HSABank changing terms about account minimums?

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Krischi
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HSABank changing terms about account minimums?

Post by Krischi »

I have an investment account at TD Ameritrade linked to my HSABank account via the GEHA HDHP insurance plan. Today, I got the below communication. This looks like a change of terms to me - I searched my archives and couldn't find any communications of this sort before. Up to now, I've transferred the total amount in the HSA to TD Ameritrade as soon as it has come in without any trouble. GEHA has paid the associated monthly account fees. But now it looks like HSABank wants its cut? Has anyone else seen this?
Dear XXX,

We are writing to remind you of the minimum cash account threshold requirement in your HSA Bank cash account.

On June 18, 2020, only HSA funds in excess of $1,000 in your HSA Bank cash account can be transferred to your investment account.

If you utilize Auto-Sweep and your minimum threshold is set below $1,000, you will need to adjust the amount to $1,000 or more. If no action is taken by June 18, the minimum threshold will default to $1,000.

If you have a scheduled Recurring Transfer, the funds will not transfer if the HSA Bank cash account balance would fall below the minimum threshold of $1,000.

If you have any questions about this communication, our U.S.-based Client Assistance Center has English-speaking and multilingual representatives available 24 hours a day, 7 days a week, at 800-357-6246.

Note: Brokerage accounts are not FDIC insured, not bank guaranteed, not a deposit account, and not guaranteed by any federal government agency. Brokerage accounts are not a deposit account, or an obligation of HSA Bank, and they may lose value.

Sincerely,

Member Services
HSA Bank
erictiger12
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Re: HSABank changing terms about account minimums?

Post by erictiger12 »

My megacorp uses HSA bank for our HSA and I got the same email this morning.
fedfire
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Re: HSABank changing terms about account minimums?

Post by fedfire »

I am also on the GEHA plan and got the same email this morning. Up until this point, I've always immediately transferred my funds over to TDA and have kept exactly $0 in my HSA Bank account with no fees. Not super excited about having to keep $1k in cash in there (cash account pays 0.05% under $5k).

But I'm not sure if it's worth the hassle of maintaining another HSA since GEHA still contributes to HSA Bank...
aristotelian
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Re: HSABank changing terms about account minimums?

Post by aristotelian »

Why do you say it is a change in terms? From what I understand, HSA Bank has had a threshold for the investment account. It is possible that your employer used to subsidize that cost and that is what changed.

I bypass my employer HSA and go straight to Fidelity with no fees and no minimum.
lstone19
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Re: HSABank changing terms about account minimums?

Post by lstone19 »

In the past, both my and my wife's employer have used HSABank and for both of us, there was a $1,000 minimum before investing. So if you haven't had this minimum, you're lucky but now you're just getting stuck with the same crappy terms the rest of us had. Think of the foregone earnings on that $1,000 as yet another fee you have to pay.
petulant
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Re: HSABank changing terms about account minimums?

Post by petulant »

My HSA with a different provider has a $2500 minimum. It id my understanding these minimums are common.
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anon_investor
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Re: HSABank changing terms about account minimums?

Post by anon_investor »

I have always had this same minimum for my PayFlex HSA. I live with since my company contributes some money to my HSA and to avoid FICAt tax on my contributions.
ChrisBenn
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Re: HSABank changing terms about account minimums?

Post by ChrisBenn »

I contacted GEHA, and they said they were not aware of this change, and it should not be the case; they are referring it to their HSA depertment for more investigation tomorrow (closed for the day).

I contacted HSABank, and they couched this as a new policy they are "just implementing" for everyone "to help" you insure you have cash for medical expenses. Thanks. I asked to opt out, and they said one couldn't. I asked if this applied to manual transfers as well, and they put me on hold to check - then confirmed it did. I asked about doing a roll-over every month, and they indicated roll-overs were only allowed every year, but you could do a HSA transfer with no fees monthly. I haven't validated this at all, but that seems like the only option (other than letting the 1k sit in the balance).

I'll probably walk through the transfer once for my next contribution after this goes into effect to see how automated/how much of a hassle it is. Unfortunate as I was totally fine with the Ameritrade self directed option prior to this. Looks like Fidelity it is. Have to figure out if I can ACAT into the fidelity account, or if I am going to have to liquidate/rollover.
lstone19
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Re: HSABank changing terms about account minimums?

Post by lstone19 »

ChrisBenn wrote: Tue Jun 02, 2020 6:24 pm I contacted HSABank, and they couched this as a new policy they are "just implementing" for everyone "to help" you insure you have cash for medical expenses.
Gotta live how a policy that makes them more money is “to help” you. Because without their “help”, we’re all too uneducated to know how to manage our money.
tj
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Re: HSABank changing terms about account minimums?

Post by tj »

I didn't notice receiving this email, I certainly don't keep that much in the bank account.
tbone555
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Re: HSABank changing terms about account minimums?

Post by tbone555 »

I direct my contributions to Fidelity HSA via payroll deductions. I let my employer contributions to HSABank build up for a while and then do a direct transfer to Fidelity.
turbo2112
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Re: HSABank changing terms about account minimums?

Post by turbo2112 »

I received the same email. I too have never kept a balance in the HSA account.
FreddyC
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Re: HSABank changing terms about account minimums?

Post by FreddyC »

I also have Geha HDHP (as of this year), and did not get the email from HSA bank - where I keep a minimal balance. I think this is a mistake- their terms with Geha are contractual and we would probably get notice from Geha in addition to HSA bank.
tj
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Re: HSABank changing terms about account minimums?

Post by tj »

tbone555 wrote: Tue Jun 02, 2020 6:50 pm I direct my contributions to Fidelity HSA via payroll deductions. I let my employer contributions to HSABank build up for a while and then do a direct transfer to Fidelity.
I keep $100 in HSA Bank, any overage gets automatically swept to the linked TD Ameritrade account. Then I just buy SVSPX in the TD Ameritrade account. There might be a way to automate the recurring mutual fund purchase in TDA, but it looks like I have not set that up.
tbone555
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Re: HSABank changing terms about account minimums?

Post by tbone555 »

tj wrote: Tue Jun 02, 2020 7:08 pm
tbone555 wrote: Tue Jun 02, 2020 6:50 pm I direct my contributions to Fidelity HSA via payroll deductions. I let my employer contributions to HSABank build up for a while and then do a direct transfer to Fidelity.
I keep $100 in HSA Bank, any overage gets automatically swept to the linked TD Ameritrade account. Then I just buy SVSPX in the TD Ameritrade account. There might be a way to automate the recurring mutual fund purchase in TDA, but it looks like I have not set that up.
I always thought there was a $1000 minimum. I'm not sure where I must have read that.
MrJedi
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Re: HSABank changing terms about account minimums?

Post by MrJedi »

My company-sponsored and direct payroll contribution HSA requires $1000 in cash before investment too.

Instead of the hassle option of periodically calling and transferring to another custodian with no minimum cash balance for investment, I choose to recognize the $1000 as part of my cash / emergency fund / fixed income. If I need access to that $1000, it likely means I lost my job, at that point I roll the assets at that time to a no cash minimum HSA and withdraw to hold no cash there.
ChrisBenn
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Re: HSABank changing terms about account minimums?

Post by ChrisBenn »

FreddyC wrote: Tue Jun 02, 2020 6:57 pm I also have Geha HDHP (as of this year), and did not get the email from HSA bank - where I keep a minimal balance. I think this is a mistake- their terms with Geha are contractual and we would probably get notice from Geha in addition to HSA bank.
Per HSABank it's not (a mistake), and applies to GEHA.
Per GEHA they have never heard about this new policy, and confirmed it should be a 0 minimum balance (for transfers, self directed, etc)
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Cheez-It Guy
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Re: HSABank changing terms about account minimums?

Post by Cheez-It Guy »

My employer also uses HSA Bank, and I received the same E-Mail as in the OP. Transferring to Fidelity while employed is not advisable in my case because the company provides $400 a year "seed money" as a direct contribution to your account if you jump through some (easy) hoops in their health and wellness program. Not taking advantage of this would be leaving money on the table.

However, I interpret the E-Mail a bit differently. You don't have to maintain a $1000 cash minimum with HSA Bank at all times. They are simply restricting your ability to move money to a linked investment account if your cash balance is below $1000. My cash balance is currently about $300, but I have a non-trivial amount in the linked TD Ameritrade account already. I don't anticipate any changes for me, because I front-load my HSA contribution in January, ideally maxing it out for the year in a single pay period (inclusive of company seed money). Then I manually move that to TDA, leaving just a few hundred in HSA Bank. This seems like it will still be possible because the balance in HSA Bank will exceed $1000 every year at the time I want to do the transfer to TDA. Anyone else seeing it this way?
lstone19
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Re: HSABank changing terms about account minimums?

Post by lstone19 »

Cheez-It Guy wrote: Tue Jun 02, 2020 7:59 pm However, I interpret the E-Mail a bit differently. You don't have to maintain a $1000 cash minimum with HSA Bank at all times. They are simply restricting your ability to move money to a linked investment account if your cash balance is below $1000. My cash balance is currently about $300, but I have a non-trivial amount in the linked TD Ameritrade account already. I don't anticipate any changes for me, because I front-load my HSA contribution in January, ideally maxing it out for the year in a single pay period (inclusive of company seed money). Then I manually move that to TDA, leaving just a few hundred in HSA Bank. This seems like it will still be possible because the balance in HSA Bank will exceed $1000 every year at the time I want to do the transfer to TDA. Anyone else seeing it this way?
Based on my experience with HSA Bank, you will not be able to make a transfer to the investment account that takes the cash balance below $1000. If your balance is $5,000, you can only move $4,000. The only way to get the cash balance below $1,000 is to take a distribution from the HSA and if you do, you can't move anything more to the investment account until the balance is back above $1,000.

Interesting how their reaction to Fidelity is to essentially increase fees rather than decreasing them. I suspect they figure not enough people are savvy enough to move money to Fidelity or even know they have a choice and will just use the employer provided HSA.
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Cheez-It Guy
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Re: HSABank changing terms about account minimums?

Post by Cheez-It Guy »

lstone19 wrote: Tue Jun 02, 2020 8:17 pm
Cheez-It Guy wrote: Tue Jun 02, 2020 7:59 pm However, I interpret the E-Mail a bit differently. You don't have to maintain a $1000 cash minimum with HSA Bank at all times. They are simply restricting your ability to move money to a linked investment account if your cash balance is below $1000. My cash balance is currently about $300, but I have a non-trivial amount in the linked TD Ameritrade account already. I don't anticipate any changes for me, because I front-load my HSA contribution in January, ideally maxing it out for the year in a single pay period (inclusive of company seed money). Then I manually move that to TDA, leaving just a few hundred in HSA Bank. This seems like it will still be possible because the balance in HSA Bank will exceed $1000 every year at the time I want to do the transfer to TDA. Anyone else seeing it this way?
Based on my experience with HSA Bank, you will not be able to make a transfer to the investment account that takes the cash balance below $1000. If your balance is $5,000, you can only move $4,000. The only way to get the cash balance below $1,000 is to take a distribution from the HSA and if you do, you can't move anything more to the investment account until the balance is back above $1,000.

Interesting how their reaction to Fidelity is to essentially increase fees rather than decreasing them. I suspect they figure not enough people are savvy enough to move money to Fidelity or even know they have a choice and will just use the employer provided HSA.
Thanks for clarifying. Thought I had it figured out, but I should read more carefully:

"If you have a scheduled Recurring Transfer, the funds will not transfer if the HSA Bank cash account balance would fall below the minimum threshold of $1,000."
tj
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Re: HSABank changing terms about account minimums?

Post by tj »

Cheez-It Guy wrote: Tue Jun 02, 2020 8:58 pm
lstone19 wrote: Tue Jun 02, 2020 8:17 pm
Cheez-It Guy wrote: Tue Jun 02, 2020 7:59 pm However, I interpret the E-Mail a bit differently. You don't have to maintain a $1000 cash minimum with HSA Bank at all times. They are simply restricting your ability to move money to a linked investment account if your cash balance is below $1000. My cash balance is currently about $300, but I have a non-trivial amount in the linked TD Ameritrade account already. I don't anticipate any changes for me, because I front-load my HSA contribution in January, ideally maxing it out for the year in a single pay period (inclusive of company seed money). Then I manually move that to TDA, leaving just a few hundred in HSA Bank. This seems like it will still be possible because the balance in HSA Bank will exceed $1000 every year at the time I want to do the transfer to TDA. Anyone else seeing it this way?
Based on my experience with HSA Bank, you will not be able to make a transfer to the investment account that takes the cash balance below $1000. If your balance is $5,000, you can only move $4,000. The only way to get the cash balance below $1,000 is to take a distribution from the HSA and if you do, you can't move anything more to the investment account until the balance is back above $1,000.

Interesting how their reaction to Fidelity is to essentially increase fees rather than decreasing them. I suspect they figure not enough people are savvy enough to move money to Fidelity or even know they have a choice and will just use the employer provided HSA.
Thanks for clarifying. Thought I had it figured out, but I should read more carefully:

"If you have a scheduled Recurring Transfer, the funds will not transfer if the HSA Bank cash account balance would fall below the minimum threshold of $1,000."
I keep $100 in the HSA Bank cash account and recurring transfers take place every month.
aszend
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Re: HSABank changing terms about account minimums?

Post by aszend »

Does anyone know if the $2.50/month HSA service fee still require an average daily cash balance of $3,000, or has that been lowered?
lstone19
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Re: HSABank changing terms about account minimums?

Post by lstone19 »

aszend wrote: Tue Jun 02, 2020 10:37 pm Does anyone know if the $2.50/month HSA service fee still require an average daily cash balance of $3,000, or has that been lowered?
Fees like that are part of the agreement between HSA Bank and your employer. Some agreements have fees paid out of the account; some have fees paid by the employer. There is no way any of us can answer as that is specific to your employer.
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Cheez-It Guy
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Re: HSABank changing terms about account minimums?

Post by Cheez-It Guy »

Correct. My employer pays that fee. When I cease employment, I will roll over from HSA Bank to Fidelity, unless Vanguard develops an HSA offering by that time. Not counting on it, though.
Paul78
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Re: HSABank changing terms about account minimums?

Post by Paul78 »

aristotelian wrote: Tue Jun 02, 2020 2:16 pm Why do you say it is a change in terms? From what I understand, HSA Bank has had a threshold for the investment account. It is possible that your employer used to subsidize that cost and that is what changed.

I bypass my employer HSA and go straight to Fidelity with no fees and no minimum.
They had a threshold to waive fees. But as long as you are still actively insured (at least in the case of GEHA) that fee is waived without having a minium balance.

This new $1,000 rule even applies to people with active GEHA insurance (and I assume any other insurance).
tj
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Re: HSABank changing terms about account minimums?

Post by tj »

Paul78 wrote: Wed Jun 03, 2020 8:15 am
aristotelian wrote: Tue Jun 02, 2020 2:16 pm Why do you say it is a change in terms? From what I understand, HSA Bank has had a threshold for the investment account. It is possible that your employer used to subsidize that cost and that is what changed.

I bypass my employer HSA and go straight to Fidelity with no fees and no minimum.
They had a threshold to waive fees. But as long as you are still actively insured (at least in the case of GEHA) that fee is waived without having a minium balance.

This new $1,000 rule even applies to people with active GEHA insurance (and I assume any other insurance).
We'll have to see. I've received no such notification. It could have been sent to some geha insureds by mistake.
keystone
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Re: HSABank changing terms about account minimums?

Post by keystone »

My family is also insured by GEHA HDHP and I received the same email yesterday from HSA Bank regarding the need to carry a minimum $1,000 cash balance before any transfers can be made. I was hoping this did not apply to us, but it looks like it will.

On the bright side, we will be earning 0.05% interest on our cash balance. :?
Paul78
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Re: HSABank changing terms about account minimums?

Post by Paul78 »

ChrisBenn wrote: Tue Jun 02, 2020 6:24 pm I contacted GEHA, and they said they were not aware of this change, and it should not be the case; they are referring it to their HSA depertment for more investigation tomorrow (closed for the day).
From my experience GEHA reps know little about HSA accounts. I have had far more success talking straight to HSAbank (because they also know the contract they have with various insurance companies).

Also one point I would make is the contract probably waives "fees" not minimum balances. In the past HSAbank had a fee unless you had a certain balance (ie not technically a minimum balance requirement). This new rule is a minimum balance, not a fee. So they can probably get away with it as they are not charging GEHA (or other insurance companies) members any money.
tj
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Re: HSABank changing terms about account minimums?

Post by tj »

Paul78 wrote: Wed Jun 03, 2020 11:41 am
ChrisBenn wrote: Tue Jun 02, 2020 6:24 pm I contacted GEHA, and they said they were not aware of this change, and it should not be the case; they are referring it to their HSA depertment for more investigation tomorrow (closed for the day).
From my experience GEHA reps know little about HSA accounts. I have had far more success talking straight to HSAbank (because they also know the contract they have with various insurance companies).

Also one point I would make is the contract probably waives "fees" not minimum balances. In the past HSAbank had a fee unless you had a certain balance (ie not technically a minimum balance requirement). This new rule is a minimum balance, not a fee. So they can probably get away with it as they are not charging GEHA (or other insurance companies) members any money.
I don't see how they can really implement this change unless they notify all accountholders.
tj
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Re: HSABank changing terms about account minimums?

Post by tj »

I recieved a snail mail yesterday, the letter was dated May 29th. This would indeed be a frustrating change.
j0nnyg1984
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Re: HSABank changing terms about account minimums?

Post by j0nnyg1984 »

I have HSA bank through my employer and a TD Ameritrade account. Our HSA Bank minimum has always been 1000$. Everything above that (my weekly contributions) are automatically swept into my investment account.
ChrisBenn
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Re: HSABank changing terms about account minimums?

Post by ChrisBenn »

j0nnyg1984 wrote: Sat Jun 13, 2020 10:18 am I have HSA bank through my employer and a TD Ameritrade account. Our HSA Bank minimum has always been 1000$. Everything above that (my weekly contributions) are automatically swept into my investment account.
Different plan groups have different (negotiated) minimums/fees. The GEHA one has always had a 0 minimum balance requirements to transfer. For others it's entirely dependent on what your provider has contracted for under their group plan.

There is also HSABank retail, which is whats published on their website. This (with fees, minimums, etc) is rendered obsolete by fidelity's retail offering. I would assume the only people using HSABank in the future will be people locked into it for HDHP contributions.
tj
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Re: HSABank changing terms about account minimums?

Post by tj »

ChrisBenn wrote: Sat Jun 13, 2020 10:55 am
j0nnyg1984 wrote: Sat Jun 13, 2020 10:18 am I have HSA bank through my employer and a TD Ameritrade account. Our HSA Bank minimum has always been 1000$. Everything above that (my weekly contributions) are automatically swept into my investment account.
Different plan groups have different (negotiated) minimums/fees. The GEHA one has always had a 0 minimum balance requirements to transfer. For others it's entirely dependent on what your provider has contracted for under their group plan.

There is also HSABank retail, which is whats published on their website. This (with fees, minimums, etc) is rendered obsolete by fidelity's retail offering. I would assume the only people using HSABank in the future will be people locked into it for HDHP contributions.
That's the only reason I've ever used HSA Bank. So is the new strategy to just eat the low interest cash for a year and do an annual transfer from HSA Bank to Fidelity?
ChrisBenn
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Re: HSABank changing terms about account minimums?

Post by ChrisBenn »

tj wrote: Sat Jun 13, 2020 10:57 am
ChrisBenn wrote: Sat Jun 13, 2020 10:55 am
j0nnyg1984 wrote: Sat Jun 13, 2020 10:18 am I have HSA bank through my employer and a TD Ameritrade account. Our HSA Bank minimum has always been 1000$. Everything above that (my weekly contributions) are automatically swept into my investment account.
Different plan groups have different (negotiated) minimums/fees. The GEHA one has always had a 0 minimum balance requirements to transfer. For others it's entirely dependent on what your provider has contracted for under their group plan.

There is also HSABank retail, which is whats published on their website. This (with fees, minimums, etc) is rendered obsolete by fidelity's retail offering. I would assume the only people using HSABank in the future will be people locked into it for HDHP contributions.
That's the only reason I've ever used HSA Bank. So is the new strategy to just eat the low interest cash for a year and do an annual transfer from HSA Bank to Fidelity?
I think you could do a monthly trustee to trustee transfer. HSABank, on the phone, indicated there were no fees for his, and it was possible (though depended on the final custodian to start the transfer). Probably not worth the effort for, but I'm tempted out of pure spite :).

I know fidelity supports auto-transfers for mega-backdoor-roth contributions in some cases; if this change turns out to be true (waiting on GEHA HSA dept to finish researching it) I might see if they can set something up automatically. Barring that I'll do the transfer (custodian to custodian; distinct from the once a year rollover) to see how much work it is.
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kramer
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Re: HSABank changing terms about account minimums?

Post by kramer »

I saw this email a couple of weeks back, also. I am no longer adding to my HSA (not eligible). I only keep about $100 in my HSA cash account and the rest of my funds are in the linked TD Ameritrade Brokerage Account. So since I only move funds from my TD Ameritrade Account to my HSA cash account about once a year, just to keep enough in the HSA Cash account to pay fees, I don't think this affects me? In other words, I never have a need to transfer money from HSA cash account to my linked brokerage account.
tj
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Re: HSABank changing terms about account minimums?

Post by tj »

ChrisBenn wrote: Sat Jun 13, 2020 11:10 am
tj wrote: Sat Jun 13, 2020 10:57 am
ChrisBenn wrote: Sat Jun 13, 2020 10:55 am
j0nnyg1984 wrote: Sat Jun 13, 2020 10:18 am I have HSA bank through my employer and a TD Ameritrade account. Our HSA Bank minimum has always been 1000$. Everything above that (my weekly contributions) are automatically swept into my investment account.
Different plan groups have different (negotiated) minimums/fees. The GEHA one has always had a 0 minimum balance requirements to transfer. For others it's entirely dependent on what your provider has contracted for under their group plan.

There is also HSABank retail, which is whats published on their website. This (with fees, minimums, etc) is rendered obsolete by fidelity's retail offering. I would assume the only people using HSABank in the future will be people locked into it for HDHP contributions.
That's the only reason I've ever used HSA Bank. So is the new strategy to just eat the low interest cash for a year and do an annual transfer from HSA Bank to Fidelity?
I think you could do a monthly trustee to trustee transfer. HSABank, on the phone, indicated there were no fees for his, and it was possible (though depended on the final custodian to start the transfer). Probably not worth the effort for, but I'm tempted out of pure spite :).

I know fidelity supports auto-transfers for mega-backdoor-roth contributions in some cases; if this change turns out to be true (waiting on GEHA HSA dept to finish researching it) I might see if they can set something up automatically. Barring that I'll do the transfer (custodian to custodian; distinct from the once a year rollover) to see how much work it is.

Let us know what you hear from GEHA. I have submitted an inquiry via the website as well.
j0nnyg1984
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Re: HSABank changing terms about account minimums?

Post by j0nnyg1984 »

ChrisBenn wrote: Sat Jun 13, 2020 10:55 am
j0nnyg1984 wrote: Sat Jun 13, 2020 10:18 am I have HSA bank through my employer and a TD Ameritrade account. Our HSA Bank minimum has always been 1000$. Everything above that (my weekly contributions) are automatically swept into my investment account.
Different plan groups have different (negotiated) minimums/fees. The GEHA one has always had a 0 minimum balance requirements to transfer. For others it's entirely dependent on what your provider has contracted for under their group plan.

There is also HSABank retail, which is whats published on their website. This (with fees, minimums, etc) is rendered obsolete by fidelity's retail offering. I would assume the only people using HSABank in the future will be people locked into it for HDHP contributions.
Umm, okay?
careerdata
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Re: HSABank changing terms about account minimums?

Post by careerdata »

I have seen some references in the responses that Fidelity is now offering an HSA product. Is this relatively new as my Fidelity resource a year ago said they had no option for me to roll over my $6,700 currently with HSA Bank? This money is from a prior employer HDHP plan and I had it sitting in cash with HSA Bank but was in the process of setting up the Devenir account for investing. A large portion of my retirement assets from several prior employer plans are with Fidelity and Vanguard is the administrator for the plan with my current employer. If Fidelity has an option to accept the funds from HSA Bank I would love to move it there to further reduce the number of accounts I have.

Has anyone in a similar situation moved their HSA funds from HSA Bank to Fidelity? If so, was it a straightforward process? What is better with Fidelity compared to HSA Bank?

Thanks in advance for sharing your experiences and insights!

Regards,

Joe
lstone19
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Re: HSABank changing terms about account minimums?

Post by lstone19 »

careerdata wrote: Sat Jun 13, 2020 5:21 pm I have seen some references in the responses that Fidelity is now offering an HSA product. Is this relatively new as my Fidelity resource a year ago said they had no option for me to roll over my $6,700 currently with HSA Bank? This money is from a prior employer HDHP plan and I had it sitting in cash with HSA Bank but was in the process of setting up the Devenir account for investing. A large portion of my retirement assets from several prior employer plans are with Fidelity and Vanguard is the administrator for the plan with my current employer. If Fidelity has an option to accept the funds from HSA Bank I would love to move it there to further reduce the number of accounts I have.

Has anyone in a similar situation moved their HSA funds from HSA Bank to Fidelity? If so, was it a straightforward process? What is better with Fidelity compared to HSA Bank?
Fidelity has offered retail HSAs since sometime in 2018. If your Fidelity resource told you what you claim in 2019, he or she is woefully ignorant of Fidelity's offerings.

I moved my money from HSABank in Jan 2019. I completed the custodian-to-custodian paperwork, sent it to Fidelity, and they did the rest. I believe it took about a month but it was submitted in mid-December just before the holidays.

As for what is better, no fees beyond the normal fees you'd pay with any brokerage account and no minimum in cash.
careerdata
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Re: HSABank changing terms about account minimums?

Post by careerdata »

lstone19 wrote: Sat Jun 13, 2020 5:37 pm
careerdata wrote: Sat Jun 13, 2020 5:21 pm I have seen some references in the responses that Fidelity is now offering an HSA product. Is this relatively new as my Fidelity resource a year ago said they had no option for me to roll over my $6,700 currently with HSA Bank? This money is from a prior employer HDHP plan and I had it sitting in cash with HSA Bank but was in the process of setting up the Devenir account for investing. A large portion of my retirement assets from several prior employer plans are with Fidelity and Vanguard is the administrator for the plan with my current employer. If Fidelity has an option to accept the funds from HSA Bank I would love to move it there to further reduce the number of accounts I have.

Has anyone in a similar situation moved their HSA funds from HSA Bank to Fidelity? If so, was it a straightforward process? What is better with Fidelity compared to HSA Bank?
Fidelity has offered retail HSAs since sometime in 2018. If your Fidelity resource told you what you claim in 2019, he or she is woefully ignorant of Fidelity's offerings.

I moved my money from HSABank in Jan 2019. I completed the custodian-to-custodian paperwork, sent it to Fidelity, and they did the rest. I believe it took about a month but it was submitted in mid-December just before the holidays.

As for what is better, no fees beyond the normal fees you'd pay with any brokerage account and no minimum in cash.
Many thanks for sharing your personal experience! It sounds just like what I was hoping Fidelity would offer! One less vendor to work with and no minimums for cash.

Regards,

Joe
tbone555
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Re: HSABank changing terms about account minimums?

Post by tbone555 »

I've done transfers from HSAbank to Fidelity all electronically. Just type a few details on the Fidelity app and the transfer completed in about 2 weeks. The app even had updates of each stage of the transfer (e.g. transfer request sent to HSAbank).
mpsz
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Re: HSABank changing terms about account minimums?

Post by mpsz »

HSA Bank is owned by Webster Bank, they've got a pretty large presence in southern New England. I wonder if this is a sign their parent is under financial stress due to the current events.

I was a former HSA Bank user and I had a heck of a time getting my money out for a rollover. Had to file a CFPB complaint after months of inaction by HSA Bank. Fidelity is a fantastic choice for anyone looking to leave.
motorcyclesarecool
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Re: HSABank changing terms about account minimums?

Post by motorcyclesarecool »

kramer wrote: Sat Jun 13, 2020 11:14 am I saw this email a couple of weeks back, also. I am no longer adding to my HSA (not eligible). I only keep about $100 in my HSA cash account and the rest of my funds are in the linked TD Ameritrade Brokerage Account. So since I only move funds from my TD Ameritrade Account to my HSA cash account about once a year, just to keep enough in the HSA Cash account to pay fees, I don't think this affects me? In other words, I never have a need to transfer money from HSA cash account to my linked brokerage account.
You appear to be a prime candidate to transfer your HSA elsewhere. Have you considered it?
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.
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kramer
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Re: HSABank changing terms about account minimums?

Post by kramer »

motorcyclesarecool wrote: Sun Jun 14, 2020 7:06 am
kramer wrote: Sat Jun 13, 2020 11:14 am I saw this email a couple of weeks back, also. I am no longer adding to my HSA (not eligible). I only keep about $100 in my HSA cash account and the rest of my funds are in the linked TD Ameritrade Brokerage Account. So since I only move funds from my TD Ameritrade Account to my HSA cash account about once a year, just to keep enough in the HSA Cash account to pay fees, I don't think this affects me? In other words, I never have a need to transfer money from HSA cash account to my linked brokerage account.
You appear to be a prime candidate to transfer your HSA elsewhere. Have you considered it?
I have not considered it recently, but thanks for the suggestion. Since I am abroad, transferring and starting new accounts is not always so simple. For that reason only, I may just leave it be. If the account exists for 20 more years, at current fee rates that would cost me $66 dollars per year times 20, or about $1320. I think TD Ameritrade brokerage transactions are free. But $1320 in maintenance fees is definitely not nothing. I think the account value is around $30K. That would put the annual additional expense ratio at about 22 basis points, again not chump change.
LuigiLikesPizza
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Re: HSABank changing terms about account minimums?

Post by LuigiLikesPizza »

This is disappointing. I've always moved my money from HSABank to Ameritrade ASAP, regardless of balance.

I am a GEHA HDHP account holder as well.

Are there other options to HSABank? (I ask not just because of this, but because I've received lousy service from them in the past).
ChrisBenn
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Re: HSABank changing terms about account minimums?

Post by ChrisBenn »

Got a call back from GEHA this morning, and they confirmed this applies to GEHA group members as well.
tj
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Re: HSABank changing terms about account minimums?

Post by tj »

ChrisBenn wrote: Mon Jun 15, 2020 12:34 pm Got a call back from GEHA this morning, and they confirmed this applies to GEHA group members as well.
That would mean that the automated transfers from HSA to TDA will halt until the HSABank cash account builds up to the minimum?
RJC
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Re: HSABank changing terms about account minimums?

Post by RJC »

Got this letter in the mail as well. I am assuming you have to accumulate at least $1,000 before any sweeps can be done?
gtt561
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Re: HSABank changing terms about account minimums?

Post by gtt561 »

I have my insurance with Cigna, that utilizes HSA Bank, for all of our HSA health insurance claims. I, too, received this letter in regards to maintaining a $1,000 cash account minimum, in order to transfer to my investment account. I have been a customer for over 10 years and my minimum was only $100.

Just called them and there seems no way around this. :evil:

They said I could email: askus@hsabank.com to lodge my complaint. Which I will be doing, along with contacting my Human Resource Dept. to see if we can change banks.

I liked what a previous poster had said about using the $1000 as an extra emergency fund, which I will also implement.
Last edited by gtt561 on Tue Jun 16, 2020 11:01 am, edited 1 time in total.
"Anything less than a 10-year horizon is just speculation." John Bogle
gtt561
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Re: HSABank changing terms about account minimums?

Post by gtt561 »

RJC wrote: Tue Jun 16, 2020 7:51 am Got this letter in the mail as well. I am assuming you have to accumulate at least $1,000 before any sweeps can be done?
That's what they told me when I just called.
"Anything less than a 10-year horizon is just speculation." John Bogle
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