Best HSA?

[FENDERSTRYKER75]

Hello,
I currently have an HSA with HealthEquity from a former employer. Unfortunately this HSA, requires I keep $2,000 minimum before investing. Just curious if there is a better option out there? I hold my personal accounts with Vanguard. It seems like a lot of people here like Fidelity?

[ObiQuiet]

Definitely Fidelity. You can choose any investment you like, even the zero-fee ones.

[Mike Scott]

Fidelity.

[life in slices]

+3 for Fidelity - currently have health equity as my company HSA and move funds from their to my Fidelity HSA quarterly

[EarlyRetirement1]

+4 for Fidelity

[notinuse]

I have my personal accounts at Vanguard, except my HSA is at Fidelity.

[johnnyc321]

Another vote for Fidelity here. I also transfer my HealthEquity account over periodically throughout the year.

[Drew31]

Absolutely Fidelity for me. You may get someone eventually who says Lively as an alternative.

[2behappytoday]

Fidelity for the win! I'm adding my vote for Fidelity HSA, very satisfied.

[anon_investor]

+1 for Fidelity. Hands down the best HSA available, 100% free and full range of investment options and no need to keep any cash balance.

[pasadena]

I don't think you'll find anyone not recommending Fidelity's HSA here

[jumbo shrimp]

+14326 for Fidelity

My employer uses Health Equity now and I always transfer to Fidelity.

[willyd123]

Lively HSA is just as good as Fidelity. Great technology, great service, no fees and you can invest in anything you want via their brokerage partner TD Ameritrade.

[MrJedi]

Absolutely Fidelity for me. You may get someone eventually who says Lively as an alternative.

Ever since Schwab acquired TDA (and thus investment servicing for Lively) and added the cash minimum or annual fee to invest, I think that group of people has seriously dwindled.

[anon_investor]

Lively HSA is just as good as Fidelity. Great technology, great service, no fees and you can invest in anything you want via their brokerage partner TD Ameritrade.

Not anymore:
https://support.livelyme.com/hc/en-us/a ... HSA-funds-

How much does it cost to invest my HSA funds?
Lively is integrated with two industry-leading HSA investment solutions: Charles Schwab’s Schwab Health Savings Brokerage Account and Devenir’s HSA Guided Portfolio. Both solutions include the option for first-dollar investing.

• Schwab Health Savings Brokerage Account (by Charles Schwab): We offer two ways to set up your Schwab HSBA account. You can either invest with no minimum restrictions after a $24 annual fee from Lively or invest anything above $3,000 above your cash account for no additional fee from Lively. (Additional investment fees from Charles Schwab may apply.)

• HSA Guided Portfolio (by Devenir): Lively charges a 0.50% annual management fee for access to investment capabilities through the HSA Guided Portfolio by Devenir, including automated features such as rebalancing. The fee is based on invested assets and debited quarterly.

This is why a Fidelity HSA is hands down the best. No AUM or minimum cash balance.

[willyd123]

Here you go...

https://20somethingfinance.com/best-hsa-account/

[TSC15]

Cash balance requirement of $3K at Lively makes it not competitive to Fidelity’s self-directed FSA, if you want it to use it as an investment vehicle only until retirement, or not. Also: Morningstar.com/specials/the-best-has-providers-of-2022.

[WhiteMaxima]

My company HSA uses Vanguard. Vanguard is the best to me.

[anon_investor]

My company HSA uses Vanguard. Vanguard is the best to me.

It might use Vanguard funds, but Vanguard itself does not offer an HSA.

[FinanceDad]

Another recommendation of Fidelity. Don't think you can go wrong there.

I use my HSA and my wife's HSA only for investment purposes, so I can't speak to any of the debit card or spend management features Fidelity or another firm have.

[michaeljc70]

I'm at Optum and have no reason to change. They don't charge me any fees. $1000 had to stay in the account at the beginning and the rest could be invested. However, I can take out the $1000 (for qualified health expenses). I may be grandfathered in as my account was previously with Wells Fargo. My money is invested in a Vanguard institutional fund.

[deltaneutral83]

Absolutely Fidelity for me. You may get someone eventually who says Lively as an alternative.

Not anymore, they charge now with the merger with Schwab.

[fetch5482]

Fidelity++
Don't have anything to add besides what is already told in this thread. Don't overthink this - just go with Fidelity, you will not regret it.

I transfer my HSA from the employer-provided account (HealthEquity) to Fidelity each year. I am very happy with that decision.

[willyd123]

The other reason I like Lively best is that I am a Schwab client and Schwab bought TD Ameritrade which is the broker for Lively HSA so once they get things integrated, one less firm to worry about. If you already use Fidelity then using Fidelity for your HSA makes a lot of sense. By the way, if the $3,000 minimum to avoid a fee is an issue, well....

[lazydavid]

My employer just started offering an HDHP and HSA this year, and uses Fidelity as they do for 401k and RSUs. I don't have much experience yet, but am very pleased so far. You get to set your own minimum cash balance, and all contributions above that amount are automatically invested according to your preferences. I'm using that feature in $500 increments to stair-step myself at a roughly 50/50 weight up to a cash balance equal to our annual deductible, and treating it as another retirement account beyond that. You are able to leverage any of their funds, including the Zero funds--which are what I'm using.

[michaeljc70]

The other reason I like Lively best is that I am a Schwab client and Schwab bought TD Ameritrade which is the broker for Lively HSA so once they get things integrated, one less firm to worry about. If you already use Fidelity then using Fidelity for your HSA makes a lot of sense. By the way, if the $3,000 minimum to avoid a fee is an issue, well....

Though I understand you'll have investments through Schwab, they won't be tied to your other accounts and login, right?

I am asking because I have everything except my HSA with Schwab. As of now they don't offer individual HSAs AFAIK.

[fetch5482]

The other reason I like Lively best is that I am a Schwab client and Schwab bought TD Ameritrade which is the broker for Lively HSA so once they get things integrated, one less firm to worry about. If you already use Fidelity then using Fidelity for your HSA makes a lot of sense. By the way, if the $3,000 minimum to avoid a fee is an issue, well....

Though I understand you'll have investments through Schwab, they won't be tied to your other accounts and login, right?

I am asking because I have everything except my HSA with Schwab. As of now they don't offer individual HSAs AFAIK.

Schwab bought TDA several years ago. I would not hold my breath on the two merging/integrating unless Schwab publicly posts a timeline of it happening.

[michaeljc70]

The other reason I like Lively best is that I am a Schwab client and Schwab bought TD Ameritrade which is the broker for Lively HSA so once they get things integrated, one less firm to worry about. If you already use Fidelity then using Fidelity for your HSA makes a lot of sense. By the way, if the $3,000 minimum to avoid a fee is an issue, well....

Though I understand you'll have investments through Schwab, they won't be tied to your other accounts and login, right?

I am asking because I have everything except my HSA with Schwab. As of now they don't offer individual HSAs AFAIK.

Schwab bought TDA several years ago. I would not hold my breath on the two merging/integrating unless Schwab publicly posts a timeline of it happening.

Even if that happens, TDA, AFAIK, does not own Lively and therefore Schwab doesn't own Lively. For example, my Optum HSA has investments through Vanguard but that would have nothing to do with any other Vanguard account I have. Optum shows my investments on their website and I can't see anything on Vanguard's site regarding my HSA.

[deltaneutral83]

The other reason I like Lively best is that I am a Schwab client and Schwab bought TD Ameritrade which is the broker for Lively HSA so once they get things integrated, one less firm to worry about. If you already use Fidelity then using Fidelity for your HSA makes a lot of sense. By the way, if the $3,000 minimum to avoid a fee is an issue, well....

Not the best take. It makes absolutely no sense whatsoever to park $3k in cash rather than invest it because "Brokerage A" says so when "Brokerage B" says no minimum. Even at a modest 6% year in a total stock index would be $180 a year. Every single person on this thread could light a cigar with a hundred dollar bill and it's not "an issue," it's just common sense not to do so.

[pasadena]

By the way, if the $3,000 minimum to avoid a fee is an issue, well....

I mean, leaving $3k to earn nothing instead of investing it - be it in a money market - is a fee in and of itself.

In today's environment, $3k at 4.75% (SPAXX, Fidelity's settlement fund) is $142.50. That's a huge fee to me (unless Lively does pay you interests on that money? How much?)

[willyd123]

You can invest those dollars as well...

[michaeljc70]

By the way, if the $3,000 minimum to avoid a fee is an issue, well....

I mean, leaving $3k to earn nothing instead of investing it - be it in a money market - is a fee in and of itself.

In today's environment, $3k at 4.75% (SPAXX, Fidelity's settlement fund) is $142.50. That's a huge fee to me (unless Lively does pay you interests on that money? How much?)

I'm re-evaluating my HSA. It has a $1k non-investable portion. So, maybe $50 a year. Before when you could only get .5% it didn't matter.

[MrJedi]

You're better off just paying the $24 annual fee rather than leave that much dead cash.

My employer HSA (through BOA) has $500 cash min to invest. I stick with it because at least I can do cafeteria plan deductions and automatic investments from payroll and into VTSAX above the minimum. Not worth it to continually roll out the money every paycheck for me. But as soon as I am done with the employer it's going to Fidelity.

[tj]

I have a TDA HSA through HSA bank from my employer, I wonder when that will be rebranded to Schwab, and if it'll be visible through my Schwab login. I also have a fidelity HSA. For whatever reason, none of the other brokerages have decided to compete with fidelity in this space and therefore fidelity is the only one that gets recommended.

[michaeljc70]

I have a TDA HSA through HSA bank from my employer, I wonder when that will be rebranded to Schwab, and if it'll be visible through my Schwab login. I also have a fidelity HSA. For whatever reason, none of the other brokerages have decided to compete with fidelity in this space and therefore fidelity is the only one that gets recommended.

I think the market for individual (non-corporate) HSAs is pretty small.

[tj]

I have a TDA HSA through HSA bank from my employer, I wonder when that will be rebranded to Schwab, and if it'll be visible through my Schwab login. I also have a fidelity HSA. For whatever reason, none of the other brokerages have decided to compete with fidelity in this space and therefore fidelity is the only one that gets recommended.

I think the market for individual (non-corporate) HSAs is pretty small.

It was big enough for fidelity, or perhaps they were gambling that people will move their other accounts there also.

[michaeljc70]

I have a TDA HSA through HSA bank from my employer, I wonder when that will be rebranded to Schwab, and if it'll be visible through my Schwab login. I also have a fidelity HSA. For whatever reason, none of the other brokerages have decided to compete with fidelity in this space and therefore fidelity is the only one that gets recommended.

I think the market for individual (non-corporate) HSAs is pretty small.

It was big enough for fidelity, or perhaps they were gambling that people will move their other accounts there also.

I would think if you already have the infrastructure for corporate HSA accounts it wouldn't be that much effort to offer individual ones. I assume corporations are paying for this service and most individuals probably don't want to pay for it.

I've noticed on the ACA exchange (at least in my area) there are not many HSA compatible plans even though most plans have very high deductibles. It is other requirements that knock them out from being HSA compatible.

[michaeljc70]

Based on this thread, I started a transfer from Optum to Fidelity. It said it should take 6 days on average. It has been more than a week and now says the estimated completion date is 7/16! That is crazy. Isn't this done electronically? That being said, I don't use or make changes to the account so it is sort of moot. But I will be investing the $1k that I can't invest at Optum at Fidelity.

[tj]

Based on this thread, I started a transfer from Optum to Fidelity. It said it should take 6 days on average. It has been more than a week and now says the estimated completion date is 7/16! That is crazy. Isn't this done electronically? That being said, I don't use or make changes to the account so it is sort of moot. But I will be investing the $1k that I can't invest at Optum at Fidelity.

It's absolutely not done electronically. It took a while for me to transfer from HealthEquity to Fidelty

[Jyn]

Sorry if it's obvious, but my Cigna HDHP requires $1,000 minimum and with TD Ameritrade notifying me they're converting everyone to Schwab, I'm curious how to move over to Fidelity.

So do you open an individual HSA account with Fidelity and transfer everything from the employer HSA each month?

[rene]

For people that transfer every year to Fidelity…

Is this done though a trustee to trustee transfer?

Is this process the typical paper form that needs to be mailed by UPS, ie it’s not online?

I have done this type of transfer before and it took weeks before the funds finally settled (at HSA Bank). Is Fidelity somehow faster?

I put a huge premium on simplicity. Do people that transfer every year first move funds to cash and then execute a trustee to trustee transfer to Fidelity?

[fetch5482]

For people that transfer every year to Fidelity…

Is this done though a trustee to trustee transfer?

I use the transfer of assets (TOA) form

Is this process the typical paper form that needs to be mailed by UPS, ie it’s not online?

It depends - Fidelity does support online submit for forms where the account is transferred from some brokerages. For my HSA brokerage (HealthEquity) I need to either mail in the forms or drop them in at the fidelity branch office. I always drop them in.

I have done this type of transfer before and it took weeks before the funds finally settled (at HSA Bank). Is Fidelity somehow faster?

2-3 weeks sounds about right based on my experience transferring HealthEquity to Fidelity HSA.

I put a huge premium on simplicity. Do people that transfer every year first move funds to cash and then execute a trustee to trustee transfer to Fidelity?

I just keep the money as cash in my source HSA account since HealthEquity does not support trustee-to-trustee in-kind transfers. If your brokerage supports it, I think Fidelity will allow you to transfer in-kind.

[michaeljc70]

Based on this thread, I started a transfer from Optum to Fidelity. It said it should take 6 days on average. It has been more than a week and now says the estimated completion date is 7/16! That is crazy. Isn't this done electronically? That being said, I don't use or make changes to the account so it is sort of moot. But I will be investing the $1k that I can't invest at Optum at Fidelity.

It's absolutely not done electronically. It took a while for me to transfer from HealthEquity to Fidelty

After 10 days I got an email from Optum saying they cannot complete my transfer as they don't do in kind transfers with securities. I guess I have to sell everything, transfer the cash, and then buy it back. I really don't like doing that because if there is a big swing in the market to the upside I lose out. Obviously, I know it could go the other way. If this is a couple days, less important. But who knows how long it will take if it took 10 days for them to tell me they can't do a transfer. The account is $135k so not a fortune, but a few percent to the upside during the transfer and the $50 a year I save isn't worth it.

[MrJedi]

Based on this thread, I started a transfer from Optum to Fidelity. It said it should take 6 days on average. It has been more than a week and now says the estimated completion date is 7/16! That is crazy. Isn't this done electronically? That being said, I don't use or make changes to the account so it is sort of moot. But I will be investing the $1k that I can't invest at Optum at Fidelity.

It's absolutely not done electronically. It took a while for me to transfer from HealthEquity to Fidelty

After 10 days I got an email from Optum saying they cannot complete my transfer as they don't do in kind transfers with securities. I guess I have to sell everything, transfer the cash, and then buy it back. I really don't like doing that because if there is a big swing in the market to the upside I lose out. Obviously, I know it could go the other way. If this is a couple days, less important. But who knows how long it will take if it took 10 days for them to tell me they can't do a transfer. The account is $135k so not a fortune, but a few percent to the upside during the transfer and the $50 a year I save isn't worth it.

Can you rebalance in another account during the transfer? I.e. sell the bond and buy the stock while HSA is liquidated.

[tj]

Lively HSA is just as good as Fidelity. Great technology, great service, no fees and you can invest in anything you want via their brokerage partner TD Ameritrade.

Not anymore:
https://support.livelyme.com/hc/en-us/a ... HSA-funds-

How much does it cost to invest my HSA funds?
Lively is integrated with two industry-leading HSA investment solutions: Charles Schwab’s Schwab Health Savings Brokerage Account and Devenir’s HSA Guided Portfolio. Both solutions include the option for first-dollar investing.

• Schwab Health Savings Brokerage Account (by Charles Schwab): We offer two ways to set up your Schwab HSBA account. You can either invest with no minimum restrictions after a $24 annual fee from Lively or invest anything above $3,000 above your cash account for no additional fee from Lively. (Additional investment fees from Charles Schwab may apply.)

• HSA Guided Portfolio (by Devenir): Lively charges a 0.50% annual management fee for access to investment capabilities through the HSA Guided Portfolio by Devenir, including automated features such as rebalancing. The fee is based on invested assets and debited quarterly.

This is why a Fidelity HSA is hands down the best. No AUM or minimum cash balance.

Interesting that HSA Bank has a different deal with Schwab for Lively vs GEHA. Got the email from TD Ameritrade today that it's moving to Schwab on Labor Day Weekend.

#1) Devenir is a 0.30% annual fee rather than 0.50%
#2) Schwab is $12.50 per quarter fee, the pricing terms did not mention anything about a minimum cash balance.

[dcabler]

Hello,
I currently have an HSA with HealthEquity from a former employer. Unfortunately this HSA, requires I keep $2,000 minimum before investing. Just curious if there is a better option out there? I hold my personal accounts with Vanguard. It seems like a lot of people here like Fidelity?

Yes Fidelity. And also, yes, employer has HealthEquity. As soon as I found out I could transfer money to Fidelity (where pretty much everything else I hold is), I did so leaving only the required $25 in the account at HealthEquity to keep it open. After that, I did regular transfers every 3 paychecks (approx $1000). This let me be 100% invested and invested in exactly what I wanted instead of the choices given by HealthEquity and with no extra fees imposed like HealthEquity does for investing.

I've been doing this since 2021 and except for a couple of outliers, the total time from request to transfer to it arriving in my account at Fidelity has been between 15 and 20 calendar days. HealthEquity apparently does this by sending a live check to Fidelity.

Retired a couple of weeks ago and final contribution just showed up at HealthEquity this morning. Moving it all to Fidelity, leaving exactly $25 in the account and then closing it once the money arrives at Fidelity. One less account to keep track of in my tracking spreadsheet!

Cheers.

[dcabler]

I have a TDA HSA through HSA bank from my employer, I wonder when that will be rebranded to Schwab, and if it'll be visible through my Schwab login. I also have a fidelity HSA. For whatever reason, none of the other brokerages have decided to compete with fidelity in this space and therefore fidelity is the only one that gets recommended.

I think the market for individual (non-corporate) HSAs is pretty small.

It was big enough for fidelity, or perhaps they were gambling that people will move their other accounts there also.

I would think if you already have the infrastructure for corporate HSA accounts it wouldn't be that much effort to offer individual ones. I assume corporations are paying for this service and most individuals probably don't want to pay for it.

I've noticed on the ACA exchange (at least in my area) there are not many HSA compatible plans even though most plans have very high deductibles. It is other requirements that knock them out from being HSA compatible.

In my area we have both HSA and non-HSA compatible plans. One thing that's consistent here, though, is that the HSA-compatible plans all have higher premiums than the non-HSA compatible plans.

Cheers

[anon_investor]

Based on this thread, I started a transfer from Optum to Fidelity. It said it should take 6 days on average. It has been more than a week and now says the estimated completion date is 7/16! That is crazy. Isn't this done electronically? That being said, I don't use or make changes to the account so it is sort of moot. But I will be investing the $1k that I can't invest at Optum at Fidelity.

It's absolutely not done electronically. It took a while for me to transfer from HealthEquity to Fidelty

After 10 days I got an email from Optum saying they cannot complete my transfer as they don't do in kind transfers with securities. I guess I have to sell everything, transfer the cash, and then buy it back. I really don't like doing that because if there is a big swing in the market to the upside I lose out. Obviously, I know it could go the other way. If this is a couple days, less important. But who knows how long it will take if it took 10 days for them to tell me they can't do a transfer. The account is $135k so not a fortune, but a few percent to the upside during the transfer and the $50 a year I save isn't worth it.

Can you rebalance in another account during the transfer? I.e. sell the bond and buy the stock while HSA is liquidated.

+1, doing the rebalance in an IRA or 401k would create no taxes.

[michaeljc70]

Based on this thread, I started a transfer from Optum to Fidelity. It said it should take 6 days on average. It has been more than a week and now says the estimated completion date is 7/16! That is crazy. Isn't this done electronically? That being said, I don't use or make changes to the account so it is sort of moot. But I will be investing the $1k that I can't invest at Optum at Fidelity.

It's absolutely not done electronically. It took a while for me to transfer from HealthEquity to Fidelty

After 10 days I got an email from Optum saying they cannot complete my transfer as they don't do in kind transfers with securities. I guess I have to sell everything, transfer the cash, and then buy it back. I really don't like doing that because if there is a big swing in the market to the upside I lose out. Obviously, I know it could go the other way. If this is a couple days, less important. But who knows how long it will take if it took 10 days for them to tell me they can't do a transfer. The account is $135k so not a fortune, but a few percent to the upside during the transfer and the $50 a year I save isn't worth it.

Can you rebalance in another account during the transfer? I.e. sell the bond and buy the stock while HSA is liquidated.

Sure, but what happens if the bonds move? It's not like they don't fluctuate. I'll probably just take my chances and hope for the best.

[MrJedi]

Based on this thread, I started a transfer from Optum to Fidelity. It said it should take 6 days on average. It has been more than a week and now says the estimated completion date is 7/16! That is crazy. Isn't this done electronically? That being said, I don't use or make changes to the account so it is sort of moot. But I will be investing the $1k that I can't invest at Optum at Fidelity.

It's absolutely not done electronically. It took a while for me to transfer from HealthEquity to Fidelty

After 10 days I got an email from Optum saying they cannot complete my transfer as they don't do in kind transfers with securities. I guess I have to sell everything, transfer the cash, and then buy it back. I really don't like doing that because if there is a big swing in the market to the upside I lose out. Obviously, I know it could go the other way. If this is a couple days, less important. But who knows how long it will take if it took 10 days for them to tell me they can't do a transfer. The account is $135k so not a fortune, but a few percent to the upside during the transfer and the $50 a year I save isn't worth it.

Can you rebalance in another account during the transfer? I.e. sell the bond and buy the stock while HSA is liquidated.

Sure, but what happens if the bonds move? It's not like they don't fluctuate. I'll probably just take my chances and hope for the best.

Yes, but probably an order of magnitude less sensitivity than stocks.