Is HSA Bank + TD Ameritrade still the best HSA choice?

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Lieutenant.Columbo
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Re: Is HSA Bank + TD Ameritrade still the best HSA choice?

Post by Lieutenant.Columbo » Wed Mar 14, 2018 1:37 am

mpsz wrote:
Tue Mar 13, 2018 11:46 am
I'm moving my HSA Bank + TDA to Lively + TDA. The $2.50 comes from your checking account as posters above have mentioned -- $2.50/mo in regular dollars is substantially better than $5.50 in tax-advantaged dollars. This isn't highlighted anywhere near enough!
E5797 wrote:
Tue Mar 13, 2018 8:50 pm
Is there a way to pay the HSA Bank fees without having them come out of your tax protected account? Like sending in a check or paying from another account?
TropikThunder wrote:
Tue Mar 13, 2018 9:11 pm
That's an excellent question, but I don't know the answer. If there is no way to avoid the fee coming from the HSA balance, then that's another big point in favor of Lively.
with Saturna/Pershing HSA account, the $24.95/yr ($10 = fee, $14.95 = trade commission) for one trade/yr + reinvesting into VSIAX + account maintenance comes out of the pre-tax HSA contribution.
Lt. Columbo: Well, what do you know. Here I am talking with some of the smartest people in the world, and I didn't even notice!

skylar
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Re: Is HSA Bank + TD Ameritrade still the best HSA choice?

Post by skylar » Wed Mar 14, 2018 7:17 am

TropikThunder wrote:
Tue Mar 13, 2018 9:11 pm
E5797 wrote:
Tue Mar 13, 2018 8:50 pm
Is there a way to pay the HSA Bank fees without having them come out of your tax protected account? Like sending in a check or paying from another account?
That's an excellent question, but I don't know the answer. If there is no way to avoid the fee coming from the HSA balance, then that's another big point in favor of Lively.
I asked HSA Bank a few years ago whether one could do this, and they told me that it used to be possible, but isn't any longer.

aristotelian
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Re: Is HSA Bank + TD Ameritrade still the best HSA choice?

Post by aristotelian » Wed Mar 14, 2018 7:49 am

skylar wrote:
Wed Mar 14, 2018 7:17 am
TropikThunder wrote:
Tue Mar 13, 2018 9:11 pm
E5797 wrote:
Tue Mar 13, 2018 8:50 pm
Is there a way to pay the HSA Bank fees without having them come out of your tax protected account? Like sending in a check or paying from another account?
That's an excellent question, but I don't know the answer. If there is no way to avoid the fee coming from the HSA balance, then that's another big point in favor of Lively.
I asked HSA Bank a few years ago whether one could do this, and they told me that it used to be possible, but isn't any longer.
Lively is $30 annually for the same TD investing platform, and they deduct the fees from your linked savings account. Nothing comes out of the HSA itself.

dalmatiandan
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Re: Is HSA Bank + TD Ameritrade still the best HSA choice?

Post by dalmatiandan » Wed Mar 14, 2018 10:48 am

skylar wrote:
Wed Mar 14, 2018 7:17 am
TropikThunder wrote:
Tue Mar 13, 2018 9:11 pm
E5797 wrote:
Tue Mar 13, 2018 8:50 pm
Is there a way to pay the HSA Bank fees without having them come out of your tax protected account? Like sending in a check or paying from another account?
That's an excellent question, but I don't know the answer. If there is no way to avoid the fee coming from the HSA balance, then that's another big point in favor of Lively.
I asked HSA Bank a few years ago whether one could do this, and they told me that it used to be possible, but isn't any longer.
Another data point for the community; I happened to ask this question of HSA Bank last week, they replied: Unfortunately, you can not pre-pay fees. This feature may be available in the future.

Dan

mpsz
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Re: Is HSA Bank + TD Ameritrade still the best HSA choice?

Post by mpsz » Wed Mar 28, 2018 5:09 pm

broslami wrote:
Tue Mar 13, 2018 9:35 pm
mpsz wrote:
Tue Mar 13, 2018 11:46 am
I'm moving my HSA Bank + TDA to Lively + TDA. The $2.50 comes from your checking account as posters above have mentioned -- $2.50/mo in regular dollars is substantially better than $5.50 in tax-advantaged dollars. This isn't highlighted anywhere near enough!
I'm trying to do the same thing but after a month and a half the transfer is still pending......
I'm also trying, going on 4 weeks now. HSA Bank is turning this into a nasty breakup.

HSA Bank says this is expected to take 6 - 8 weeks when there's a brokerage account involved, even if it is not an "in-kind" transfer. I liquidated the brokerage account and transferred it back to the HSA cash account before I started the transfer, and HSA Bank removed $0.02 in accrued interest from TD Ameritrade over two weeks ago. Meanwhile, I have thousands of dollars sitting in cash earning 0.05% interest.

Honestly, I suspect they want to collect another month of account fees, in addition to the transfer-out fee. They cannot do this over chat but will waive one month's fees if you call. Yay?

Kaufmanrider
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Re: Is HSA Bank + TD Ameritrade still the best HSA choice?

Post by Kaufmanrider » Wed Mar 28, 2018 5:48 pm

I guess I am lucky, my Health Insurance provider covers my HSA Bank fees. :D

I logged onto my account to check investing fees and open a TD Ameritrade Account as I just started my HSA plan this year. I found this statement on my investment options page: $0.00 monthly investment service fee may be charged by HSA Bank.

TropikThunder
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Re: Is HSA Bank + TD Ameritrade still the best HSA choice?

Post by TropikThunder » Wed Mar 28, 2018 8:12 pm

mpsz wrote:
Wed Mar 28, 2018 5:09 pm
I'm also trying, going on 4 weeks now. HSA Bank is turning this into a nasty breakup.

HSA Bank says this is expected to take 6 - 8 weeks when there's a brokerage account involved, even if it is not an "in-kind" transfer. I liquidated the brokerage account and transferred it back to the HSA cash account before I started the transfer, and HSA Bank removed $0.02 in accrued interest from TD Ameritrade over two weeks ago. Meanwhile, I have thousands of dollars sitting in cash earning 0.05% interest.

Honestly, I suspect they want to collect another month of account fees, in addition to the transfer-out fee. They cannot do this over chat but will waive one month's fees if you call. Yay?
Did they (or someone else) advise that you shouldn't do an in-kind transfer? When I moved my account from HSA Bank/TDA to Lively/TDA, the in-kind transfer of my stock ETF only took 2 days. I had zero cash in the HSA Bank account itself so I don't know how long that would have taken, but others have noted that in-kind transfers are fast (at least in the Lively thread).
viewtopic.php?f=2&t=228522&hilit=lively

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jhfenton
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Re: Is HSA Bank + TD Ameritrade still the best HSA choice?

Post by jhfenton » Wed Mar 28, 2018 8:23 pm

mpsz wrote:
Wed Mar 28, 2018 5:09 pm
I'm also trying, going on 4 weeks now. HSA Bank is turning this into a nasty breakup.

HSA Bank says this is expected to take 6 - 8 weeks when there's a brokerage account involved, even if it is not an "in-kind" transfer. I liquidated the brokerage account and transferred it back to the HSA cash account before I started the transfer, and HSA Bank removed $0.02 in accrued interest from TD Ameritrade over two weeks ago. Meanwhile, I have thousands of dollars sitting in cash earning 0.05% interest.

Honestly, I suspect they want to collect another month of account fees, in addition to the transfer-out fee. They cannot do this over chat but will waive one month's fees if you call. Yay?
You have my condolences. I would have gone ballistic by now. :annoyed

For all my complaints about Fifth-Third and HSAs, they are fantastic at trustee-to-trustee transfers. On Friday morning, I emailed Lively and gave them the info to prepare another quarterly transfer. Friday afternoon Lively emailed me the form for e-signature. Either late on Friday Ohio time or on Monday, they faxed the transfer form to Fifth-Third. On Tuesday (yesterday) morning, the requested amount had disappeared from my Fifth-Third HSA. Based on previous experience, Fifth-Third mailed the check on Tuesday, and it will show up at Lively on Friday (if they or their bank are open) or Monday evening.

There is zero reason a transfer should take 6 - 8 weeks.

krick
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Re: Is HSA Bank + TD Ameritrade still the best HSA choice?

Post by krick » Thu Mar 29, 2018 11:26 am

I have an HSA through Optum Bank as required by my employer to receive their contribution.

Optum has three different account "types" that you can choose from. I believe you can contact them and have it switched at any time.

Health eAccess account: $1.00 monthly maintenance fee (waived if cash balance is over $500) + $3.00 monthly investment fee
Health eSaver account: $3.00 monthly maintenance fee (waived if cash balance is over $5000) + $0.00 monthly investment fee
Health eInvestor account: $3.00 monthly maintenance fee (waived if cash balance is over $5000) + $2.50 monthly investment fee

The eSaver and eInvestor accounts earn a small amount of interest on the cash balance. The eAccess account doesn't earn interest.

For cash balances between $5,000 and $14,999.99, the current interest rate is 0.2% for eSaver and 0.1% for eInvestor.

So I chose the "eSaver" account type and keep $5000 in cash to avoid all fees and also get the highest interest on my cash balance.

Here's the list of funds that are available to invest in...

American Funds Capital World
BlackRock Equity Dividend K
Dodge & Cox Income
Fidelity Low-Priced Stock
John Hancock Fundamental Large Cap Core
Lord Abbett High Yield
Neuberger Berman Genesis Fund - INST
Oppenheimer Developing Markets
PIMCO GNMA
PIMCO Low Duration
PIMCO Real Return Fund
Schwab Target 2020 Index Fund I
Schwab Target 2030 Index Fund I
Schwab Target 2040 Index Fund I
Schwab Target 2050 Index Fund I
Schwab Target 2060 Index Fund I
T. Rowe Price Blue Chip
Vanguard Equity-Income - A
Vanguard Extended Market
Vanguard Global Equity
Vanguard Healthcare
Vanguard Life Strategy-Growth
Vanguard LifeStrategy-Conservative Growth
Vanguard LifeStrategy-Moderate Growth
Vanguard Mid Cap Index - A
Vanguard REIT
Vanguard S&P 500 Index - A
Vanguard Small Cap Index - A
Vanguard Total Stock Market 10
Vanguard Treasury Money Market
Vanguard Wellington - A

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jhfenton
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Re: Is HSA Bank + TD Ameritrade still the best HSA choice?

Post by jhfenton » Thu Mar 29, 2018 12:15 pm

krick wrote:
Thu Mar 29, 2018 11:26 am
I have an HSA through Optum Bank as required by my employer to receive their contribution.
You're not required to keep the money there, though. The cash drag on $5,000 earning 0.2% is something over $100 per year, depending on what other fixed income you compare it to.

mpsz
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Re: Is HSA Bank + TD Ameritrade still the best HSA choice?

Post by mpsz » Thu Mar 29, 2018 7:24 pm

TropikThunder wrote:
Wed Mar 28, 2018 8:12 pm
Did they (or someone else) advise that you shouldn't do an in-kind transfer?
Nope, I just thought it would be faster to go to cash, and I was okay with the money being out of the market for a short while. I was wrong. :oops:

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