[Fidelity Health Savings Account Mega-Thread]

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killjoy2012
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by killjoy2012 » Sat Nov 17, 2018 8:15 pm

Just dropped the ToA form in the postal mail as well, transferring out of Lively.

tj
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by tj » Sat Nov 17, 2018 8:30 pm

honduranhurricane wrote:
Sat Nov 17, 2018 7:09 pm
whodidntante wrote:
Sat Nov 17, 2018 11:50 am
tj wrote:
Sat Nov 17, 2018 11:37 am
Does anyone know if Fidelity support Institutional class Vanguard funds? That's what I have in my HealthEquity account and wondering if I'd need to sell before transferring.
I don't know, but I doubt it. Fidelity's own peasant class index funds have extremely low ERs, sometimes lower than Vanguard institutional shares. So maybe it's not a big concern.
I just did this, had to sell all Vanguard funds at Health Equity and transfer cash. Annoying but, oh well.
Did you have to fill anything out at HealthEquity or was the signed Fidelity form sufficient?

tj
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by tj » Sat Nov 17, 2018 9:00 pm

b0B wrote:
Sat Nov 17, 2018 8:45 pm
tj wrote:
Sat Nov 17, 2018 8:30 pm
honduranhurricane wrote:
Sat Nov 17, 2018 7:09 pm
whodidntante wrote:
Sat Nov 17, 2018 11:50 am
tj wrote:
Sat Nov 17, 2018 11:37 am
Does anyone know if Fidelity support Institutional class Vanguard funds? That's what I have in my HealthEquity account and wondering if I'd need to sell before transferring.
I don't know, but I doubt it. Fidelity's own peasant class index funds have extremely low ERs, sometimes lower than Vanguard institutional shares. So maybe it's not a big concern.
I just did this, had to sell all Vanguard funds at Health Equity and transfer cash. Annoying but, oh well.
Did you have to fill anything out at HealthEquity or was the signed Fidelity form sufficient?
I'll add to this question. Could you do it purely online from the Fidelity side?
No you can't do it purely online. Fidelity generates a PDF that you have to print out and sign, hence my question. :mrgreen:

schildi
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by schildi » Sat Nov 17, 2018 9:01 pm

aristotelian wrote:
Sat Nov 17, 2018 6:37 pm
Based on the info I received from TD, there will be a $50 transfer fee on their side unless you liquidate all shares.
So no fee from TDA if you transfer cash only?
And the $50, is that a fixed fee, or per position (or something similarly crazy)?

tj
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by tj » Sat Nov 17, 2018 9:23 pm

b0B wrote:
Sat Nov 17, 2018 9:22 pm
tj wrote:
Sat Nov 17, 2018 9:00 pm
b0B wrote:
Sat Nov 17, 2018 8:45 pm
tj wrote:
Sat Nov 17, 2018 8:30 pm
honduranhurricane wrote:
Sat Nov 17, 2018 7:09 pm

I just did this, had to sell all Vanguard funds at Health Equity and transfer cash. Annoying but, oh well.
Did you have to fill anything out at HealthEquity or was the signed Fidelity form sufficient?
I'll add to this question. Could you do it purely online from the Fidelity side?
No you can't do it purely online. Fidelity generates a PDF that you have to print out and sign, hence my question. :mrgreen:
Okay. Some people have said they had to do paper/mail, while others somehow managed it all online (perhaps it depends on what they're doing, but maybe it could depend on how you navigate through the process). (Thence my question. :happy )
Do you actually have to mail it? I was just going to find a Fidelity office and drop it off.

Ostentatious
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Ostentatious » Sat Nov 17, 2018 9:32 pm

jeffyscott wrote:
Sat Nov 17, 2018 3:24 pm
Ostentatious wrote:
Sat Nov 17, 2018 2:49 pm
To transfer or not to transfer? I have Optum Bank with $3 monthly fee and invest all in the Vanguard S & P 500. Not sure if it worth it to transfer. Transfer fee seems to be just $20.
Doesn't Optum charge an asset fee, in addition to the $3/month?
No. No other fee beside the monthly investment fee.

ninjab
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by ninjab » Sat Nov 17, 2018 9:32 pm

this came out of no where and just a little too late for me, I just opened an HSA with Lively and invested this years contribution in TDA maybe a month ago. Would of much rather started it with Fidelity were much of my other accounts are. Seems like a pain to move it from Lively/TDA to Fidelity with potentially $25 fee from lively and $50 from TDA if doing in kind transfer. Folks who are trying this in kind transfer please update us on the transfer fees!

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jhfenton
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by jhfenton » Sat Nov 17, 2018 9:57 pm

b0B wrote:
Sat Nov 17, 2018 9:22 pm
Okay. Some people have said they had to do paper/mail, while others somehow managed it all online (perhaps it depends on what they're doing, but maybe it could depend on how you navigate through the process). (Thence my question. :happy )
I believe the difference is whether you're transferring from a straight-up brokerage account as opposed to an HSA bank or mutual fund account. It seems that those of us transferring directly from a TD Ameritrade HSA account were able to request a transfer entirely online.
ninjab wrote:
Sat Nov 17, 2018 9:32 pm
this came out of no where and just a little too late for me, I just opened an HSA with Lively and invested this years contribution in TDA maybe a month ago. Would of much rather started it with Fidelity were much of my other accounts are. Seems like a pain to move it from Lively/TDA to Fidelity with potentially $25 fee from lively and $50 from TDA if doing in kind transfer. Folks who are trying this in kind transfer please update us on the transfer fees!
I'll will post an update on what happens with the $50 and TD Ameritrade, but I am quite confident that Lively will not charge you the $25. Unlike your TD Ameritrade account, you don't directly have an account with Choice.d

ninjab
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by ninjab » Sat Nov 17, 2018 10:18 pm

Will see how yours goes and make my transfer accordingly. My money is just in SPTM, if I need to liquify it before transferring over its only $3450 being out of the market since its only this years contribution in the account.
Also looks like I do need to wait at least a week more to hit the 30 day mark on my SPTM holding to avoid the 30day short term trading fee from selling it.

terran
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by terran » Sat Nov 17, 2018 11:11 pm

b0B wrote:
Sat Nov 17, 2018 9:46 pm
tj wrote:
Sat Nov 17, 2018 9:23 pm
Do you actually have to mail it? I was just going to find a Fidelity office and drop it off.
Fidelity has offices?! :shock:
Yes, they're all over the place. Concentrated in the usual places of course, but quite a few in the "middle" too:https://www.fidelity.com/branches/overview

honduranhurricane
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Location: boston, ma

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by honduranhurricane » Sat Nov 17, 2018 11:28 pm

b0B wrote:
Sat Nov 17, 2018 8:45 pm
tj wrote:
Sat Nov 17, 2018 8:30 pm
honduranhurricane wrote:
Sat Nov 17, 2018 7:09 pm
whodidntante wrote:
Sat Nov 17, 2018 11:50 am
tj wrote:
Sat Nov 17, 2018 11:37 am
Does anyone know if Fidelity support Institutional class Vanguard funds? That's what I have in my HealthEquity account and wondering if I'd need to sell before transferring.
I don't know, but I doubt it. Fidelity's own peasant class index funds have extremely low ERs, sometimes lower than Vanguard institutional shares. So maybe it's not a big concern.
I just did this, had to sell all Vanguard funds at Health Equity and transfer cash. Annoying but, oh well.
Did you have to fill anything out at HealthEquity or was the signed Fidelity form sufficient?
I'll add to this question. Could you do it purely online from the Fidelity side?
I have not gotten that far yet. The FIDO site indicated that that cannot transfer the Vanguard funds held at Health Equity (HE). So I await HE executing the fund sales I initiated. Then I will go after the next step.

aristotelian
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by aristotelian » Sun Nov 18, 2018 2:41 am

schildi wrote:
Sat Nov 17, 2018 9:01 pm
aristotelian wrote:
Sat Nov 17, 2018 6:37 pm
Based on the info I received from TD, there will be a $50 transfer fee on their side unless you liquidate all shares.
So no fee from TDA if you transfer cash only?
And the $50, is that a fixed fee, or per position (or something similarly crazy)?
Yes, they said free to transfer cash, $50 for the whole account, I assume.

mx711yam
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by mx711yam » Sun Nov 18, 2018 8:07 am

So guidance to get out of Saturna closing fee is pull all cash then close?

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cookymonster
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by cookymonster » Sun Nov 18, 2018 8:58 am

I have my Saturna HSA invested mostly in a Fidelity fund. It would cost me $25 just to sell the fund.

I am going to keep it along with $1 in an NTF, which I'll trade annually to avoid the inactivity fee, and hope that Fidelity at some point buys them out.

It's more hassle than I'd like, but I'm allergic to paying fees.

Quickblue02
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Quickblue02 » Sun Nov 18, 2018 10:03 am

I just added an individual HSA accont in Fidelity's website. I also completed my HSA PDF transfer form to move my existing HSA funds from HSA Bank to Fidelity and mailed into Fidelity. Thanks for all you help.

jadedfalcons
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by jadedfalcons » Sun Nov 18, 2018 10:25 am

mx711yam wrote:
Sun Nov 18, 2018 8:07 am
So guidance to get out of Saturna closing fee is pull all cash then close?
Given that Saturna is a brokerage account, I'm wondering if couldn't be transferred as is?

danaht
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by danaht » Sun Nov 18, 2018 11:36 am

jadedfalcons wrote:
Sun Nov 18, 2018 10:25 am
mx711yam wrote:
Sun Nov 18, 2018 8:07 am
So guidance to get out of Saturna closing fee is pull all cash then close?
Given that Saturna is a brokerage account, I'm wondering if couldn't be transferred as is?
If these are mutual funds - then only if Fidelity accepts those particular mutual funds. If it's stocks or ETFs - then those should be able to transfer.

mptfan
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by mptfan » Sun Nov 18, 2018 11:45 am

Quickblue02 wrote:
Sun Nov 18, 2018 10:03 am
I just added an individual HSA accont in Fidelity's website. I also completed my HSA PDF transfer form to move my existing HSA funds from HSA Bank to Fidelity and mailed into Fidelity. Thanks for all you help.
Where did you find the HSA PDF transfer form?

aristotelian
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by aristotelian » Sun Nov 18, 2018 12:53 pm

jadedfalcons wrote:
Sun Nov 18, 2018 10:25 am
mx711yam wrote:
Sun Nov 18, 2018 8:07 am
So guidance to get out of Saturna closing fee is pull all cash then close?
Given that Saturna is a brokerage account, I'm wondering if couldn't be transferred as is?
They still may charge a transfer or account closing fee!

mx711yam
Posts: 165
Joined: Thu Apr 11, 2013 9:51 am

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by mx711yam » Sun Nov 18, 2018 12:57 pm

aristotelian wrote:
Sun Nov 18, 2018 12:53 pm
jadedfalcons wrote:
Sun Nov 18, 2018 10:25 am
mx711yam wrote:
Sun Nov 18, 2018 8:07 am
So guidance to get out of Saturna closing fee is pull all cash then close?
Given that Saturna is a brokerage account, I'm wondering if couldn't be transferred as is?
They still may charge a transfer or account closing fee!
Sorry didn't clarify well enough. That is what I'm trying to do is avoid the $75 closure fee.

schildi
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Joined: Sat Nov 17, 2018 3:13 pm

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by schildi » Sun Nov 18, 2018 2:36 pm

aristotelian wrote:
Sun Nov 18, 2018 2:41 am
Yes, they said free to transfer cash, $50 for the whole account, I assume.
That's odd. This page:
https://www.tdameritrade.com/pricing/br ... -fees.page
Says it's $75, regardless of positions, cash, etc.
I am assuming that this would be looked at as a "full transfer", right?


Transfers4
TD Ameritrade
Outbound full account transfer $75
Outbound partial account transfer FREE
Wires (outgoing) domestic or international $25

tj
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by tj » Sun Nov 18, 2018 2:38 pm

mptfan wrote:
Sun Nov 18, 2018 11:45 am
Quickblue02 wrote:
Sun Nov 18, 2018 10:03 am
I just added an individual HSA accont in Fidelity's website. I also completed my HSA PDF transfer form to move my existing HSA funds from HSA Bank to Fidelity and mailed into Fidelity. Thanks for all you help.
Where did you find the HSA PDF transfer form?

Open an hsa account online, it auto populates the PDF

danaht
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by danaht » Sun Nov 18, 2018 3:09 pm

schildi wrote:
Sun Nov 18, 2018 2:36 pm
aristotelian wrote:
Sun Nov 18, 2018 2:41 am
Yes, they said free to transfer cash, $50 for the whole account, I assume.
That's odd. This page:
https://www.tdameritrade.com/pricing/br ... -fees.page
Says it's $75, regardless of positions, cash, etc.
I am assuming that this would be looked at as a "full transfer", right?


Transfers4
TD Ameritrade
Outbound full account transfer $75
Outbound partial account transfer FREE
Wires (outgoing) domestic or international $25
That's what is so great about not being an early bird in this case. We can wait 5 days and see if these first transfers are charged any fees. Also, I was thinking that someone could try leaving $5 to $10 in the TD Ameritrade account to avoid the full transfer fee. I am curious to see what happens. Also, in the big scheme of things - $75 is not a big deal.

DavidRoseMountain
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by DavidRoseMountain » Sun Nov 18, 2018 3:19 pm

mx711yam wrote:
Sun Nov 18, 2018 12:57 pm
aristotelian wrote:
Sun Nov 18, 2018 12:53 pm
jadedfalcons wrote:
Sun Nov 18, 2018 10:25 am
mx711yam wrote:
Sun Nov 18, 2018 8:07 am
So guidance to get out of Saturna closing fee is pull all cash then close?
Given that Saturna is a brokerage account, I'm wondering if couldn't be transferred as is?
They still may charge a transfer or account closing fee!
Sorry didn't clarify well enough. That is what I'm trying to do is avoid the $75 closure fee.
I don't think there's a way to avoid the $75 closure fee.
But after 3 or 4 years in a Fidelity HSA, you will have made up for that closure fee since Fidelity charges no yearly fees.

itworks
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by itworks » Sun Nov 18, 2018 3:19 pm

Great news that I have been trying to find a new home for my dangling HSA managed by OptumBank. A few quick questions:
1. I only have one fund, the Vanguard Total Stock Admiral Shares (VTSAX). Can I do in-kind transfer into Fidelity HSA? My understanding is Admiral class is always something one has to double check eligibility, not guaranteed for in-kind.
2. Any promotion/offer to apply given it is a sizable amount?

Thanks!

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southerndoc
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by southerndoc » Sun Nov 18, 2018 3:20 pm

Debit cards are available for those that don't want to use their credit cards: https://www.fidelity.com/static/moneymo ... ways.shtml

Unfortunately my open enrollment for 2019 has already closed. I had elected to put $290 every 2 weeks into my Health Equity HSA. I can't change it. I have $2k remaining for 2018 and will fund the Fidelity HSA that way. I will transfer/close my Health Equity account at the beginning of 2020 and elect not to have any funds withheld in 2020 since my PEO won't fund Fidelity's HSA (they have a contract with Health Equity).

totoroto
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by totoroto » Sun Nov 18, 2018 3:21 pm

Atgard wrote:
Sat Nov 17, 2018 4:10 pm
depressed wrote:
Sat Nov 17, 2018 2:52 pm
Hello. I opened my HSA at Fidelity, but I haven't been able to find any way to do an indirect transfer of my HSA account (currently in a bank account) so that the contribution is marked as a rollover contribution rather than a 2018 contribution. I'll call to find out whether it's possible on Monday. In the meantime, did anyone else find a way to do the once-very-12-months indirect transfer? Thanks.
I am at this step too. I opened the Fidelity HSA very easily online. Set up a link to my existing HSA (which is just cash in a checking account at a local credit union). Now it's letting me transfer funds from old HSA custodian into my Fidelity HSA account. It pops up a window showing me 2018 and 2019 individual & family HSA limits, and says "contributions apply to 2018 tax year."

So I'm a bit afraid to go forward with it, I don't want the whole rollover (several years' worth of contributions) to be considered a 2018 contribution instead of a rollover.
Just make sure you report the rollover on line 14b of form 8889.
https://www.irs.gov/pub/irs-pdf/f8889.pdf

TetrisCollider
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by TetrisCollider » Sun Nov 18, 2018 3:23 pm

Great information and details (my first post here).

One item that has not been mentioned is the timing of distribution for Medical Bills vs WHEN an HSA account has been opened. I currently have two HSA accounts - the newest one was created with Further/SelectAccount HSA provider. When I was opening that account and was reviewing details, they specifically mentioned that I can only request distribution of funds for Medical bills from that account for bills that I incur AFTER opening the account. This is one of the reasons I still have not closed my first, much older, HSA account. Here is a snippet from IRS Publication 969 (2017), Health Savings Accounts and Other Tax-Favored Health Plans:

"You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish the HSA"

Since most folks on this forum treat their HSA as an investment account, I imagine you potentially are sitting on a number of old medical bills that you would try to get reimbursed at a later date. So closing previous HSA accounts could possibly become a problem during distribution/reimbursement.

And if I am interpreting this rule incorrectly, would love to hear a different opinion.
For some reason, people that know nothing, seem to know everything...

mptfan
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by mptfan » Sun Nov 18, 2018 3:46 pm

TetrisCollider wrote:
Sun Nov 18, 2018 3:23 pm
And if I am interpreting this rule incorrectly, would love to hear a different opinion.
I think you are interpreting the rule incorrectly. If you incur medical expenses after opening an HSA account, then it does not matter when the account was closed, the expense was still incurred after opening the account and you can reimburse yourself for the expense from any HSA account, and I don't think it matters whether you reimburse yourself from that particular HSA account or another HSA account that was opened later, especially when the first HSA account was transferred to the second HSA account from which you were reimbursed. I could be wrong, but that is my interpretation.
Last edited by mptfan on Sun Nov 18, 2018 3:49 pm, edited 2 times in total.

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jeffyscott
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by jeffyscott » Sun Nov 18, 2018 3:47 pm

Atgard wrote:
Sat Nov 17, 2018 4:10 pm
depressed wrote:
Sat Nov 17, 2018 2:52 pm
Hello. I opened my HSA at Fidelity, but I haven't been able to find any way to do an indirect transfer of my HSA account (currently in a bank account) so that the contribution is marked as a rollover contribution rather than a 2018 contribution. I'll call to find out whether it's possible on Monday. In the meantime, did anyone else find a way to do the once-very-12-months indirect transfer? Thanks.
I am at this step too. I opened the Fidelity HSA very easily online. Set up a link to my existing HSA (which is just cash in a checking account at a local credit union). Now it's letting me transfer funds from old HSA custodian into my Fidelity HSA account. It pops up a window showing me 2018 and 2019 individual & family HSA limits, and says "contributions apply to 2018 tax year."

So I'm a bit afraid to go forward with it, I don't want the whole rollover (several years' worth of contributions) to be considered a 2018 contribution instead of a rollover.
If it were me, I would not do it that way, in this case. Maybe Fidelity thinks it is a contribution because it is coming from a bank account? Seems like that could create a hassle.

I would contact the current custodian and you should be able to withdraw from them as a transfer, they will give you a check made out to Fidelity. The form from my current custodian has a check box for transfers that says: Transfer – Check will be made payable to the receiving Administrator/Trustee/Custodian for the benefit of the HSA Accountholder and mailed to the address you provide below. It is the HSAAccountholder’s responsibility to forward the check to the new Administrator/Trustee/Custodian.

I am doing it that way, due Fidelity saying it will take 27 days and that I can only transfer cash, unless I first move it from Admiral shares to some other fund. Mine is only in a bond fund, so not too worried about being out of the market, but I don't want it out for a month.
Time is your friend; impulse is your enemy. - John C. Bogle

Spirit Rider
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Spirit Rider » Sun Nov 18, 2018 4:19 pm

southerndoc wrote:
Sun Nov 18, 2018 3:20 pm
Unfortunately my open enrollment for 2019 has already closed. I had elected to put $290 every 2 weeks into my Health Equity HSA. I can't change it. I have $2k remaining for 2018 and will fund the Fidelity HSA that way. I will transfer/close my Health Equity account at the beginning of 2020 and elect not to have any funds withheld in 2020 since my PEO won't fund Fidelity's HSA (they have a contract with Health Equity).
Keep in mind that contributions by payroll deduction through a cafeteria plan are income/FICA tax exempt. Direct contributions are deductible but are not FICA tax exempt. You will have to decide if still making those payroll deductions and doing a free rollover once per 12 month period is worth it.

Spirit Rider
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Spirit Rider » Sun Nov 18, 2018 4:32 pm

mptfan wrote:
Sun Nov 18, 2018 3:46 pm
TetrisCollider wrote:
Sun Nov 18, 2018 3:23 pm
And if I am interpreting this rule incorrectly, would love to hear a different opinion.
I think you are interpreting the rule incorrectly. If you incur medical expenses after opening an HSA account, then it does not matter when the account was closed, the expense was still incurred after opening the account and you can reimburse yourself for the expense from any HSA account, and I don't think it matters whether you reimburse yourself from that particular HSA account or another HSA account that was opened later, especially when the first HSA account was transferred to the second HSA account from which you were reimbursed. I could be wrong, but that is my interpretation.
@mptfan you are correct with limited caveats.

From IRS Notice 2008-59, Q&A-38. When an HSA is established, Q&A-40. Establishment date for rollovers and
Q&A-41. Establishment date for successive HSAs.

Q-38. When is an HSA established?
A-38. An HSA is an exempt trust established through a written governing instrument under state law. Section 223(d)(1). State trust law determines when an HSA is established. Most state trust laws require that for a trust to exist, an asset must be held in trust; thus, most state trust laws require that a trust must be funded to be established. Whether the account beneficiary’s signature is required to establish the trust also depends on state law.

Q-40. When is an HSA established if the funds in the HSA were rolled over or transferred from an Archer MSA or another HSA?
A-40. An HSA that is funded by amounts rolled over or transferred from an Archer MSA or another HSA is established as of the date the prior account was established.

Q-41. On what date is an HSA established if the account beneficiary had previously established an HSA?
A-41. If an account beneficiary establishes an HSA, and later establishes another HSA, any later HSA is deemed to be established when the first HSA was established if the account beneficiary has an HSA with a balance greater than zero at any time during the 18-month period ending on the date the later HSA is established.

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indexfundfan
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by indexfundfan » Sun Nov 18, 2018 4:55 pm

schildi wrote:
Sun Nov 18, 2018 2:36 pm
aristotelian wrote:
Sun Nov 18, 2018 2:41 am
Yes, they said free to transfer cash, $50 for the whole account, I assume.
That's odd. This page:
https://www.tdameritrade.com/pricing/br ... -fees.page
Says it's $75, regardless of positions, cash, etc.
I am assuming that this would be looked at as a "full transfer", right?


Transfers4
TD Ameritrade
Outbound full account transfer $75
Outbound partial account transfer FREE
Wires (outgoing) domestic or international $25
The PDF that is linked from Lively says $50

https://www.tdameritrade.com/retail-en_ ... PS1009.pdf
My signature has been deleted.

TetrisCollider
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by TetrisCollider » Sun Nov 18, 2018 5:12 pm

Spirit Rider wrote:
Sun Nov 18, 2018 4:32 pm
mptfan wrote:
Sun Nov 18, 2018 3:46 pm
TetrisCollider wrote:
Sun Nov 18, 2018 3:23 pm
And if I am interpreting this rule incorrectly, would love to hear a different opinion.
I think you are interpreting the rule incorrectly. If you incur medical expenses after opening an HSA account, then it does not matter when the account was closed, the expense was still incurred after opening the account and you can reimburse yourself for the expense from any HSA account, and I don't think it matters whether you reimburse yourself from that particular HSA account or another HSA account that was opened later, especially when the first HSA account was transferred to the second HSA account from which you were reimbursed. I could be wrong, but that is my interpretation.
@mptfan you are correct with limited caveats.

From IRS Notice 2008-59, Q&A-38. When an HSA is established, Q&A-40. Establishment date for rollovers and
Q&A-41. Establishment date for successive HSAs.

Q-38. When is an HSA established?
A-38. An HSA is an exempt trust established through a written governing instrument under state law. Section 223(d)(1). State trust law determines when an HSA is established. Most state trust laws require that for a trust to exist, an asset must be held in trust; thus, most state trust laws require that a trust must be funded to be established. Whether the account beneficiary’s signature is required to establish the trust also depends on state law.

Q-40. When is an HSA established if the funds in the HSA were rolled over or transferred from an Archer MSA or another HSA?
A-40. An HSA that is funded by amounts rolled over or transferred from an Archer MSA or another HSA is established as of the date the prior account was established.

Q-41. On what date is an HSA established if the account beneficiary had previously established an HSA?
A-41. If an account beneficiary establishes an HSA, and later establishes another HSA, any later HSA is deemed to be established when the first HSA was established if the account beneficiary has an HSA with a balance greater than zero at any time during the 18-month period ending on the date the later HSA is established.
@Spirit Rider

Thank you for this detail. Still a bit confusing, as Q/A-40 and Q/A-41 seem to be kind of contradicting each other if they are to be interpreted separately. In addition, when reading the actual IRS document, they seem to be almost always mentioning the ENTIRE AMOUNT when they provide a rollover example and do not mention a partial rollover (which can also be done). But from this IRS note, it is obvious that timing of various HSA account openings, closings and the amount of funds available in each does impact what and when one can do with each of the accounts. As always, IRS certainly does NOT make it easy for people to manage these...
For some reason, people that know nothing, seem to know everything...

danaht
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by danaht » Sun Nov 18, 2018 5:15 pm

southerndoc wrote:
Sun Nov 18, 2018 3:20 pm
Debit cards are available for those that don't want to use their credit cards: https://www.fidelity.com/static/moneymo ... ways.shtml

Unfortunately my open enrollment for 2019 has already closed. I had elected to put $290 every 2 weeks into my Health Equity HSA. I can't change it. I have $2k remaining for 2018 and will fund the Fidelity HSA that way. I will transfer/close my Health Equity account at the beginning of 2020 and elect not to have any funds withheld in 2020 since my PEO won't fund Fidelity's HSA (they have a contract with Health Equity).
You could just keep your Health Equity account open and:
1) Have your employer continue to run payroll through and contribute to the Health Equity account (note: this is beneficial because you don't pay Payroll taxes on this money when the HSA is funded through payroll. You may also be missing HSA bonuses from your employer if you close this account.)
2) Have Fidelity transfer the funds from Health Equity every quarter (there might not be any transfer fees if Fidelty initiates the transfer - you might have to experiment with this to see if that is the case)

Note: I am in your situation with my employer. My employer uses Optum HSA. I am not going to close this account - because I would miss the $650 that my employer gives me for choosing to have a high deductible health care plan. I also want my contributions to go through payroll so they are not subject to FICA taxes. I did some research - and I believe Optum might only charge the $20 partial transfer fee if Optum initiates the transfer. So, I'll initiate a one time transfer with Fidelity pulling from Optum- and see what happens. (hopefully no fees are charged - and I can plan to do this once every quarter). I only need to keep $500 in my Optum plan to avoid the monthly fees. $500 in idle cash is better than $5000 - which is what Optum requires for the fee-free investment option for my company.

OnLevel
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by OnLevel » Sun Nov 18, 2018 7:35 pm

I took the plunge and opened my Fidelity account today. My employer uses HSA bank as custodian. I am going to mail the pre-filled Fidelity form and transfer most of my current cash balance. If this works, I will liquidate my investments and transfer them to fidelity, and will plan to do this once a year.

To those who are transferring from HSA bank, are you doing the medallion signature guarantee?

Spirit Rider
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Spirit Rider » Sun Nov 18, 2018 8:12 pm

TetrisCollider wrote:
Sun Nov 18, 2018 5:12 pm
Thank you for this detail. Still a bit confusing, as Q/A-40 and Q/A-41 seem to be kind of contradicting each other if they are to be interpreted separately.
I think you are over thinking this.

Q&A 38 defines the establishment date, Q&40 allows subsequent HSAs to use the first establishment date and Q&41 limits the $0 balance gap that you can have.

It is all or nothing and has nothing to do with the value of any rollovers. The only thing that matters is the duration of any $0 balance in all HSA account. Just $1 in any HSA account within 18 months continues the original establishment date.

exigent
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by exigent » Sun Nov 18, 2018 11:36 pm

exigent wrote:
Fri Nov 16, 2018 2:24 pm
terran wrote:
Fri Nov 16, 2018 9:34 am
lisaneedsbraces wrote:
Fri Nov 16, 2018 9:21 am
I submitted my transfer form along with statements as a message to Fidelity yesterday, and today they responded that it was being processed. The form does not have to be mailed.
Just to clarify, you attached the form and the statement from your old provider to a secure message (under Customer Service > Contact Us > Email a secure message)?
Okay, I just tried the same thing. Hopefully it works, as it saves me a stamp and a walk to the mailbox... Will update when I know more.

Edit to add: Got the confirmation email saying they've received my message and it included the following caveat...

"Please note: We are unable to act on any money movement requests or trading requests to buy, sell, or exchange securities via email."

Hopefully this doesn't count as a "money movement request."

Just a quick update... I got a secure message from Fidelity yesterday saying that they had forwarded the transfer request to the appropriate department and that they’d update on progress in 2-4 days. So it sounds like online submission might have done the trick. Fingers crossed...

exigent
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by exigent » Mon Nov 19, 2018 12:12 am

OnLevel wrote:
Sun Nov 18, 2018 7:35 pm
I took the plunge and opened my Fidelity account today. My employer uses HSA bank as custodian. I am going to mail the pre-filled Fidelity form and transfer most of my current cash balance. If this works, I will liquidate my investments and transfer them to fidelity, and will plan to do this once a year.

To those who are transferring from HSA bank, are you doing the medallion signature guarantee?
I called to ask and was told that they don’t require it.

fennewaldaj
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by fennewaldaj » Mon Nov 19, 2018 1:58 am

It would be nice if my employer moved our HSA custodian to Fidelity from Optum. Fidelity is already the 403b/457/401a administrator so it would be much easier for me (and likely for employer too once it happened).

OnLevel
Posts: 47
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by OnLevel » Mon Nov 19, 2018 6:21 am

exigent wrote:
Mon Nov 19, 2018 12:12 am
OnLevel wrote:
Sun Nov 18, 2018 7:35 pm
I took the plunge and opened my Fidelity account today. My employer uses HSA bank as custodian. I am going to mail the pre-filled Fidelity form and transfer most of my current cash balance. If this works, I will liquidate my investments and transfer them to fidelity, and will plan to do this once a year.

To those who are transferring from HSA bank, are you doing the medallion signature guarantee?
I called to ask and was told that they don’t require it.
Awesome, thanks!

chazas
Posts: 60
Joined: Wed Nov 01, 2017 1:22 pm

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by chazas » Mon Nov 19, 2018 11:48 am

EDIT: Fidelity rep said to print the form outside the wizard and check the brokerage transfer option. We'll see.

***

I'm trying to transfer an HSA account currently at my BCBS provider, Acclaris, to a new individual Fidelity account. When I fill in the Acclaris information on the transfer screens, including my account number, Fidelity doesn' t give me a drop-down option for an in-kind transfer only a cash transfer. The preprinted form only has that box checked.

I could initiate a trustee-to-trustee transfer from Acclaris, but would prefer to do it via Fidelity. Has anyone else had this problem?
Last edited by chazas on Mon Nov 19, 2018 12:23 pm, edited 1 time in total.

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sperry8
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by sperry8 » Mon Nov 19, 2018 12:01 pm

tj wrote:
Sat Nov 17, 2018 9:00 pm
b0B wrote:
Sat Nov 17, 2018 8:45 pm
tj wrote:
Sat Nov 17, 2018 8:30 pm
honduranhurricane wrote:
Sat Nov 17, 2018 7:09 pm
whodidntante wrote:
Sat Nov 17, 2018 11:50 am

I don't know, but I doubt it. Fidelity's own peasant class index funds have extremely low ERs, sometimes lower than Vanguard institutional shares. So maybe it's not a big concern.
I just did this, had to sell all Vanguard funds at Health Equity and transfer cash. Annoying but, oh well.
Did you have to fill anything out at HealthEquity or was the signed Fidelity form sufficient?
I'll add to this question. Could you do it purely online from the Fidelity side?
No you can't do it purely online. Fidelity generates a PDF that you have to print out and sign, hence my question. :mrgreen:
I signed online - nothing described any requirement to mail anything in (yet).
BH contest results: 2019: #233 of 645 | 18: #150 of 493 | 17: #516 of 647 | 16: #121 of 610 | 15: #18 of 552 | 14: #225 of 503 | 13: #383 of 433 | 12: #366 of 410 | 11: #113 of 369 | 10: #53 of 282

Jazzysoon
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Jazzysoon » Mon Nov 19, 2018 3:00 pm

chazas wrote:
Mon Nov 19, 2018 11:48 am
EDIT: Fidelity rep said to print the form outside the wizard and check the brokerage transfer option. We'll see.

***

I'm trying to transfer an HSA account currently at my BCBS provider, Acclaris, to a new individual Fidelity account. When I fill in the Acclaris information on the transfer screens, including my account number, Fidelity doesn' t give me a drop-down option for an in-kind transfer only a cash transfer. The preprinted form only has that box checked.

I could initiate a trustee-to-trustee transfer from Acclaris, but would prefer to do it via Fidelity. Has anyone else had this problem?
I had the same issue with Optum hsa bank, and received same advice from Fidelity Cust service. Dropped off form at local branch this am, will see how it goes....

chazas
Posts: 60
Joined: Wed Nov 01, 2017 1:22 pm

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by chazas » Mon Nov 19, 2018 5:50 pm

Jazzysoon wrote:
Mon Nov 19, 2018 3:00 pm
chazas wrote:
Mon Nov 19, 2018 11:48 am
EDIT: Fidelity rep said to print the form outside the wizard and check the brokerage transfer option. We'll see.

***

I'm trying to transfer an HSA account currently at my BCBS provider, Acclaris, to a new individual Fidelity account. When I fill in the Acclaris information on the transfer screens, including my account number, Fidelity doesn' t give me a drop-down option for an in-kind transfer only a cash transfer. The preprinted form only has that box checked.

I could initiate a trustee-to-trustee transfer from Acclaris, but would prefer to do it via Fidelity. Has anyone else had this problem?
I had the same issue with Optum hsa bank, and received same advice from Fidelity Cust service. Dropped off form at local branch this am, will see how it goes....
I'm dropping mine off tomorrow. Fingers crossed.

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southerndoc
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by southerndoc » Tue Nov 20, 2018 12:21 am

Spoke with a representative from HealthEquity this evening. The guy said they do not charge for transfers out. He said they view it as equivalent to a distribution - it's the customers money, not their money.

I'm waiting to hear from my PEO to see if I can have funds deposited into Fidelity instead of HealthEquity. If not, then I'll transfer money from HE to Fidelity every 6 months or so.

csj403
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by csj403 » Tue Nov 20, 2018 4:33 am

I have existing HSA with Benefit Wallet. I’ve heard some pretty scary stories concerning closing out accounts there. Wondering what is the best procedure to do so. Has anybody successfully transferred and closed out account from Benefit Wallet to Fidelity?

cas
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by cas » Tue Nov 20, 2018 7:48 am

csj403 wrote:
Tue Nov 20, 2018 4:33 am
I have existing HSA with Benefit Wallet. I’ve heard some pretty scary stories concerning closing out accounts there. Wondering what is the best procedure to do so. Has anybody successfully transferred and closed out account from Benefit Wallet to Fidelity?
Me too, on the Benefit Wallet. (Except that I haven't heard any stories one way or the other about transferring out.)

If anyone is working on a Benefit Wallet to Fidelity transfer, please share your experiences.

SuzBanyan
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by SuzBanyan » Tue Nov 20, 2018 11:07 am

I opened an HSA with Fidelity on 11/15 and mailed a check for my current year “catch-up” contribution. I used the online .pdf form for depositing a check and checked the box for “current year contribution for ... HSA”. There is also an option to check a box for “60 day rollover” I will use in the future for the once every 12 months indirect rollover.
It was deposited today.

beebog
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by beebog » Tue Nov 20, 2018 12:00 pm

csj403 wrote:
Tue Nov 20, 2018 4:33 am
I have existing HSA with Benefit Wallet. I’ve heard some pretty scary stories concerning closing out accounts there. Wondering what is the best procedure to do so. Has anybody successfully transferred and closed out account from Benefit Wallet to Fidelity?
I also have an existing HSA with BenefitWallet and am curious about the scary stories. I have not contributed for 2018 yet, so I figured I would use Fidelity for that.

On the BenefitWallet side, so far I've just tried to move my stock and bond index funds into a money market with SaveDaily and then I was going to transfer it back to BenefitWallet and close the SaveDaily part of it. Once that is all squared away I was going to attempt to move it to Fidelity.

It is slow going though. My stock and bond sales still haven't posted from over the weekend.

I imagine I am going to have to get on the phone to actually close the accounts at both SaveDaily and BenefitWallet because I can't find anything online. I'm really not looking forward to it. :annoyed

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