Leaving Payflex HSA - avoid account closure fee?

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The529guy
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Leaving Payflex HSA - avoid account closure fee?

Post by The529guy » Tue May 01, 2018 9:17 am

I changed jobs, but still have an HSA-compliant HDHP at the new company. However, the new company does not sponsor an HSA, which is a shame.

My existing HSA is with Payflex. Previously my old employer paid their fees. I will now be hit with Payflex's $5/mo fee, so I will be moving - probably to Lively. Payflex also has a $25 account closure fee...

Payflex says "If your balance isn’t enough to cover the monthly fee for 60 calendar days or more, we’ll close your HSA."

If I transfer out of Payflex, leaving only a few dollars one cent behind, will they bill me the account closure fee when they shut down my HSA?

Anyone have any experience with this?
Last edited by The529guy on Tue May 01, 2018 9:56 am, edited 1 time in total.

motorcyclesarecool
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by motorcyclesarecool » Tue May 01, 2018 9:28 am

I think I got away with spending the balance down to zero with qualified expenses.
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.

aristotelian
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by aristotelian » Tue May 01, 2018 9:46 am

Why leave a few dollars? I would take it down to 1 cent and see what happens.

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The529guy
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by The529guy » Tue May 01, 2018 9:57 am

aristotelian wrote:
Tue May 01, 2018 9:46 am
Why leave a few dollars? I would take it down to 1 cent and see what happens.
Fixed.

Nate79
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by Nate79 » Tue May 01, 2018 10:05 am

Are you sure there is a $5/month fee now? There was an announcement some months ago that the $5/month fee was eliminated. A number of people on this board also have Payflex and reported the same thing. I'm quite doubtful my employer is paying the $5/month fee though it is possible that the fee was eliminated because our company passed some asset level. Before the announcement we were paying the $5/month fee.

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The529guy
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by The529guy » Tue May 01, 2018 10:51 am

Nate79 wrote:
Tue May 01, 2018 10:05 am
Are you sure there is a $5/month fee now? There was an announcement some months ago that the $5/month fee was eliminated. A number of people on this board also have Payflex and reported the same thing. I'm quite doubtful my employer is paying the $5/month fee though it is possible that the fee was eliminated because our company passed some asset level. Before the announcement we were paying the $5/month fee.
My previous company had a fee-reduction announcement a while back, too. It must've been only for users sponsored by their employer.

Last week, I asked Payflex what the fees would be once I was no longer covered by the employer. They told me:
Your employer was previously facilitating that fee for you, but due to not meeting the requirements, you are now responsible for this fee.

You can take the following steps to pull up the fee schedule for your Health Savings Account:
-Go under "Your Accounts" option at the top of the page
-Click on Health Savings Account
-Under the Account Actions section, click on "View Fee Schedule"
Not surprisingly, there was no account fee listed when I checked because I was still covered by the employer plan until month's end.

This morning, May 1, I received an email from Payflex with an FAQ that says:
What about HSA fees?
You’ll need to pay all the fees for your HSA. This includes the monthly administration fee. We’ll deduct this fee from your HSA each month. If you want to keep your HSA open, you’ll need to make sure that you keep enough funds in your account to cover this monthly fee, as well as any other fees and withdrawals. If your balance isn’t enough to cover the monthly fee for 60 calendar days or more, we’ll close your HSA.
I logged into Payflex, checked the fee schedule, and found a brand new "Monthly Maintenance Fee" of $5 listed.
Last edited by The529guy on Tue May 01, 2018 10:54 am, edited 1 time in total.

Nate79
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by Nate79 » Tue May 01, 2018 10:54 am

The529guy wrote:
Tue May 01, 2018 10:51 am
Nate79 wrote:
Tue May 01, 2018 10:05 am
Are you sure there is a $5/month fee now? There was an announcement some months ago that the $5/month fee was eliminated. A number of people on this board also have Payflex and reported the same thing. I'm quite doubtful my employer is paying the $5/month fee though it is possible that the fee was eliminated because our company passed some asset level. Before the announcement we were paying the $5/month fee.
My previous company had a fee-reduction announcement a while back, too. It must've been only for users sponsored by their employer.

Last week, I asked Payflex what the fees would be once I was no longer covered by the employer. They told me:
Your employer was previously facilitating that fee for you, but due to not meeting the requirements, you are now responsible for this fee.

You can take the following steps to pull up the fee schedule for your Health Savings Account:
-Go under "Your Accounts" option at the top of the page
-Click on Health Savings Account
-Under the Account Actions section, click on "View Fee Schedule"
Not surprisingly, there was no account fee listed when I checked because I was still covered by the employer plan until month's end.

This morning, May 1, I received an email from Payflex with an FAQ that says:
What about HSA fees?
You’ll need to pay all the fees for your HSA. This includes the monthly administration fee. We’ll deduct this fee from your HSA each month. If you want to keep your HSA open, you’ll need to make sure that you keep enough funds in your account to cover this monthly fee, as well as any other fees and withdrawals. If your balance isn’t enough to cover the monthly fee for 60 calendar days or more, we’ll close your HSA.
I logged into Payflex, checked the fee schedules, and found a brand new "Monthly Maintenance Fee" of $5 listed.
Good to know. Thanks for the follow-up.

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The529guy
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by The529guy » Tue May 01, 2018 6:16 pm

And I now see that they already took their $5 for May...

pkay
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by pkay » Thu Aug 09, 2018 8:00 am

The529guy,
Were you successful in transferring out your HSA money or did you spend it down and leaving one cent in the account? Spouse and I have a HSA with Payflex and another HSA with HSA Bank through our current employers. We're wondering which account to invest in and if they will give us trouble if we leave our employers or try to transfer the money out to a different HSA administrator, like Lively. Do share your thoughts if you don't mind. Thanks!

FunnelCakeBob
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by FunnelCakeBob » Thu Aug 09, 2018 11:19 am

I've no experience with Payflex. But I would transfer all but $10 out to your choice of new HSA. (I personally have and recommend Lively.). Then spend the remaining $10 on a qualified expense.
Last edited by FunnelCakeBob on Thu Aug 09, 2018 11:30 am, edited 1 time in total.

aristotelian
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by aristotelian » Thu Aug 09, 2018 11:24 am

pkay wrote:
Thu Aug 09, 2018 8:00 am
The529guy,
Were you successful in transferring out your HSA money or did you spend it down and leaving one cent in the account? Spouse and I have a HSA with Payflex and another HSA with HSA Bank through our current employers. We're wondering which account to invest in and if they will give us trouble if we leave our employers or try to transfer the money out to a different HSA administrator, like Lively. Do share your thoughts if you don't mind. Thanks!
If they try to charge you any fees or give you a hard time, you can always do a once-per-year rollover yourself by just withdrawing from your account and writing a check to your investment HSA. +1 for Lively.

pkay
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by pkay » Thu Aug 09, 2018 12:11 pm

aristotelian wrote:
Thu Aug 09, 2018 11:24 am
pkay wrote:
Thu Aug 09, 2018 8:00 am
The529guy,
Were you successful in transferring out your HSA money or did you spend it down and leaving one cent in the account? Spouse and I have a HSA with Payflex and another HSA with HSA Bank through our current employers. We're wondering which account to invest in and if they will give us trouble if we leave our employers or try to transfer the money out to a different HSA administrator, like Lively. Do share your thoughts if you don't mind. Thanks!
If they try to charge you any fees or give you a hard time, you can always do a once-per-year rollover yourself by just withdrawing from your account and writing a check to your investment HSA. +1 for Lively.
Thank you. Re: rollover myself, do I have 30 or 60 days to roll it over to the new custodian without getting penalized?

I'm still with current employers, don't plan on leaving in the foreseeable future. Wondering if it's worth the hassle doing the transfer on a regular basis going forward since we contribute to our HSA from our bi monthly paychecks.

aristotelian
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by aristotelian » Thu Aug 09, 2018 12:50 pm

pkay wrote:
Thu Aug 09, 2018 12:11 pm
without getting penalized?

I'm still with current employers, don't plan on leaving in the foreseeable future. Wondering if it's worth the hassle doing the transfer on a regular basis going forward since we contribute to our HSA from our bi monthly paychecks.
Yes, I believe it is 60 days. Whether it is worth it is up to you.

aabceh
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by aabceh » Mon Sep 10, 2018 4:56 pm

So, I spoke to Payflex Customer support and was basically told that either I will have to pay the Trustee transfer fee ($25) or the account closure fee ($25) [if I manually take out the funds and then transfer to other trustee and want to still avoid the monthly maintenance fee of $5]. Not sure if there is a way to avoid $25 fee as well as monthly maintenance fees of $5? Does anyone have experience with this - or should I just follow Payflex advise and allow them to charge me $25 for the trustee transfer?

pkay
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by pkay » Wed Sep 12, 2018 9:47 am

I ended up opening an investment HSA account with PayFlex. Will face this issue in the future too if we wanted to use another custodian. Would love to hear others experience as well.

aristotelian
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by aristotelian » Wed Sep 12, 2018 10:54 am

aabceh wrote:
Mon Sep 10, 2018 4:56 pm
So, I spoke to Payflex Customer support and was basically told that either I will have to pay the Trustee transfer fee ($25) or the account closure fee ($25) [if I manually take out the funds and then transfer to other trustee and want to still avoid the monthly maintenance fee of $5]. Not sure if there is a way to avoid $25 fee as well as monthly maintenance fees of $5? Does anyone have experience with this - or should I just follow Payflex advise and allow them to charge me $25 for the trustee transfer?
You should be able to do a once per year manual HSA rollover as allowed by IRS. Withdraw your account balance to your bank account (perhaps leaving a few cents behind to keep the account open), just as if you were reimbursing yourself for a major expense. Then write a personal check within 60 days to your new HSA custodian. Should be no fees on either end. https://medium.com/@livelyme/hsa-rollov ... 57c9d7fc4e

classicjazzfan
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by classicjazzfan » Wed Sep 12, 2018 11:50 am

aristotelian wrote:
Wed Sep 12, 2018 10:54 am
aabceh wrote:
Mon Sep 10, 2018 4:56 pm
So, I spoke to Payflex Customer support and was basically told that either I will have to pay the Trustee transfer fee ($25) or the account closure fee ($25) [if I manually take out the funds and then transfer to other trustee and want to still avoid the monthly maintenance fee of $5]. Not sure if there is a way to avoid $25 fee as well as monthly maintenance fees of $5? Does anyone have experience with this - or should I just follow Payflex advise and allow them to charge me $25 for the trustee transfer?
You should be able to do a once per year manual HSA rollover as allowed by IRS. Withdraw your account balance to your bank account (perhaps leaving a few cents behind to keep the account open), just as if you were reimbursing yourself for a major expense. Then write a personal check within 60 days to your new HSA custodian. Should be no fees on either end. https://medium.com/@livelyme/hsa-rollov ... 57c9d7fc4e
By using the one-time annual rollover to a new custodian of all but a few cents of the HSA, the OP may be able to avoid the $25 account-closing fee, but would not the $5 monthly maintenance fee continue since the account would still be open? Understandably, the OP wants to be rid of the old HSA entirely without having to pay for the privilege. Would rolling over the ENTIRE HSA balance accomplish that, or would the custodian regard an unfunded HSA to be "closed" and thus impose the $25 closing fee? But if so, from where would the fee be taken if the account balance was now $0?

aristotelian
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by aristotelian » Wed Sep 12, 2018 12:00 pm

classicjazzfan wrote:
Wed Sep 12, 2018 11:50 am
aristotelian wrote:
Wed Sep 12, 2018 10:54 am
aabceh wrote:
Mon Sep 10, 2018 4:56 pm
So, I spoke to Payflex Customer support and was basically told that either I will have to pay the Trustee transfer fee ($25) or the account closure fee ($25) [if I manually take out the funds and then transfer to other trustee and want to still avoid the monthly maintenance fee of $5]. Not sure if there is a way to avoid $25 fee as well as monthly maintenance fees of $5? Does anyone have experience with this - or should I just follow Payflex advise and allow them to charge me $25 for the trustee transfer?
You should be able to do a once per year manual HSA rollover as allowed by IRS. Withdraw your account balance to your bank account (perhaps leaving a few cents behind to keep the account open), just as if you were reimbursing yourself for a major expense. Then write a personal check within 60 days to your new HSA custodian. Should be no fees on either end. https://medium.com/@livelyme/hsa-rollov ... 57c9d7fc4e
By using the one-time annual rollover to a new custodian of all but a few cents of the HSA, the OP may be able to avoid the $25 account-closing fee, but would not the $5 monthly maintenance fee continue since the account would still be open? Understandably, the OP wants to be rid of the old HSA entirely without having to pay for the privilege. Would rolling over the ENTIRE HSA balance accomplish that, or would the custodian regard an unfunded HSA to be "closed" and thus impose the $25 closing fee? But if so, from where would the fee be taken if the account balance was now $0?
I don't see a downside to the rollover. Worst case you get hit with the closing fee that you would have to pay anyway. If you wanted to be extra sneaky you could zero out any accounts linked to Pay flex.

aabceh
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by aabceh » Wed Sep 12, 2018 12:22 pm

aristotelian wrote:
Wed Sep 12, 2018 12:00 pm
classicjazzfan wrote:
Wed Sep 12, 2018 11:50 am
aristotelian wrote:
Wed Sep 12, 2018 10:54 am
aabceh wrote:
Mon Sep 10, 2018 4:56 pm
So, I spoke to Payflex Customer support and was basically told that either I will have to pay the Trustee transfer fee ($25) or the account closure fee ($25) [if I manually take out the funds and then transfer to other trustee and want to still avoid the monthly maintenance fee of $5]. Not sure if there is a way to avoid $25 fee as well as monthly maintenance fees of $5? Does anyone have experience with this - or should I just follow Payflex advise and allow them to charge me $25 for the trustee transfer?
You should be able to do a once per year manual HSA rollover as allowed by IRS. Withdraw your account balance to your bank account (perhaps leaving a few cents behind to keep the account open), just as if you were reimbursing yourself for a major expense. Then write a personal check within 60 days to your new HSA custodian. Should be no fees on either end. https://medium.com/@livelyme/hsa-rollov ... 57c9d7fc4e
By using the one-time annual rollover to a new custodian of all but a few cents of the HSA, the OP may be able to avoid the $25 account-closing fee, but would not the $5 monthly maintenance fee continue since the account would still be open? Understandably, the OP wants to be rid of the old HSA entirely without having to pay for the privilege. Would rolling over the ENTIRE HSA balance accomplish that, or would the custodian regard an unfunded HSA to be "closed" and thus impose the $25 closing fee? But if so, from where would the fee be taken if the account balance was now $0?
I don't see a downside to the rollover. Worst case you get hit with the closing fee that you would have to pay anyway. If you wanted to be extra sneaky you could zero out any accounts linked to Pay flex.
I guess they can then charge me with 'Non-Sufficient Funds (NSF) Fee (Overdraft)' which happens to be $25 ["You would incur this fee every time you overdraw your account. To help avoid this fee, make sure that you have enough funds in your HSA before you make a payment
.
"]

aristotelian
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by aristotelian » Wed Sep 12, 2018 1:35 pm

aabceh wrote:
Wed Sep 12, 2018 12:22 pm

I guess they can then charge me with 'Non-Sufficient Funds (NSF) Fee (Overdraft)' which happens to be $25 ["You would incur this fee every time you overdraw your account. To help avoid this fee, make sure that you have enough funds in your HSA before you make a payment
.
"]
But where do they pull the overdraft charge from if you have zero balance in the account?

aabceh
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by aabceh » Wed Sep 12, 2018 1:40 pm

aristotelian wrote:
Wed Sep 12, 2018 1:35 pm
aabceh wrote:
Wed Sep 12, 2018 12:22 pm

I guess they can then charge me with 'Non-Sufficient Funds (NSF) Fee (Overdraft)' which happens to be $25 ["You would incur this fee every time you overdraw your account. To help avoid this fee, make sure that you have enough funds in your HSA before you make a payment
.
"]
But where do they pull the overdraft charge from if you have zero balance in the account?
Hmm not sure how it works. Maybe they send me mail telling me how much I owe and I am expected to pay by a certain date?

amitb00
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by amitb00 » Wed Sep 12, 2018 6:01 pm

Not payflex but I had a similar situation at HSABank. Once I left my job, employer moved my account to HSABank linked to TDAmeritrade. I moved all the money to TDAmeritrade investment account. Never logged in to HSABank. Then this week, 8 months letter I got a mail from HSABank saying I have a negative balance of $20 (8 times $2.5) and if I don’t Fund it, they will sell my securities in TDA account. I immediately funded it. I guess payflex will also bill you, if you have negative balance with them.

Crusher3412
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by Crusher3412 » Sun Sep 23, 2018 7:08 pm

Submitting a trustee transfer request will move your HSA funds from Payflex to a new HSA administrator of your choosing. This closes your Payflex HSA and eliminates the account closure fee.
You can also withdraw the full balance of your account, then close it. No funds, no fee. My favorite loophole. You then have 60 days to deposit the funds with your new administrator, alleviating any penalties.

SmartInvestor
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by SmartInvestor » Tue Oct 16, 2018 12:28 pm

Crusher3412:

That sounds like a brilliant idea, although it may be too late for me.

I've requested transferring full balance from Payflex to another HSA administrator and closing my Payflex account. Now I see a $25 fee Payflex charged. If I had only transferred the full balance out of Payflex without closing the account, I may have had a chance of not having to pay the $25 fee.

I guess I can dispute the $25 charge, because the closure fee is for future services after the transfer (to another HSA administrator). Since I don't want to have anything to do with Payflex and won't need any of their services, they should refund me $25.

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CalculatedRisk
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by CalculatedRisk » Tue Oct 16, 2018 1:37 pm

Crusher3412 wrote:
Sun Sep 23, 2018 7:08 pm
Submitting a trustee transfer request will move your HSA funds from Payflex to a new HSA administrator of your choosing. This closes your Payflex HSA and eliminates the account closure fee.
You can also withdraw the full balance of your account, then close it. No funds, no fee. My favorite loophole. You then have 60 days to deposit the funds with your new administrator, alleviating any penalties.
My PayFlex Fee Schedule says:
"Trustee transfer to new custodian fee $25.00 - If you move funds from your HSA through the trustee transfer process either in partial or full, you’ll incur this fee."

Soon2BXProgrammer
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by Soon2BXProgrammer » Tue Oct 16, 2018 4:11 pm

CalculatedRisk wrote:
Tue Oct 16, 2018 1:37 pm
Crusher3412 wrote:
Sun Sep 23, 2018 7:08 pm
Submitting a trustee transfer request will move your HSA funds from Payflex to a new HSA administrator of your choosing. This closes your Payflex HSA and eliminates the account closure fee.
You can also withdraw the full balance of your account, then close it. No funds, no fee. My favorite loophole. You then have 60 days to deposit the funds with your new administrator, alleviating any penalties.
My PayFlex Fee Schedule says:
"Trustee transfer to new custodian fee $25.00 - If you move funds from your HSA through the trustee transfer process either in partial or full, you’ll incur this fee."
Don't do a trustee transfer.. withdrawal every penny of the account into your name. Then deposit it to the new account.

https://apps.irs.gov/app/vita/content/3 ... evel=basic

yaynick
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by yaynick » Tue Oct 16, 2018 4:33 pm

I withdrew all of my funds ($0.00 balance) 6 months ago. No fee was charged. My account is still open too (probably because it has no monthly fee). Pretty good setup - no monthly/investment fees and $1k to invest.

They did randomly credit my account $0.15 last month. No idea what that was.

payflexuser
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by payflexuser » Sat Feb 02, 2019 1:08 pm

Good Afternoon,
I am getting ready to transfer my HSA from Payflex to HSAbank. As recommended by earlier users, I plan on zero-ing out the Payflex account and doing a rollover to HSAbank within 60 days. I was wondering if anyone had recent experiences with Payflex charging them the following fees (which are listed on the Payflex current fee schedule):
Insufficient fund fees $25
Monthly fee: $5
HSA account closing fee: $25

Payflex states that they will close accounts with a zero balance after 60 days. My concern is that I would be billed in the mail the above fees which total $60. Has anyone had any recent updates on what Payflex does with 0 balance accounts?

Appreciate any input you can provide.

LiveSoftMike
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by LiveSoftMike » Sun Feb 03, 2019 9:35 am

I also want to leave Payflex and want to avoid closing fee...I see Fidelity offers no fee HSA with many inexpensive investing options. I asked Vanguard about it and they said they would give to their management team as I would like to get all my investments in one place.

mimart
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by mimart » Mon Feb 04, 2019 12:15 pm

Don't do a trustee transfer.. withdrawal every penny of the account into your name. Then deposit it to the new account.

https://apps.irs.gov/app/vita/content/3 ... evel=basic



Ditto here in wanting to leave an existing HSA account. I'm with HealthEquity and they also charge the $25 closure fee. The suggestion to withdraw funds from the existing account, leaving a minimum balance - just enough to keep it open, is a good one. However, I'm not seeing a way to do that with HealthEquity.

To access my funds, I either have to use my debit card to pay for a qualified medical expense payable from my account, apply for reimbursement for an out-of-pocket medical expense which requires proof or close account, which incurs the fee. I can't withdraw cash from an ATM with the debit card.

My new account with Lively has to be in my wife's name (she has an HDHP) since I'm now on Medicare. Ooops! Can't transfer funds from existing account (in my name) to a new account in wife's. Anyone here encountered these same roadblocks with their HSA? Any suggestions as to how to get around them? Thanks.

mimart

LiveSoftMike
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by LiveSoftMike » Tue Feb 05, 2019 9:55 am

I chatted online to Payflex and they told me once account gets to 0 they do not charge account closure fee so I am pulling my funds out and rolling over to Fidelity myself instead of using trustee to trustee transfer where they will hit you during transfer. You can still use your HSA when you don't have a HDHP anymore. You can also use it to pay Medicare Part B and D premiums as well as other healthcare expenses.

cas
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by cas » Tue Feb 05, 2019 11:02 am

mimart wrote:
Mon Feb 04, 2019 12:15 pm

Ditto here in wanting to leave an existing HSA account. I'm with HealthEquity [. . .]

My new account with Lively has to be in my wife's name (she has an HDHP) since I'm now on Medicare. Ooops! Can't transfer funds from existing account (in my name) to a new account in wife's. Anyone here encountered these same roadblocks with their HSA? Any suggestions as to how to get around them? Thanks.
Now that you are on Medicare, you are correct that you can no longer contribute new annual funds to an HSA. But you can continue to own an HSA and can rollover/transfer existing HSA fund from one HSA to another all you want. Being on Medicare does not prevent this. Any HSA funds that were accumulated in your name before Medicare must continue to be in your name. (This is similar to the way you can no longer contribute to a traditional IRA after RMDs start, but must maintain the IRA in your name as long as you are alive, and can move it from one custodian's IRA account to another custodian's IRA account all you want.)

As far as the logistics of moving from one HSA custodian to another, the current Fidelity HSA megathread contains many, many, many stories and tips about doing that, including several descriptions of how to move out of Health Equity. viewtopic.php?t=263661 . The thread is very long, but if you just search for "Health Equity" that should narrow it down. And you might want to start at the end of the thread ... the most recent account of moving out of Health Equity seemed to go considerably more smoothly than earlier accounts.

venus_06
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by venus_06 » Tue Feb 05, 2019 11:47 am

For folks that have pulled funds out and reinvested into their own HSA account within 60 days, is that what's referred to as a rollover? And you are only allowed to do it one time per year without penalty, whereas if you direct the funds through a trustee to trustee transfer then you're not limited to once peryear?

fujiters
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Re: Leaving Payflex HSA - avoid account closure fee?

Post by fujiters » Tue Feb 05, 2019 1:22 pm

venus_06 wrote:
Tue Feb 05, 2019 11:47 am
For folks that have pulled funds out and reinvested into their own HSA account within 60 days, is that what's referred to as a rollover? And you are only allowed to do it one time per year without penalty, whereas if you direct the funds through a trustee to trustee transfer then you're not limited to once peryear?
Yep.

I can confirm doing a full withdrawal from Payflex, submitting form to close Payflex account, and sending a personal check for a 60 day rollover to Fidelity avoided Payflex's fees. They did take the little bit of interest ($0.32) for fees that ended up in my account at the beginning of the month.
“The purpose of the margin of safety is to render the forecast unnecessary.” -Benjamin Graham

payflexuser
Posts: 4
Joined: Sat Feb 02, 2019 12:58 pm

Re: Leaving Payflex HSA - avoid account closure fee?

Post by payflexuser » Tue Feb 05, 2019 4:58 pm

LiveSoftMike wrote:
Tue Feb 05, 2019 9:55 am
I chatted online to Payflex and they told me once account gets to 0 they do not charge account closure fee so I am pulling my funds out and rolling over to Fidelity myself instead of using trustee to trustee transfer where they will hit you during transfer. You can still use your HSA when you don't have a HDHP anymore. You can also use it to pay Medicare Part B and D premiums as well as other healthcare expenses.
Thanks for the input. I am in a situation where I no longer have my HDHP with Payflex. Like you, I am getting ready to pull out all the funds to do a rollover within 60 days, thus zero-ing out my Payflex account. While Payflex does not charge account closure fee for 0 balances, do they still charge the $5 monthly fee, and the $25 insufficient fund fee?

payflexuser
Posts: 4
Joined: Sat Feb 02, 2019 12:58 pm

Re: Leaving Payflex HSA - avoid account closure fee?

Post by payflexuser » Tue Feb 05, 2019 5:01 pm

fujiters wrote:
Tue Feb 05, 2019 1:22 pm
Yep.

I can confirm doing a full withdrawal from Payflex, submitting form to close Payflex account, and sending a personal check for a 60 day rollover to Fidelity avoided Payflex's fees. They did take the little bit of interest ($0.32) for fees that ended up in my account at the beginning of the month.
Did Payflex charge you any fees at all such as monthly fees, insufficient fund fees or account closure fees? Also, did they close your Payflex account because of the zero balance or is it still open? Appreciate your input.

fujiters
Posts: 168
Joined: Tue Mar 06, 2018 2:17 pm

Re: Leaving Payflex HSA - avoid account closure fee?

Post by fujiters » Wed Feb 06, 2019 1:56 am

payflexuser wrote:
Tue Feb 05, 2019 5:01 pm
fujiters wrote:
Tue Feb 05, 2019 1:22 pm
Yep.

I can confirm doing a full withdrawal from Payflex, submitting form to close Payflex account, and sending a personal check for a 60 day rollover to Fidelity avoided Payflex's fees. They did take the little bit of interest ($0.32) for fees that ended up in my account at the beginning of the month.
Did Payflex charge you any fees at all such as monthly fees, insufficient fund fees or account closure fees? Also, did they close your Payflex account because of the zero balance or is it still open? Appreciate your input.
They attempted to. The $0.32 was actually applied to the $5/month charge. They waived the remainder since there was no more money available.

I faxed in an account closure form shortly after withdrawing the funds to ensure the account was closed. I wanted to avoid issues with ongoing attempted monthly fee charges. If you do this all at the beginning of February, you probably can have it closed before the next monthly fee hits anyway.
“The purpose of the margin of safety is to render the forecast unnecessary.” -Benjamin Graham

mimart
Posts: 2
Joined: Mon Feb 04, 2019 11:47 am

Re: Leaving Payflex HSA - avoid account closure fee?

Post by mimart » Wed Feb 06, 2019 2:21 pm

cas wrote:
Tue Feb 05, 2019 11:02 am
mimart wrote:
Mon Feb 04, 2019 12:15 pm

Ditto here in wanting to leave an existing HSA account. I'm with HealthEquity [. . .]

My new account with Lively has to be in my wife's name (she has an HDHP) since I'm now on Medicare. Ooops! Can't transfer funds from existing account (in my name) to a new account in wife's. Anyone here encountered these same roadblocks with their HSA? Any suggestions as to how to get around them? Thanks.
Now that you are on Medicare, you are correct that you can no longer contribute new annual funds to an HSA. But you can continue to own an HSA and can rollover/transfer existing HSA fund from one HSA to another all you want. Being on Medicare does not prevent this. Any HSA funds that were accumulated in your name before Medicare must continue to be in your name. (This is similar to the way you can no longer contribute to a traditional IRA after RMDs start, but must maintain the IRA in your name as long as you are alive, and can move it from one custodian's IRA account to another custodian's IRA account all you want.)

As far as the logistics of moving from one HSA custodian to another, the current Fidelity HSA megathread contains many, many, many stories and tips about doing that, including several descriptions of how to move out of Health Equity. viewtopic.php?t=263661 . The thread is very long, but if you just search for "Health Equity" that should narrow it down. And you might want to start at the end of the thread ... the most recent account of moving out of Health Equity seemed to go considerably more smoothly than earlier accounts.
Cas,

Thanks for the information and the link to the thread referencing HealthEquity. Lots of good information there. I can now see a clear path ahead. Appreciate it.

payflexuser
Posts: 4
Joined: Sat Feb 02, 2019 12:58 pm

Re: Leaving Payflex HSA - avoid account closure fee?

Post by payflexuser » Wed Feb 06, 2019 6:11 pm

fujiters wrote:
Wed Feb 06, 2019 1:56 am
payflexuser wrote:
Tue Feb 05, 2019 5:01 pm
fujiters wrote:
Tue Feb 05, 2019 1:22 pm
Yep.

I can confirm doing a full withdrawal from Payflex, submitting form to close Payflex account, and sending a personal check for a 60 day rollover to Fidelity avoided Payflex's fees. They did take the little bit of interest ($0.32) for fees that ended up in my account at the beginning of the month.
Did Payflex charge you any fees at all such as monthly fees, insufficient fund fees or account closure fees? Also, did they close your Payflex account because of the zero balance or is it still open? Appreciate your input.
They attempted to. The $0.32 was actually applied to the $5/month charge. They waived the remainder since there was no more money available.

I faxed in an account closure form shortly after withdrawing the funds to ensure the account was closed. I wanted to avoid issues with ongoing attempted monthly fee charges. If you do this all at the beginning of February, you probably can have it closed before the next monthly fee hits anyway.
Fujiters, appreciate your response. Based on your guidance, will be starting the process soon.

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