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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Joined: Wed Jan 17, 2018 11:04 am

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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Joined: Mon Sep 10, 2018 4:29 pm

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
Posts: 422
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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.

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