Has anyone with HSAs with HSABank tried rolling over to Fidelity?

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Topic Author
musicality
Posts: 5
Joined: Sun Nov 18, 2018 6:25 pm

Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by musicality » Wed Dec 12, 2018 6:47 pm

I will be starting my first HSA as a federal employee next month. Feds have to open our HSA accounts with HSA Bank as the provider, then open an investment account with TDAmeritrade (or Devinir). I read this https://thefinancebuff.com/best-hsa-pro ... money.html and wonder if I can bypass opening the TDAmeritrade account altogether. Can I follow these instructions and still be able to move pretax contributions from HSABank to Fidelity (without taking a distribution)? Also, have any folks with HSABank paid the monthly fee in lieu of keeping the required 1K in cash?

exigent
Posts: 867
Joined: Fri May 07, 2010 8:49 am

Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by exigent » Thu Dec 13, 2018 7:09 am

Lots of people have been talking about this atvthe following link:

viewtopic.php?f=10&t=263661

Yes, it’s straightforward to move money from HSA Bank to Fidelity.

I did a full account transfer (and closed it) but it’s also possible to rollover/transfer less than the full amount.

Direct transfers will likely incur a fee, or you can do an I direct rollover every 12 months. I did a transfer to get that account over to Fidelity and will then do annual rollovers from my work-related HSA at Optum to get annual contributions to the right place.

Be aware that HSA Bank limits online distributions to $2500/day, though you can probably (?) request a check if you want to do a bigger rollover. Or go through the formal transfer process (Fidelity has a form/online interface to initiate this).

You can also skip HSA Bank entirely and just contribute directly to Fidelity yourself, but you would miss out on any matching funds and you would also miss out on dodging Soc Sec taxes.

EggCarton
Posts: 27
Joined: Sat Sep 01, 2018 11:03 am

Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by EggCarton » Thu Dec 13, 2018 9:44 am

OP,
Current Fed. here who is setup to use a Fidelity HSA. My HDHP insurer deposits their contribution to HSA Bank. I have not found anything that says that my payroll contribution needs to be deposited in HSA Bank as well. I was responsible for physically keying in my HSA payroll contribution information including the amount, routing number and account number via the "myEPP" website. Accordingly, I just input my Fidelity details. You will still have to rollover/transfer your insurer's contribution from HSA Bank to Fidelity.
Also, you should check your plan details as they relate to HSA Bank. For instance, I have no account minimum fees or monthly fees.
Fingers crossed this all works out as planned...

Topic Author
musicality
Posts: 5
Joined: Sun Nov 18, 2018 6:25 pm

Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by musicality » Thu Dec 13, 2018 12:37 pm

Here's a follow on question. I just got this below from HR (which makes me ask: If you open an account at Fidelity and ask PayRoll to deposit there, but hope they deposit the USG contribution to HSAbank, which you later roll over to Fidelity, Do you technically have TWO HSAs?)

In response to your inquiry, we are providing the following :

Please log into your MyPay account.

On the main menu, select "Health Savings Account"

• To START or CHANGE, you need your Plan's Routing Transit Number and Account Number. Your account must be a personal, non-commercial account. If you do not have this information, please contact your Plan to obtain this information.

• If you change your Plan's Routing Transit Number, you may also need to change your Account Number. You can obtain this information from your Plan.

• Please note, there will be a lag time between your actual enrollment in the High Deductible Health Plan and the setting up of your HSA.

• You can only have one active Health Savings Account.

• It is the Employee’s responsibility to follow all IRS Regulations concerning their Health Savings Account, including contributions limits. Visit www.irs.govfor more details.

Please feel free to contact me if you have any questions.

Thank you for contacting The Human Resource Office .

EggCarton
Posts: 27
Joined: Sat Sep 01, 2018 11:03 am

Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by EggCarton » Thu Dec 13, 2018 2:12 pm

I'm unclear what "USG" stands for. It's my understanding that your insurer's contribution is deposited directly to, in this instance, HSA Bank. The insurer's contribution shouldn't go through your employer's payroll.
My agency doesn't use MyPay so I can really speak to how that system works. However, I have not heard or read that you can "only have one active Health Savings Account" as noted by your HR department. I suspect, but do not know, that what HR is trying to say is that you can only make your employee contribution via payroll to a single HSA account (i.e. you can't split your contribution directly from payroll into 2 HSA accounts).

ChrisC
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Location: North Carolina

Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by ChrisC » Thu Dec 13, 2018 4:32 pm

Retired Fed here who has had HDHP/HSAs with Aetna and GEHA while on active duty status and now in retirement. At one time, I had 3 different HSAs with 3 different custodians. Currently, I have two HSA accounts, one with Optum Bank, where I made my family and catch-up contributions, and the other with HsaBank, where GEHA makes the employer-based contributions.

(Edited, perhaps the following is restricted to retirees, as my HSA contributions weren't deducted from my pension annuity) One can establish any HSA for your own contributions, but OPM and your plan provider dictate the bank custodian for its separate contributions to the HSA for you. I've been told that there is no real option for the OPM/plan provider contributions going to another custodian different from the one the plan establishes for you. However, I have transferred my entire employer based HSA to other custodians; I did this at the end of my HDHP relationship with Aetna. And I'm planning on do it shortly with the end of my relationship with my GEHA HDHP this year.

If you go on Medicare, GEHA will stop making HSA contributions for you immediately and place the contributions in a HRA. This can be mess! I spent 30 minutes on the phone with GEHA about this as I went on Medicare this December.

gclancer
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Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by gclancer » Thu Dec 13, 2018 6:08 pm

EggCarton wrote:
Thu Dec 13, 2018 9:44 am
OP,
Current Fed. here who is setup to use a Fidelity HSA. My HDHP insurer deposits their contribution to HSA Bank. I have not found anything that says that my payroll contribution needs to be deposited in HSA Bank as well. I was responsible for physically keying in my HSA payroll contribution information including the amount, routing number and account number via the "myEPP" website. Accordingly, I just input my Fidelity details. You will still have to rollover/transfer your insurer's contribution from HSA Bank to Fidelity.
Also, you should check your plan details as they relate to HSA Bank. For instance, I have no account minimum fees or monthly fees.
Fingers crossed this all works out as planned...
It will work out. For feds, what you’ve detailed above is “the answer”.

Cash
Posts: 1368
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Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by Cash » Thu Dec 13, 2018 10:10 pm

For those who have done a direct rollover from TD Ameritrade, was your TD account closed? If so, did that affect anything with the HSA Bank account where the premium pass-through contributions are deposited?

Seal the Deal
Posts: 36
Joined: Sat Jan 20, 2018 7:25 pm

Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by Seal the Deal » Fri Dec 14, 2018 6:53 am

gclancer wrote:
Thu Dec 13, 2018 6:08 pm
EggCarton wrote:
Thu Dec 13, 2018 9:44 am
OP,
Current Fed. here who is setup to use a Fidelity HSA. My HDHP insurer deposits their contribution to HSA Bank. I have not found anything that says that my payroll contribution needs to be deposited in HSA Bank as well. I was responsible for physically keying in my HSA payroll contribution information including the amount, routing number and account number via the "myEPP" website. Accordingly, I just input my Fidelity details. You will still have to rollover/transfer your insurer's contribution from HSA Bank to Fidelity.
Also, you should check your plan details as they relate to HSA Bank. For instance, I have no account minimum fees or monthly fees.
Fingers crossed this all works out as planned...
It will work out. For feds, what you’ve detailed above is “the answer”.
Can anyone who is using this method (payroll contribution deposited to Fidelity HSA instead of HSA Bank) confirm that you are not paying FICA taxes on that amount? What I found from Fidelity's HSA website was ambiguous with the use of "will" and "may":

"3. Opening an HSA with a third-party provider, other than your employer, may limit your opportunity to use pre-tax payroll contributions. Although post-tax contributions are federal income tax-deductible, you will be required to pay FICA taxes. This means third-party HSAs may not be as tax-advantaged as employer-provided HSAs."

Topic Author
musicality
Posts: 5
Joined: Sun Nov 18, 2018 6:25 pm

Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by musicality » Fri Dec 14, 2018 8:32 am

gclancer wrote:
Thu Dec 13, 2018 6:08 pm
EggCarton wrote:
Thu Dec 13, 2018 9:44 am
OP,
Current Fed. here who is setup to use a Fidelity HSA. My HDHP insurer deposits their contribution to HSA Bank. I have not found anything that says that my payroll contribution needs to be deposited in HSA Bank as well. I was responsible for physically keying in my HSA payroll contribution information including the amount, routing number and account number via the "myEPP" website. Accordingly, I just input my Fidelity details. You will still have to rollover/transfer your insurer's contribution from HSA Bank to Fidelity.
Also, you should check your plan details as they relate to HSA Bank. For instance, I have no account minimum fees or monthly fees.
Fingers crossed this all works out as planned...
It will work out. For feds, what you’ve detailed above is “the answer”.
Sounds promising. I just don't understand how these pieces talk to each other. So when you enter your Fidelity account details into payroll website, how will the US government's insurance company (GEHA) know my HSAbank account details? Perhaps GEHA has my HSAbank account number or I can call to give it to them.

I'm interested in assuring my money goes to Fidelity pretax, but if it goes directly from payroll, I assume it will.

gclancer
Posts: 571
Joined: Sat Apr 27, 2013 10:34 am

Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by gclancer » Fri Dec 14, 2018 4:26 pm

Seal the Deal wrote: Can anyone who is using this method (payroll contribution deposited to Fidelity HSA instead of HSA Bank) confirm that you are not paying FICA taxes on that amount?
The payroll system knows whether you’re covered by a HDHP based on the FEHB code it is pulling your premiums based on. It will only allow you to contribute to an HSA with a proper FEHB code. You certify that you’re depositing the money into an HSA when you enter the account and routing number in, so it’ll be pretax. You could be sending the money to a non-HSA and the system wouldn’t know it necessarily (thus, it would still be pretax). Come tax time, your W-2 wouldn’t match your 5498-SA and the jig would be up, so it’s a trust but verify system essentially.

Topic Author
musicality
Posts: 5
Joined: Sun Nov 18, 2018 6:25 pm

Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by musicality » Fri Dec 14, 2018 5:43 pm

Ah, the verify part exists at tax time. But who is to say its wrong to have a separate bona fide HSA? I called GEHA senior customer service today, and she will look into this further. But i talked to her at length of the benefit of working with Fidelity instead of HSABank. It makes sense, she said, to have one and the same HSA manager as investment provider. She will bring it up to management. I said she might get a lot more customers enrolling in GEHA HDHP if they offered Fidelity as their HSA. (But for my first year, I"m a bit reluctant to work around HSAbank. I may just pay the dumb 1000$ minimum for HSAbank in cash, and invest in TDAmeritrade SPTM and pay what seems to be the 50$ fee to roll out the money at the end of each year, to Fidelity.)

gclancer
Posts: 571
Joined: Sat Apr 27, 2013 10:34 am

Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by gclancer » Fri Dec 14, 2018 6:57 pm

musicality wrote:
Fri Dec 14, 2018 5:43 pm
But who is to say its wrong to have a separate bona fide HSA?
You’re allowed to have a separate bonafide HSA (both Fidelity and HSA Bank will send 5498-SAs so you would receive two). I was responding to the question of whether the deposit to Fidelity will be pre-tax, it will, so long as your certify that the account the money is being deposited into via the payroll system is an HSA. Make sense? That is, the payroll system is oblivious to the fact that your employee contributions are currently going to HSA Bank, it is just sending it to an account and routing number that you claim is an HSA.

Topic Author
musicality
Posts: 5
Joined: Sun Nov 18, 2018 6:25 pm

Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by musicality » Fri Dec 14, 2018 8:03 pm

good info, but I think I'm going to hold back on duplicate HSAs in my first year and study the situation. I doubt my contributiosn this late in the working career will grow much. I'm lucky if I save 30K by the time I retire. I'm very interested to know if folks think HSAbank 1K minimum in cash is a good idea, or if one is better off paying a monthly fee for not meeting that minimum? I understand they will not let you invest until you have that first 1K in the account, and then they require 1K to remain in cash. It is possible I'm wrong on that "fact" - and the requirement may vary with the insurance company.

motorcyclesarecool
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Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by motorcyclesarecool » Fri Dec 14, 2018 9:13 pm

musicality wrote:
Wed Dec 12, 2018 6:47 pm
I will be starting my first HSA as a federal employee next month. Feds have to open our HSA accounts with HSA Bank as the provider, then open an investment account with TDAmeritrade (or Devinir). I read this https://thefinancebuff.com/best-hsa-pro ... money.html and wonder if I can bypass opening the TDAmeritrade account altogether. Can I follow these instructions and still be able to move pretax contributions from HSABank to Fidelity (without taking a distribution)? Also, have any folks with HSABank paid the monthly fee in lieu of keeping the required 1K in cash?
1. For GEHA’s arrangement with HSABank, there is no minimum cash balance requirement prior to investing with TD Ameritrade.
2. My payroll is handled through NFC. I had to manually add HSA Bank as a specific HSA allotment under the “self service” option for Health Savings Accounts if I wanted to contribute more than the premium passthrough. When the allotment is initiated using the self-service button under “Health Savings Accounts”I can confirm that this amount is exempted from FICA / OASDI and Medicare taxable income. If you do it as one of your up to 16 allotments available under “Allotments” then it won’t be exempt.
3. Beginning with my first paycheck in January, I’ll be contributing to my Fidelity HSA via payroll deduction. I have the change queued up. I’ll keep a cash balance at HSABank to pay for prescriptions and doctors who want payment upfront. I’ll use Fidelity’s online bill pay to pay providers who send bills.
4. If your payroll isn’t processed by NFC, then I don’t know whether any of this applies to you
5. It is your responsibility to understand and avoid excess contributions to your HSA. Unlike with TSP contributions, the system won’t automatically stop before you exceed the maximum.
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.

EggCarton
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Joined: Sat Sep 01, 2018 11:03 am

Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by EggCarton » Tue Jan 01, 2019 8:59 pm

Due to some misunderstanding with my HR Department, my HSA contribution to Fidelity went through for pay period 25 of 2018. While I will have to deal with walking this contribution back (as I was not covered by a HDHP for 2018), I can confirm that entering your Fidelity HSA details into NFC does work.

sco
Posts: 839
Joined: Thu Sep 24, 2015 2:28 pm

Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by sco » Wed Jan 02, 2019 8:58 pm

What form are people using at Fidelity to make sure their check is marked as a Rollover, and not a contribution?

Cash
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Joined: Wed Mar 10, 2010 10:52 am

Re: Has anyone with HSAs with HSABank tried rolling over to Fidelity?

Post by Cash » Thu Jan 10, 2019 1:37 pm

Cash wrote:
Thu Dec 13, 2018 10:10 pm
For those who have done a direct rollover from TD Ameritrade, was your TD account closed? If so, did that affect anything with the HSA Bank account where the premium pass-through contributions are deposited?
Update: My transfer from TD to Fidelity was completed yesterday. I left a couple hundred at TD to keep the account open. We’ll see if that works.

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