Questions re: moving HSA from HSABank/TDA to Fidelity

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wxturtle
Posts: 22
Joined: Tue Apr 18, 2017 10:01 am

Questions re: moving HSA from HSABank/TDA to Fidelity

Post by wxturtle » Thu Mar 14, 2019 9:33 am

I see Fidelity is (finally) offering an HSA with no fees. Hooray!

I left my employer a few years ago so I've had an HSABank account but have been keeping $5k in cash and investing the other ~$25k with TDA.Would be nice if I could do something with that $5k, though -- and I want to support brokerages who offer lower cost options...

What is the actual process for moving this money to Fidelity? I've searched a bit but most threads discuss the implications for moving and not the step-by-step process.

A.) I assume first step is to open an account at Fidelity?
B.) Assuming yes, do I just instruct Fidelity to move everything over from HSABank themselves (similar to moving an IRA from one bank to another)? Or do I withdraw the money myself from HSABank and then turn around and deposit in Fidelity? Are there tax implications of either strategy? Is there paperwork involved, even if none of this movement is related to medical expenses?
C.) If Fidelity will just move everything for me, do I have to specify that some money is in cash at HSABank and some invested at a linked TDA account? Should I liquidate all of my funds first since they are all TDA no-load index funds?

A little insight into how to do this A) as cheaply and B) as simply as possible would be much (much) appreciated! TIA.

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elcadarj
Posts: 58
Joined: Tue Aug 30, 2016 8:21 am

Re: Questions re: moving HSA from HSABank/TDA to Fidelity

Post by elcadarj » Thu Mar 14, 2019 9:44 am

Take a look at this thread for answers to your questions. I just successfully completed Optum --> Fidelity HSA but my experience may differ.

viewtopic.php?t=271203

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