I can tell my HSA company is setup to have a paper form filled out/signed and faxed to them. Shouldn't be a problem to just make a bunch of copies, but I'm mostly just curious if people do transfers monthly or every pay period, or if there are any considerations around it outside of the minor inconvenience of submitting the form?

[stickstickly]

For people making payroll deductions to the employer sponsored HSA, how often do you do a transfer to Fidelity (or whoever else you may use)? I'm thinking of transferring to Fidelity, but I want to keep the contributions via payroll deduction for the FICA tax deduction plus the ability to get our company contribution.

As far as I can tell my HSA company is setup to have a paper form filled out/signed and faxed to them. Shouldn't be a problem to just make a bunch of copies, but I'm mostly just curious if people do transfers monthly or every pay period, or if there are any considerations around it outside of the minor inconvenience of submitting the form?

Lucky for you, you can initiate the whole thing from Fidelity's side online and not have to deal with faxing paper forms. My wife and I transfer ours every couple months, usually when our individual balances each exceed about $500. Just make sure your employer sponsored HSA doesn't have extra fees for doing transfers, and keep any minimum balance required by your workplace HSA so they don't close your account and/or charge you a fee.

[mariezzz]

Lucky for you, you can initiate the whole thing from Fidelity's side online and not have to deal with faxing paper forms. My wife and I transfer ours every couple months, usually when our individual balances each exceed about $500. Just make sure your employer sponsored HSA doesn't have extra fees for doing transfers, and keep any minimum balance required by your workplace HSA so they don't close your account and/or charge you a fee.

Thanks for all the advice on transferring from Health Equity to Fidelity. I likely will be doing this in the next few months ... likely will be leaving my job.

[fetch5482]

Lucky for you, you can initiate the whole thing from Fidelity's side online and not have to deal with faxing paper forms. My wife and I transfer ours every couple months, usually when our individual balances each exceed about $500. Just make sure your employer sponsored HSA doesn't have extra fees for doing transfers, and keep any minimum balance required by your workplace HSA so they don't close your account and/or charge you a fee.

Thanks for all the advice on transferring from Health Equity to Fidelity. I likely will be doing this in the next few months ... likely will be leaving my job.

If you are transferring from HealthEquity, you can also initiate the transfer directly from HealthEquity's website online. There are no fees and no paperwork needed besides submitting the online form. Instructions here:
viewtopic.php?p=7054978#p7054978
In my experience this is generally a few days faster than initiating from Fidelity via online TOA form.

[dcabler]

Lucky for you, you can initiate the whole thing from Fidelity's side online and not have to deal with faxing paper forms. My wife and I transfer ours every couple months, usually when our individual balances each exceed about $500. Just make sure your employer sponsored HSA doesn't have extra fees for doing transfers, and keep any minimum balance required by your workplace HSA so they don't close your account and/or charge you a fee.

Thanks for all the advice on transferring from Health Equity to Fidelity. I likely will be doing this in the next few months ... likely will be leaving my job.

If you are transferring from HealthEquity, you can also initiate the transfer directly from HealthEquity's website online. There are no fees and no paperwork needed besides submitting the online form. Instructions here:
viewtopic.php?p=7054978#p7054978
In my experience this is generally a few days faster than initiating from Fidelity via online TOA form.

Yep, I did the first transfer by initiating at Fidelity then a second transfer by initiating at HealthEquity. It was a few days faster by initiating at HealthEquity so that's what I've been doing. I've also been keeping the stats.

11 Transfers initiated from HealthEquity
Average number of calendar days to complete: 20.1
Fastest time: 15 calendar days
Slowest time: 38 calendar days (This was Feb 2022 and many people on the forum were reporting long times)
The majority of the transfers have been between 15 and 20 calendar days, with only 2 outliers (one at 25 days and the one at 38 days)

One thing that contributes to the amount of time to complete the transfer is that HealthEquity cuts a live check and mails it to Fidelity.

Cheers.

[deltaneutral83]

For people making payroll deductions to the employer sponsored HSA, how often do you do a transfer to Fidelity (or whoever else you may use)? I'm thinking of transferring to Fidelity, but I want to keep the contributions via payroll deduction for the FICA tax deduction plus the ability to get our company contribution.

As far as I can tell my HSA company is setup to have a paper form filled out/signed and faxed to them. Shouldn't be a problem to just make a bunch of copies, but I'm mostly just curious if people do transfers monthly or every pay period, or if there are any considerations around it outside of the minor inconvenience of submitting the form?

I went from HSA Bank to Lively and it took 2 weeks tops and would always leave a dollar in it just so there was no confusion as to close or leave open. I filled out the form on Lively (took 2 minutes) and submitted electronically (the days of faxing a wet sig are over I believe) and they took care of it with HSA Bank, money came over inside 14 days on three different occasions. I've also never had any of these banks charge me a closing fee because I simply tell that bank (on the final withdrawal like if I'm changing jobs) to give me all the money in it and don't close, therefore they don't charge a closing fee, and a $0 balance remains. If they choose to close it later due to inactivity sure fine with me.

All that said Fidelity is a game changer for me with partial ETF purchases, and they take 2-3 business days on in kind account transfers both HSA and Roth IME. I completed my HSA transfer from Lively (they were good to me for 6 years and were one of the firsts to not charge any fees or have minimums held). Fido is also a one stop shop unlike HSA Bank and Lively where they are the custodian and then TDA is the investment arm. But one day, Fido may charge and the game will change (on HSA's) yet again.