wxturtle wrote: ↑Sun Mar 17, 2019 10:44 am
Looking for an ELI5 (ok, ELI25).
Have an HSA through HSABank. No longer employed at the company that used them so it's just my HSA with no contributions.
Currently, I have $5k at HSA Bank in cash and $25k at TDA (invested in no-load funds). Would like to move this over to Fidelity.
From those who have done this (HSABank -> Fidelity), what is the most painless process?
0.) I assume step 1 is to open an HSA via Fidelity. After this...
1.) Should I move all of my $$$ into either TDA or the HSABank cash account to get ready to move? Or can Fidelity just "call" HSA to handle the split $$?
2.) Should I liquidate all my positions while they are no-load at TDA?
3.) Do I need to leave some money in HSABank to cover fees/closeout costs?
4.) Is trustee-to-trustee transfer via Fidelity (after signing up for an account) the way to go?
Here's how I did it. I had HSA Bank + TDA through my employer and Cigna insurance (not sure if the last part matters). I had the HSA Bank HSA from a former employer, so there were no longer any payroll contributions going into it.
1. Open new HSA at Fidelity
2. In HSA Bank, I had all my assets in TDA in a couple of ETFs, I had $0 in the HSB Bank savings. I was reading that nearly everyone is saying you should transfer everything into TDA, that works better
3. In Fidelity HSA, initiate a trustee to trustee transfer. Choose my TDA account as the "from" account, not
HSA Bank. Transfer all assets "in kind" so you'll have the same positions before and after; note that only whole shares can transfer, any fractional shares will wind up in cash/money-market. I did this all online. I believe Fidelity required me to go into my HSA Bank (or TDA?) account and run a statement and download it as PDF, then upload that PDF into Fidelity, as proof that I was the account holder. That was a few months ago so I don't remember those exact details, but I did it all online - no snail mail, no fax, no notary seals, etc.
4. Wait it out. I did need to call Fidelity and HSA Bank and TDA one or two times each because of snags in the process, so pay attention to the "tracking" areas in Fidelity to monitor your status. I did my transfer very soon after Fidelity opened up this new individual HSA program, and I am guessing it's easier now because Fidelity has more experience with this routine. I didn't have to pay any closing fees at HSA Bank or TDA but that might have changed since then.