Best HSA Provider for Rollover

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
maninthebox2784
Posts: 27
Joined: Sun May 09, 2010 2:53 pm

Best HSA Provider for Rollover

Post by maninthebox2784 »

Hi all,

I switched from an HSA to a PPO plan at work recently, and now I have an orphan HSA account with > $30K. It currently resides with HSA Bank, and most of the money is directed to TD Ameritrade via HSA Bank for my investing.

I was happy with this arrangement, but now that I'm no longer contributing to the HSA, HSA Bank is trying to rake me over the coals with service fees which are outrageous.

Do my fellow bogleheads have any recommendations on where I can roll this balance to while still enabling me to self-direct my investments?

Thanks!
life in slices
Posts: 123
Joined: Mon Apr 15, 2019 6:00 pm

Re: Best HSA Provider for Rollover

Post by life in slices »

I have my main HSA at Fidelity that I roll over into a couple of times a year from HealthEquity
No issues, easy to initiate the transfer from Fidelity's side and have access to all of Fidelity's funds

Think you might have to be in cash to transfer, but not sure
User avatar
David Jay
Posts: 9409
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Best HSA Provider for Rollover

Post by David Jay »

I don’t know how you would personally quantify “best”, but I chose Fidelity: No fees, access to huge array of funds, already had another Fidelity account so it did not add complexity to my financial picture.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius
User avatar
FIREchief
Posts: 5331
Joined: Fri Aug 19, 2016 6:40 pm

Re: Best HSA Provider for Rollover

Post by FIREchief »

Fidelity.
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.
regularguy455
Posts: 229
Joined: Tue Jul 18, 2017 2:08 pm

Re: Best HSA Provider for Rollover

Post by regularguy455 »

FIREchief wrote: Sat Aug 15, 2020 9:53 am Fidelity.
+1

On a side note, why does any business choose to use HSA Bank? They really have a predatory fee structure. Fidelity is better is every way.
TIAX
Posts: 1362
Joined: Sat Jan 11, 2014 12:19 pm

Re: Best HSA Provider for Rollover

Post by TIAX »

Your two good choices are lively and fidelity. I doubt Lively will survive now that Fidelity is in the game. No reason not go with Fidelity (especially if you already have an account with them).
TIAX
Posts: 1362
Joined: Sat Jan 11, 2014 12:19 pm

Re: Best HSA Provider for Rollover

Post by TIAX »

regularguy455 wrote: Sat Aug 15, 2020 10:01 am
FIREchief wrote: Sat Aug 15, 2020 9:53 am Fidelity.
+1

On a side note, why does any business choose to use HSA Bank? They really have a predatory fee structure. Fidelity is better is every way.
Because the employees are the ones paying the fees?
HenryPorter
Posts: 246
Joined: Sat Dec 05, 2009 2:09 am

Re: Best HSA Provider for Rollover

Post by HenryPorter »

Fidelity
User avatar
anon_investor
Posts: 3544
Joined: Mon Jun 03, 2019 1:43 pm

Re: Best HSA Provider for Rollover

Post by anon_investor »

FIREchief wrote: Sat Aug 15, 2020 9:53 am Fidelity.
+1. No brainer.
solargod007
Posts: 30
Joined: Sat Jun 20, 2020 2:52 pm

Re: Best HSA Provider for Rollover

Post by solargod007 »

maninthebox2784 wrote: Sat Aug 15, 2020 9:43 am Hi all,

I switched from an HSA to a PPO plan at work recently, and now I have an orphan HSA account with > $30K. It currently resides with HSA Bank, and most of the money is directed to TD Ameritrade via HSA Bank for my investing.

I was happy with this arrangement, but now that I'm no longer contributing to the HSA, HSA Bank is trying to rake me over the coals with service fees which are outrageous.

Do my fellow bogleheads have any recommendations on where I can roll this balance to while still enabling me to self-direct my investments?

Thanks!
Fidelity.
Recently opened a Fidelity HSA and initiated a transfer through Fidelity to move money from Health equity (current employer's choice). Health equity charges .033% investment fee (monthly) on top of the fees charged by fund. I had to liquidate the investments in Health equity and transfer was as cash. Planning to do the transfer quarterly/semi-annually (there are no fees for the transfers at both the end) going forward.
User avatar
FIREchief
Posts: 5331
Joined: Fri Aug 19, 2016 6:40 pm

Re: Best HSA Provider for Rollover

Post by FIREchief »

When there is this much agreement on an internet forum, you know you're getting the right answer! 8-)

Now, about US versus international..... :twisted:
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.
Topic Author
maninthebox2784
Posts: 27
Joined: Sun May 09, 2010 2:53 pm

Re: Best HSA Provider for Rollover

Post by maninthebox2784 »

Thanks guys! Fidelity it is!
User avatar
JDCarpenter
Posts: 1467
Joined: Tue Sep 09, 2014 2:42 pm

Re: Best HSA Provider for Rollover

Post by JDCarpenter »

I'll pile on.

For years, we had DW's HSA at HSABank. Once I became aware of Fidelity entering the field with a very attractive product, we moved the account--even though we did not have a prior fidelity relationship. Been very happy there.
Edit Signature
vtjon02
Posts: 97
Joined: Tue May 21, 2019 6:08 pm

Re: Best HSA Provider for Rollover

Post by vtjon02 »

I am an active participant in a new HSA through my work at Via Benefits. There is a $2 fee per month to be able to invest, and can only invest after keeping $1,000 in cash. I max this out but still a small balance as only recently converted to a HDHP. I intend to not spend the funds until retirement. The investment options are great and low cost.

Can I move this to Fidelity, and does my plan have to allow a rollover since I still actively contribute to it? If it matters, my employer makes a $1,000 contribution after completing certain wellness activities but I had earned and received the full contribution by March.
User avatar
anon_investor
Posts: 3544
Joined: Mon Jun 03, 2019 1:43 pm

Re: Best HSA Provider for Rollover

Post by anon_investor »

vtjon02 wrote: Sat Aug 15, 2020 1:13 pm I am an active participant in a new HSA through my work at Via Benefits. There is a $2 fee per month to be able to invest, and can only invest after keeping $1,000 in cash. I max this out but still a small balance as only recently converted to a HDHP. I intend to not spend the funds until retirement. The investment options are great and low cost.

Can I move this to Fidelity, and does my plan have to allow a rollover since I still actively contribute to it? If it matters, my employer makes a $1,000 contribution after completing certain wellness activities but I had earned and received the full contribution by March.
Likely yes, since you legally have more than 1 HSA account, you just cannot contribute more than your annual maximum ($3,550 individual / $7,100 family) accross all accounts. You would want to keep at least a little money in your existing HSA so it is not closed, although your existing HSA may charge a fee to transfer money. You should check out if there is a transfer fee, my PayFlex HSA has a $25 per trustee to trustee transfer fee. So for example if you had a $25 transfer fee, the benefit for transfering vs. paying a $2/mo fee is basically a wash.
xerxes101
Posts: 363
Joined: Sat Oct 14, 2017 11:25 am

Re: Best HSA Provider for Rollover

Post by xerxes101 »

solargod007 wrote: Sat Aug 15, 2020 11:09 am Recently opened a Fidelity HSA and initiated a transfer through Fidelity to move money from Health equity (current employer's choice). Health equity charges .033% investment fee (monthly) on top of the fees charged by fund. I had to liquidate the investments in Health equity and transfer was as cash. Planning to do the transfer quarterly/semi-annually (there are no fees for the transfers at both the end) going forward.
My employer-sponsored HSA is with Optum. Optum does the exact same thing as you describe above with Health Equity; they tack on a hefty monthly investment fee on top of the fees charged by the fund. I recently transferred everything I had in the account as cash to a Fidelity HSA account and I have been very happy with the decision, but I thought you can only do this cash transfer once a year. Can you really do this quarterly or semi-annually?

Edited to add: by the way I did not pay any fees o do this since the funds went directly to my checking account, and the Fidelity representative gave me a special form to fill out to indicate the nature of the HSA transfer.
User avatar
anon_investor
Posts: 3544
Joined: Mon Jun 03, 2019 1:43 pm

Re: Best HSA Provider for Rollover

Post by anon_investor »

xerxes101 wrote: Sun Aug 16, 2020 12:48 pm
solargod007 wrote: Sat Aug 15, 2020 11:09 am Recently opened a Fidelity HSA and initiated a transfer through Fidelity to move money from Health equity (current employer's choice). Health equity charges .033% investment fee (monthly) on top of the fees charged by fund. I had to liquidate the investments in Health equity and transfer was as cash. Planning to do the transfer quarterly/semi-annually (there are no fees for the transfers at both the end) going forward.
My employer-sponsored HSA is with Optum. Optum does the exact same thing as you describe above with Health Equity; they tack on a hefty monthly investment fee on top of the fees charged by the fund. I recently transferred everything I had in the account as cash to a Fidelity HSA account and I have been very happy with the decision, but I thought you can only do this cash transfer once a year. Can you really do this quarterly or semi-annually?

Edited to add: by the way I did not pay any fees o do this since the funds went directly to my checking account, and the Fidelity representative gave me a special form to fill out to indicate the nature of the HSA transfer.
There is a limit on indirect transfers, but not direct trustee to trustee transfers.
xerxes101
Posts: 363
Joined: Sat Oct 14, 2017 11:25 am

Re: Best HSA Provider for Rollover

Post by xerxes101 »

anon_investor wrote: Sun Aug 16, 2020 12:59 pm There is a limit on indirect transfers, but not direct trustee to trustee transfers.
Thanks for answering my question. Just to be sure I am clear on this, cashing the funds into my checking account would be considered indirect, but if Optum gets involved and transfers it to Fidelity then that would be direct trustee to trustee, correct?
User avatar
anon_investor
Posts: 3544
Joined: Mon Jun 03, 2019 1:43 pm

Re: Best HSA Provider for Rollover

Post by anon_investor »

xerxes101 wrote: Sun Aug 16, 2020 1:04 pm
anon_investor wrote: Sun Aug 16, 2020 12:59 pm There is a limit on indirect transfers, but not direct trustee to trustee transfers.
Thanks for answering my question. Just to be sure I am clear on this, cashing the funds into my checking account would be considered indirect, but if Optum gets involved and transfers it to Fidelity then that would be direct trustee to trustee, correct?
Yes. But Optum probably charges you a fee to do so. I have a PayFlex HSA and they charge $25 for a trustee to trustee transfer. Some have said in other threads that when Fidelity initiates the transfer they may escape the fee, but YMMV.
livesoft
Posts: 73361
Joined: Thu Mar 01, 2007 8:00 pm

Re: Best HSA Provider for Rollover

Post by livesoft »

HSA Savings Bank took so long to transfer my HSA from them to Fidelity that I missed almost all the March 2020 drop after selling close to the February 2020 highs. :twisted:
Wiki This signature message sponsored by sscritic: Learn to fish.
User avatar
anon_investor
Posts: 3544
Joined: Mon Jun 03, 2019 1:43 pm

Re: Best HSA Provider for Rollover

Post by anon_investor »

HSA "rollover" vs trustee to trustee:

https://apps.irs.gov/app/vita/content/3 ... orm%208889.
arf30
Posts: 738
Joined: Sat Dec 28, 2013 11:55 am

Re: Best HSA Provider for Rollover

Post by arf30 »

Mine's at Fidelity as well, I'm guessing they're going to eat up a lot of the smaller competition. No fees and a ton of investment options.
stoptothink
Posts: 8356
Joined: Fri Dec 31, 2010 9:53 am

Re: Best HSA Provider for Rollover

Post by stoptothink »

livesoft wrote: Sun Aug 16, 2020 1:09 pm HSA Savings Bank took so long to transfer my HSA from them to Fidelity that I missed almost all the March 2020 drop after selling close to the February 2020 highs. :twisted:
My transfer from healthequity took a similar amount of time; super annoying. My wife's (active) HSA is still with healthequity, but I should start the transfer.
User avatar
anon_investor
Posts: 3544
Joined: Mon Jun 03, 2019 1:43 pm

Re: Best HSA Provider for Rollover

Post by anon_investor »

livesoft wrote: Sun Aug 16, 2020 1:09 pm HSA Savings Bank took so long to transfer my HSA from them to Fidelity that I missed almost all the March 2020 drop after selling close to the February 2020 highs. :twisted:
Did you have Fidelity pull the funds or HSA Savings Bank push?
rantk81
Posts: 288
Joined: Tue Apr 18, 2017 8:12 am

Re: Best HSA Provider for Rollover

Post by rantk81 »

Piling on. The answer is Fidelity, without a doubt.
No fees. Huge range of available investment choices.
livesoft
Posts: 73361
Joined: Thu Mar 01, 2007 8:00 pm

Re: Best HSA Provider for Rollover

Post by livesoft »

anon_investor wrote: Sun Aug 16, 2020 1:19 pm
livesoft wrote: Sun Aug 16, 2020 1:09 pm HSA Savings Bank took so long to transfer my HSA from them to Fidelity that I missed almost all the March 2020 drop after selling close to the February 2020 highs. :twisted:
Did you have Fidelity pull the funds or HSA Savings Bank push?
I sold at TDAmeritrade, moved the resulting cash to HSA Bank, then had Fidelity pull the cash which took a while. I think but cannot prove that HSA Bank wanted to get to a month-end before acting. I did not have to contact HSA nor TDAmeritrade about what I was doing.
Wiki This signature message sponsored by sscritic: Learn to fish.
GMan82
Posts: 175
Joined: Mon Dec 07, 2015 4:50 pm
Location: Georgia

Re: Best HSA Provider for Rollover

Post by GMan82 »

anon_investor wrote: Sun Aug 16, 2020 1:07 pm
Yes. But Optum probably charges you a fee to do so. I have a PayFlex HSA and they charge $25 for a trustee to trustee transfer. Some have said in other threads that when Fidelity initiates the transfer they may escape the fee, but YMMV.
2 suggestions

Transfer utilizing the 60-day rollover rule that can be done once per 365 days. Basically you withdraw however much you want to move into your bank account and then move from your bank account to Fidelity. There isn’t a fee for that.

The other option is direct trustee-to-trustee transfer. Fidelity reps told me they WILL REIMBURSE the $25 payflex fee once per year. However, when I attempted this, Payflex interpreted it as an account closure so I quickly had to reverse it and switched to the 60-day rollover. If you intend to close Payflex, then it’s a moot point, but I still want to do my paycheck deductions and receive my employer contributions there. So, next time, I was told to leave a few dollars in the Payflex account and then do the direct trustee to trustee transfer. Fidelity will need a copy of the Payflex statement uploaded showing the $25 fee. They will reimburse it once.
Last edited by GMan82 on Sun Aug 16, 2020 3:32 pm, edited 1 time in total.
invest4
Posts: 221
Joined: Wed Apr 24, 2019 2:19 am

Re: Best HSA Provider for Rollover

Post by invest4 »

Another for Fidelity.
User avatar
Soul.in.Progress
Posts: 147
Joined: Sun Jan 08, 2017 10:24 am

Re: Best HSA Provider for Rollover

Post by Soul.in.Progress »

Fidelity was super convenient for our HSA transfer needs, and had great options for investments.
Start by doing what is necessary; | then do what is possible; | and suddenly you are doing the impossible. | -- Francis of Assisi
User avatar
anon_investor
Posts: 3544
Joined: Mon Jun 03, 2019 1:43 pm

Re: Best HSA Provider for Rollover

Post by anon_investor »

GMan82 wrote: Sun Aug 16, 2020 3:30 pm
anon_investor wrote: Sun Aug 16, 2020 1:07 pm
Yes. But Optum probably charges you a fee to do so. I have a PayFlex HSA and they charge $25 for a trustee to trustee transfer. Some have said in other threads that when Fidelity initiates the transfer they may escape the fee, but YMMV.
2 suggestions

Transfer utilizing the 60-day rollover rule that can be done once per 365 days. Basically you withdraw however much you want to move into your bank account and then move from your bank account to Fidelity. There isn’t a fee for that.

The other option is direct trustee-to-trustee transfer. Fidelity reps told me they WILL REIMBURSE the $25 payflex fee once per year. However, when I attempted this, Payflex interpreted it as an account closure so I quickly had to reverse it and switched to the 60-day rollover. If you intend to close Payflex, then it’s a moot point, but I still want to do my paycheck deductions and receive my employer contributions there. So, next time, I was told to leave a few dollars in the Payflex account and then do the direct trustee to trustee transfer. Fidelity will need a copy of the Payflex statement uploaded showing the $25 fee. They will reimburse it once.
Yea... that sounds like a pain, good to know that Fidelity may reimurse the $25 fee. When PayFlex thought you were closing your account, was it because you did a trustee-to-trustee transfer for the entire HSA balance?

I am just going to continue investing at PayFlex for now since my employer is paying whatever PayFlex investing fees there may be right now, since I get charged $0 and no AUM. If that changes or I change jobs, then I will definitely move over to Fidelity. The Payflex $1k minimum cash balance is annoying, but I just count that as part of my emergency fund. I am still utilizing payroll deduction and my company contributes a few hundred dollars a year too. I can't complain too much, I have access to Vanguard funds, currently my HSA is 100% invested in VITNX (Vanguard Institutional Total Stock Market Index Fund) which has a 0.03% ER.
solargod007
Posts: 30
Joined: Sat Jun 20, 2020 2:52 pm

Re: Best HSA Provider for Rollover

Post by solargod007 »

anon_investor wrote: Sun Aug 16, 2020 12:59 pm
xerxes101 wrote: Sun Aug 16, 2020 12:48 pm
solargod007 wrote: Sat Aug 15, 2020 11:09 am Recently opened a Fidelity HSA and initiated a transfer through Fidelity to move money from Health equity (current employer's choice). Health equity charges .033% investment fee (monthly) on top of the fees charged by fund. I had to liquidate the investments in Health equity and transfer was as cash. Planning to do the transfer quarterly/semi-annually (there are no fees for the transfers at both the end) going forward.
My employer-sponsored HSA is with Optum. Optum does the exact same thing as you describe above with Health Equity; they tack on a hefty monthly investment fee on top of the fees charged by the fund. I recently transferred everything I had in the account as cash to a Fidelity HSA account and I have been very happy with the decision, but I thought you can only do this cash transfer once a year. Can you really do this quarterly or semi-annually?

Edited to add: by the way I did not pay any fees o do this since the funds went directly to my checking account, and the Fidelity representative gave me a special form to fill out to indicate the nature of the HSA transfer.
There is a limit on indirect transfers, but not direct trustee to trustee transfers.
All my transfers (2) so far are direct trustee to trustee transfers & initiated through Fidelity. Health equity (HE) doesn't allow in-kind transfers. I liquidated my investments in HE and did a "partial transfer" from HE. HE also has the option to initiate transfer out of it.. but I find fidelity easier. I spoke to both HE and Fidelity and they mentioned there are no limits on # of such transfers. I currently have my monthly contribution from paycheck to HE and will transfer out them every 3-4 months. I keep a year's worth as cash in HE and use it to pay for any current medical needs.
GMan82
Posts: 175
Joined: Mon Dec 07, 2015 4:50 pm
Location: Georgia

Re: Best HSA Provider for Rollover

Post by GMan82 »

anon_investor wrote: Sun Aug 16, 2020 3:51 pm
GMan82 wrote: Sun Aug 16, 2020 3:30 pm
anon_investor wrote: Sun Aug 16, 2020 1:07 pm
Yes. But Optum probably charges you a fee to do so. I have a PayFlex HSA and they charge $25 for a trustee to trustee transfer. Some have said in other threads that when Fidelity initiates the transfer they may escape the fee, but YMMV.
2 suggestions

Transfer utilizing the 60-day rollover rule that can be done once per 365 days. Basically you withdraw however much you want to move into your bank account and then move from your bank account to Fidelity. There isn’t a fee for that.

The other option is direct trustee-to-trustee transfer. Fidelity reps told me they WILL REIMBURSE the $25 payflex fee once per year. However, when I attempted this, Payflex interpreted it as an account closure so I quickly had to reverse it and switched to the 60-day rollover. If you intend to close Payflex, then it’s a moot point, but I still want to do my paycheck deductions and receive my employer contributions there. So, next time, I was told to leave a few dollars in the Payflex account and then do the direct trustee to trustee transfer. Fidelity will need a copy of the Payflex statement uploaded showing the $25 fee. They will reimburse it once.
Yea... that sounds like a pain, good to know that Fidelity may reimurse the $25 fee. When PayFlex thought you were closing your account, was it because you did a trustee-to-trustee transfer for the entire HSA balance?

I am just going to continue investing at PayFlex for now since my employer is paying whatever PayFlex investing fees there may be right now, since I get charged $0 and no AUM. If that changes or I change jobs, then I will definitely move over to Fidelity. The Payflex $1k minimum cash balance is annoying, but I just count that as part of my emergency fund. I am still utilizing payroll deduction and my company contributes a few hundred dollars a year too. I can't complain too much, I have access to Vanguard funds, currently my HSA is 100% invested in VITNX (Vanguard Institutional Total Stock Market Index Fund) which has a 0.03% ER.
There aren’t any limits on direct trustee-trustee transfers but fidelity only reimburses the $25 fee once per year. The $1000 cash balance is supremely annoying at PayFlex. I haven’t decided yet what to do for the future. Fidelity will be where I keep the funds but I want to transfer from PayFlex once per year at least. Do I keep the $1k cash and invest the rest and then on jan 1 move it all to Fidelity? Or just liquidate and move the investment assets, keeping the cash, so that in the new year I can invest my and my employer’s contributions immediately as they are received? 3 months out of the market with the first option vs $1k in cash earning 0.05% in the second option. :|

First world decisions. If your employer is paying all the fees including the 0.02% AUM on the investment account, then I would just stay there. It’s that fee that annoyed me enough to move my funds. From roughly $60 in fees per year not including ER to Zero.
Post Reply