Rumor mill - Fidelity starting individual HSA's Nov. 15th

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southerndoc
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by southerndoc » Thu Jan 10, 2019 9:48 pm

I've had two HealthEquity transfers. The first was started online 11/21 and was received by Fidelity on 12/17. This was for $750.

I started another transfer for the entire account on 12/15, waited a little longer to mail the paperwork (mailed maybe 12/23?), and it's still in progress. HealthEquity closed my account sometime last week around the 1/3 or 1/4 with their homepage showing a $0 balance and a notice that the account was closed.

What irritates me is that there is activity listed yesterday (1/9) for a $2.50 monthly administrative fee and then today (1/10) they charged a $25 account closure fee and just today sent the money to Fidelity.

HealthEquity definitely isn't a great HSA custodian, and I question some of their tactics (delayed payments with online bill pay). I'm very happy to be getting away from them.

Hopefully your issues get resolved quickly.

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abuss368
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by abuss368 » Thu Jan 10, 2019 9:49 pm

You will need a high deductible health care plan (as defined by the IRS) to have an HSA.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

danaht
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by danaht » Thu Jan 10, 2019 11:13 pm

Looks like my transfer from HSA Bank/ TD Ameritrade to Fidelity just completed.
Some notes for people who are thinking about transferring:
1) I started the transfer on January 3rd - so it only took 6 business days to complete.
2) I transferred all of of the cash in my HSA Bank savings account to TD Amertrade the day before (on Jan 2nd).
3) I had 4 ETFs in addition to the cash transferring - and all ETFs were transferred as whole shares.
4) I did not have to talk to anyone at TD Ameritrade, HSA Bank, or Fidelty to do this complete transfer.
5) TD Ameritrade did not charge any transfer fees! Perhaps TD Ameritrade does not charge a transfer fee if you have another brokerage account with them (I have a taxable CMA account at TD Ameritrade).
6) Also, I plan on closing my HSA Bank account early next week to avoid any future monthly fees for a $0 account balance.

Good luck to all those trying to transfer!
Last edited by danaht on Sat Jan 12, 2019 2:05 pm, edited 1 time in total.

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Davinci
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Davinci » Thu Jan 10, 2019 11:27 pm

I've had two HealthEquity transfers. The first was started online 11/21 and was received by Fidelity on 12/17. This was for $750.

I started another transfer for the entire account on 12/15, waited a little longer to mail the paperwork (mailed maybe 12/23?), and it's still in progress. HealthEquity closed my account sometime last week around the 1/3 or 1/4 with their homepage showing a $0 balance and a notice that the account was closed.

What irritates me is that there is activity listed yesterday (1/9) for a $2.50 monthly administrative fee and then today (1/10) they charged a $25 account closure fee and just today sent the money to Fidelity.

HealthEquity definitely isn't a great HSA custodian, and I question some of their tactics (delayed payments with online bill pay). I'm very happy to be getting away from them.

Hopefully your issues get resolved quickly.
southerndoc,

Thank you for sharing your experience with Health Equity and your advice! Checking my Health equity account transaction history, I am seeing a $25 account closure fee, a $14.95 monthly investment fee, and also the 2.50 monthly administrative fee all charged on 1/7/19. This is very frustrating as I only had cash for over 1 month so they should not charge the investment fee for the last month. :annoyed I also question some of their tactics as I noted in my previous post they keep adding and changing fees hoping that customers will not notice.

I guess the good news is that it also showing on 1/7/19 the Trustee to Trustee transfer FBO for the remaining amount and a $0 balance so hoping they will finally send my money to Fidelity soon since its been almost 2 months!. I am also very happy to be getting away from them! :D

All bogleheads with Health Equity accounts should seriously consider going to either Fidelity or Lively as those are the 2 now without administrative fees.

Cheers
" Simplicity is the ultimate sophistication" Leonardo Da Vinci.

4nwestsaylng
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by 4nwestsaylng » Thu Jan 10, 2019 11:59 pm

grp2c wrote:
Tue Dec 18, 2018 4:14 pm
DippityDoo wrote:
Tue Dec 18, 2018 3:49 pm
Just a quick post with my experience. TDA charged me $50 to transfer (all cash) to Fidelity. Today Fidelity informed me their updated instructions are that they do NOT reimburse that fee. Even though I had it in writing that it would be reimbursed, I'm out of luck. I'm not going to get my nose out of joint over $50 but thought I'd post a quick update here.
Disappointing fidelity will not reimburse you. I had a similar experience when I called to get the fee reimbursed after they said they would. They said they would have to review the call log. In my case, it was the accounts transfer team who made the promise to reimburse the fee. Eventually they said they would honor their original promise. Maybe if you call the accounts transfer team and not the HSA team.
could you avoid the $50 fee by selling all assets in TDA and transferring the cash into the HSA Bank account (ie zero TDA balance), and then having HSA Bank do the TOA to Fidelity? I am thinking of transferring to Fidelity, and at this time I am all cash in my TDA HSA account.

aorin
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by aorin » Fri Jan 11, 2019 8:55 am

I am finding the Fidelity HSA integration lacking. I can't find anywhere that shows me my 2018 contributions, and my 2019 Contributions. I transferred my HSA to Fidelity soon after they opened, and stopped my contributions to my employers HSA. Then to top off the small amount I had left to contribute for the year, I transferred some cash from my brokerage account, and then in a second transaction on the 31st of December I moved the last 20 dollars to max out my year. The transaction didn't show up until the 3rd of January, and it just says "Current Year."

So far the only place I can find actual contribution amounts is on the monthly statement, but it doesn't list what year they are for, and I dont want to wait till February to adjust my current years contributions. I have talked/emailed with fidelity and so far they tell me to look at the transfer page, all that shows is the yearly maximums, not how much I have contributed so far. The second person told me that I should look at my activity, and since it says current year its 2019(The one I initiated on the 31st, and picked 2018 year), I don't think he is correct..but I have no way to see.

Has anyone found anywhere that shows this information? Maybe the NetBenefitits HSA Summary Page link that doesn't work is suppose to have that...

afatcat
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by afatcat » Fri Jan 11, 2019 9:14 am

4nwestsaylng wrote:
Thu Jan 10, 2019 11:59 pm
grp2c wrote:
Tue Dec 18, 2018 4:14 pm
DippityDoo wrote:
Tue Dec 18, 2018 3:49 pm
Just a quick post with my experience. TDA charged me $50 to transfer (all cash) to Fidelity. Today Fidelity informed me their updated instructions are that they do NOT reimburse that fee. Even though I had it in writing that it would be reimbursed, I'm out of luck. I'm not going to get my nose out of joint over $50 but thought I'd post a quick update here.
Disappointing fidelity will not reimburse you. I had a similar experience when I called to get the fee reimbursed after they said they would. They said they would have to review the call log. In my case, it was the accounts transfer team who made the promise to reimburse the fee. Eventually they said they would honor their original promise. Maybe if you call the accounts transfer team and not the HSA team.
could you avoid the $50 fee by selling all assets in TDA and transferring the cash into the HSA Bank account (ie zero TDA balance), and then having HSA Bank do the TOA to Fidelity? I am thinking of transferring to Fidelity, and at this time I am all cash in my TDA HSA account.
I moved cash to TDA and then transferred in kind (ETFs and cash) to Fidelity, and had no fee charged. It was all done online. I think transferring from HSA Bank would be a more manual process.

I had a -$2.50 balance from the Jan fee at HSA Bank when I called to close my account a few days ago, they said they would waive it and close, but the -$2.50 cash account still shows when I log in today though the TDA link is gone. Not sure if it's actually closed yet or not.

lstone19
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by lstone19 » Fri Jan 11, 2019 9:28 am

afatcat wrote:
Fri Jan 11, 2019 9:14 am
I moved cash to TDA and then transferred in kind (ETFs and cash) to Fidelity, and had no fee charged. It was all done online. I think transferring from HSA Bank would be a more manual process.

I had a -$2.50 balance from the Jan fee at HSA Bank when I called to close my account a few days ago, they said they would waive it and close, but the -$2.50 cash account still shows when I log in today though the TDA link is gone. Not sure if it's actually closed yet or not.
I've been doing the opposite, sold all in TDA and moved back to HSAbank. After selling all and transferring back to HSAbank in mid-December, I had to wait until the beginning of this month for final dividend to post (money was in a declare daily, pay monthly bond fund). Transferred that cash last week, two days ago TDA account dropped off my HSAbank screen.

Meanwhile, Fidelity says they sent transfer form to HSAbank on 12/28 with estimated completion today but nothing has happened at HSAbank. Not sure if TDA dropping off HSAbank screen is because they're starting to process the transfer or because of zero balance (but if the latter, why did it not happen last month - the account sat two weeks with a zero balance and I'm not convinced HSAbank's systems are smart enough to know there was a dividend payment pending).

Considering that there's still tax forms to come from them, I'm not seeing why I should formally ask them to close the account after they finally process the transfer, especially since they quickly closed (or so it appears) the TDA account. I assume once it has a zero balance for some time, they'll close it on their own. All I can say is that with all the delays I've seen with HSAbank (even transfers between them and TDA all take longer than they should), I will be glad when this is all finished and I can say I will never do business with HSAbank again.

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jeffyscott
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by jeffyscott » Fri Jan 11, 2019 10:14 am

aorin wrote:
Fri Jan 11, 2019 8:55 am
So far the only place I can find actual contribution amounts is on the monthly statement, but it doesn't list what year they are for, and I dont want to wait till February to adjust my current years contributions. I have talked/emailed with fidelity and so far they tell me to look at the transfer page, all that shows is the yearly maximums, not how much I have contributed so far. The second person told me that I should look at my activity, and since it says current year its 2019(The one I initiated on the 31st, and picked 2018 year), I don't think he is correct..but I have no way to see.

Has anyone found anywhere that shows this information? Maybe the NetBenefitits HSA Summary Page link that doesn't work is suppose to have that...
My statement does show the year:
Image

I think you may just have to wait and see what it shows when you get your Feb. statement? You do know that have until April 15 to make up the $20 for 2018, if they do apply it to 2019.

If it were me, I'd actually wait for the official 1099-SA, rather than risk over contributing by $20. I am doing something like that over a matter of $30 related to my previous HSA. I'm not too worried about a small contribution like that being delayed by couple months.
press on, regardless - John C. Bogle

lowlight21
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by lowlight21 » Fri Jan 11, 2019 2:27 pm

For those who have employer sponsored HSA accounts where company and individual contributions are sent, what is your plan for integrating a Fidelity account? For example, my mega corp HSA is at Health Equity, and I have both an Investment Account and 'Regular Account.' The 'Regular Account' is required to remain at a $1000 balance, and contributions pushing the balance above $1000 are automatically invested in my Investment Account. So, I could move the Investment Account balance to Fidelity to reduce fees, but my company and paycheck contributions will still flow to the Regular Account. Are people transferring funds from their employer HSA to Fidelity on a schedule? Quarterly? Is that the right way to think about integrating Fidelity into my HSA strategy?

JustinR
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by JustinR » Fri Jan 11, 2019 3:42 pm

lowlight21 wrote:
Fri Jan 11, 2019 2:27 pm
For those who have employer sponsored HSA accounts where company and individual contributions are sent, what is your plan for integrating a Fidelity account? For example, my mega corp HSA is at Health Equity, and I have both an Investment Account and 'Regular Account.' The 'Regular Account' is required to remain at a $1000 balance, and contributions pushing the balance above $1000 are automatically invested in my Investment Account. So, I could move the Investment Account balance to Fidelity to reduce fees, but my company and paycheck contributions will still flow to the Regular Account. Are people transferring funds from their employer HSA to Fidelity on a schedule? Quarterly? Is that the right way to think about integrating Fidelity into my HSA strategy?
Just do a transfer once a year, after all your HSA contributions are in. It's too much hassle otherwise.

Stop investing in your company HSA. Just keep it all cash until you transfer it all at once to Fidelity.

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Davinci
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Davinci » Fri Jan 11, 2019 10:52 pm

We attempted to get the status of your transfer from HEALTH EQUITY - HSA, but they indicated they will only release information regarding an account or transfer to you directly. Please contact HEALTH EQUITY - HSA at 866-346-5800 to verify the transfer is being processed, then contact Fidelity at 800-800-6890, option 1, 2 so we can update the transfer file.
Called Health Equity today and customer rep offered me a great deal. :? I was offered 3 months without an investment fee and only the monthly account fee and they will reimburse the $25 account closure fee. (Interesting correlation as my transfer has taken 3 months paying all fees with only cash in the account). I indicated that I actually preferred to proceed with the transfer to Fidelity and was told that they might transfer my money in 7-14 days, otherwise if money was not transferred to call them back in 14 days. :annoyed

Called Fidelity and they indicated that they are seeing Health Equity hold the money for 14 days and then transfer after customer calls them.

To summarize, I initiated the transfer request on 11/20:

1. Health equity refused first attempt indicated that my money was still invested (Not true sold on 11/20).
2. Health equity refused the transfer request to Fidelity indicating that they would only talk to me.
3. Health equity charged me 2 months of investing account fee with only cash in account ($40), 2 months of account fees ($10) as 1 month was $7.50 and other $2.50 and $25 account closure fee. Total cost of transfer $75 and a lot of wasted time (~3 months).

Hope other transfers to Fidelity are going smother than this.

Cheers,
" Simplicity is the ultimate sophistication" Leonardo Da Vinci.

cas
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by cas » Sat Jan 12, 2019 8:26 am

Davinci wrote:
Fri Jan 11, 2019 10:52 pm
To summarize, I initiated the transfer request on 11/20:

1. Health equity refused first attempt indicated that my money was still invested (Not true sold on 11/20).
2. Health equity refused the transfer request to Fidelity indicating that they would only talk to me.
3. Health equity charged me 2 months of investing account fee with only cash in account ($40), 2 months of account fees ($10) as 1 month was $7.50 and other $2.50 and $25 account closure fee. Total cost of transfer $75 and a lot of wasted time (~3 months).
If I understand your previous comment correctly, seems like there is actually an item 2.5 in there:

2.5 When I made the required call to Health Equity, they put a salesman on the line to attempt to convince me to abandon the transfer.

:shock:

Earlier in this thread, there was some discussion on how there were likely emergency meetings going on at all the major HSA providers to discuss the Fidelity HSA developments. Who knows what really went on, but I'm picturing this:

Lively's meeting: "Let's drop all our fees to $0 and match Fidelity!"

HealthEquity's meeting: "Let's require that the customer have their arm twisted by one of our salesmen before they can leave!"

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jeffyscott
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by jeffyscott » Sat Jan 12, 2019 8:40 am

Davinci wrote:
Fri Jan 11, 2019 10:52 pm
To summarize, I initiated the transfer request on 11/20:

1. Health equity refused first attempt indicated that my money was still invested (Not true sold on 11/20).
2. Health equity refused the transfer request to Fidelity indicating that they would only talk to me.
3. Health equity charged me 2 months of investing account fee with only cash in account ($40), 2 months of account fees ($10) as 1 month was $7.50 and other $2.50 and $25 account closure fee. Total cost of transfer $75 and a lot of wasted time (~3 months).

Hope other transfers to Fidelity are going smother than this.

Cheers,
I think you may be the record holder. I thought it was me, but I started the same day and completed about 10 days ago. Though, I think you are "only" at ~2 months (so far), not 3.

My delays were mostly caused by lack of communication/information, not the former HSA desperately trying to hold on to accounts as yours seems to be.
press on, regardless - John C. Bogle

chazas
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by chazas » Sat Jan 12, 2019 10:19 am

My BCBS HSA was administered by Acclaris. My firm decided to move to PNC and either staying or moving would have entailed fees. I started trying to gather information on 10/31 when they announced and started trying to move to Fidelity as soon as I could. There was no way to talk to Acclaris directly, only via BCBS folks at a call center. Acclaris refused to transfer investments, made me liquidate to cash. Acclaris then ignored two sets of paperwork from Fidelity and then a set that they made me overnight directly to them. My account was transferred to PNC anyway. With intervention from HR I sent another set of paperwork to PNC and they closed my account last week, but I’m still waiting for Fidelity to receive the funds. This has been ridiculously complicated and wasteful. Hopefully it will all be resolved soon.

Corgitodd
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Corgitodd » Sat Jan 12, 2019 12:19 pm

Has anyone transferred a Health Savings Authority (Old National Bank)HSA to Fidelity?

lstone19
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by lstone19 » Sun Jan 13, 2019 9:52 am

lstone19 wrote:
Fri Jan 11, 2019 9:28 am
I've been doing the opposite, sold all in TDA and moved back to HSAbank. After selling all and transferring back to HSAbank in mid-December, I had to wait until the beginning of this month for final dividend to post (money was in a declare daily, pay monthly bond fund). Transferred that cash last week, two days ago TDA account dropped off my HSAbank screen.

Meanwhile, Fidelity says they sent transfer form to HSAbank on 12/28 with estimated completion today but nothing has happened at HSAbank. Not sure if TDA dropping off HSAbank screen is because they're starting to process the transfer or because of zero balance (but if the latter, why did it not happen last month - the account sat two weeks with a zero balance and I'm not convinced HSAbank's systems are smart enough to know there was a dividend payment pending).
Update: HSAbank now shows the transfer (less their $25 fee) as having occurred yesterday (Saturday 1/12) so 15 days from when Fidelity says they mailed the form. So hopefully I will see the money in Fidelity by the end of the week.

ninjab
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by ninjab » Sun Jan 13, 2019 10:08 am

Update for my TDA Lively txf, $50 appeared in my account a week after the initial txf went through. I had emailed Lively politely asking if they or TDA could refund the $50 txf fee and it looks like one of them did (would guess TDA as I would think if it was Lively it would be in my regular account). This money moved over to Fidelity a few days later without me doing anything. So all complete now.

Question for everyone, does Fidelity count transactions in HSAs as wash sales automatically if a wash with your taxable account with them? I am of the opinion that HSA is most likely not included in wash sales, but not sure what Fidelity automatically does.

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Equitius
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Equitius » Sun Jan 13, 2019 3:12 pm

I am new to having an individual HSA, one I started at Fidelity this month after losing my job last fall and transferring that HSA from Bank of America (BoA). My new Fidelity HSA should receive that money transferred from BoA this week.

My question relates to my now current employer HSA.

Am I able to transfer money from the current employer HSA (Anthem/PNC Bank) to my individual Fidelity HSA, or do I have to wait until I am no longer employed by the current employer to do so? I am hoping I can do so, as I can avoid a $2.50 per month fee by PNC Bank for investing my own money.

Thank you.

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by jhfenton » Sun Jan 13, 2019 3:24 pm

Equitius wrote:
Sun Jan 13, 2019 3:12 pm
Am I able to transfer money from the current employer HSA (Anthem/PNC Bank) to my individual Fidelity HSA, or do I have to wait until I am no longer employed by the current employer to do so? I am hoping I can do so, as I can avoid a $2.50 per month fee by PNC Bank for investing my own money.
Unlike a 401(k), you are free to move your HSA money whenever you want. But many custodians charge a transfer fee to do a trustee-to-trustee transfer, so some folks wait and do a once-per-12-months rollover by taking a distribution and depositing it into the new HSA within 60 days.

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Equitius
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Equitius » Sun Jan 13, 2019 3:36 pm

jhfenton wrote:
Sun Jan 13, 2019 3:24 pm
Unlike a 401(k), you are free to move your HSA money whenever you want. But many custodians charge a transfer fee to do a trustee-to-trustee transfer, so some folks wait and do a once-per-12-months rollover by taking a distribution and depositing it into the new HSA within 60 days.
Thanks for the answer. I thought this might be the right one. I will need to check with PNC Bank on their fees for the trustee-to-trustee transfer.

I guess now I need to figure out if I should eat PNC Bank's $2.50/month and invest the money before rolling it over once a year, or just hold it in cash for the pittance interest I get, which is truly pathetic.

Any suggestions here?

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hoppy08520
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by hoppy08520 » Sun Jan 13, 2019 3:50 pm

Equitius wrote:
Sun Jan 13, 2019 3:36 pm
jhfenton wrote:
Sun Jan 13, 2019 3:24 pm
Unlike a 401(k), you are free to move your HSA money whenever you want. But many custodians charge a transfer fee to do a trustee-to-trustee transfer, so some folks wait and do a once-per-12-months rollover by taking a distribution and depositing it into the new HSA within 60 days.
Thanks for the answer. I thought this might be the right one. I will need to check with PNC Bank on their fees for the trustee-to-trustee transfer.

I guess now I need to figure out if I should eat PNC Bank's $2.50/month and invest the money before rolling it over once a year, or just hold it in cash for the pittance interest I get, which is truly pathetic.

Any suggestions here?
What is the cash minimum balance to avoid the $2.50/month fee? Or is this fee assessed if you use the investment platform?

The way to answer this question is to model out a 12-month period where you can either invest the HSA funds and pay $2.50/month, or suffer a cash drag that whole time. A fair comparison might be a bond fund with a 2% yield. I would think the two scenarios are fairly close.

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Equitius
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Equitius » Sun Jan 13, 2019 4:50 pm

hoppy08520 wrote:
Sun Jan 13, 2019 3:50 pm
What is the cash minimum balance to avoid the $2.50/month fee? Or is this fee assessed if you use the investment platform?
The fee is assessed anytime I invest any money beyond the $1K minimum in cash required by PNC Bank. Maybe I am being too sensitive? Is $30 a year worth quibbling about? (Probably not, but I despise bank fees.)

I love how the bank gives me cents on thousands kept in HSA cash. That's what truly irks me.

I will be maxing out the HSA this year ($3.5K) regardless.

schwab
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by schwab » Mon Jan 14, 2019 6:43 pm

I'm in a weird situation and unsure how to proceed. Advice gladly accepted :)

Prior HSA was with HSA Bank, transferring to Fidelity.

Here's the process I followed
1) Transferred all cash from HSA Bank to TDA (~10 Dec)
2) Requested transfer in kind via Fidelity of TDA Account (Did NOT liquidate assets) (~12 Dec)
3) Transfer took place within ~10 days total, Can no longer access TDA account online (~24 Dec)
4) Called HSA Bank to close the account, no issues (~29 Dec)
5) Received a letter in the mail today (14 Jan) from HSA Bank that I have a negative account balance and they'll liquidate my investments if I don't transfer in $2.94 to cover the negative balance.
6) When I log in to HSA Bank now, I have a ($3.00) balance in my HSA Bank Cash account, and an $80 balance shown in my TDA account (via the HSA Bank interface - I can't see it when I log in to TDA directly)

So where do I go from here? Call Fidelity to ask them to pick up the remainder of the TDA account and then call HSA Bank to tell them I closed the account last month and to reverse the fee?

Thanks for your guidance!

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hoppy08520
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by hoppy08520 » Mon Jan 14, 2019 8:31 pm

schwab wrote:
Mon Jan 14, 2019 6:43 pm
I'm in a weird situation and unsure how to proceed. Advice gladly accepted :)

Prior HSA was with HSA Bank, transferring to Fidelity.

Here's the process I followed
1) Transferred all cash from HSA Bank to TDA (~10 Dec)
2) Requested transfer in kind via Fidelity of TDA Account (Did NOT liquidate assets) (~12 Dec)
3) Transfer took place within ~10 days total, Can no longer access TDA account online (~24 Dec)
4) Called HSA Bank to close the account, no issues (~29 Dec)
5) Received a letter in the mail today (14 Jan) from HSA Bank that I have a negative account balance and they'll liquidate my investments if I don't transfer in $2.94 to cover the negative balance.
6) When I log in to HSA Bank now, I have a ($3.00) balance in my HSA Bank Cash account, and an $80 balance shown in my TDA account (via the HSA Bank interface - I can't see it when I log in to TDA directly)

So where do I go from here? Call Fidelity to ask them to pick up the remainder of the TDA account and then call HSA Bank to tell them I closed the account last month and to reverse the fee?

Thanks for your guidance!
I’m guessing you got a dividend payout that happened midstream during the transfer. I’d call Fidelity and ask what to do. Probably a second transfer. Then proceed accordingly with HSA Bank.

EMDW
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by EMDW » Mon Jan 14, 2019 8:40 pm

My HSA from Lively/TD was transfered to Fidelity; it holds SPTM ETF. I will like to sell this and buy a mutual fund instead, "Fidelity® ZERO Total Market Index Fund (FZROX)", to approximate the Vanguard Total Stock Market index admiral in my Roth IRA (VTSAX). Are there any negatives to this move? Thanks.

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by ninjab » Mon Jan 14, 2019 9:30 pm

EMDW wrote:
Mon Jan 14, 2019 8:40 pm
My HSA from Lively/TD was transfered to Fidelity; it holds SPTM ETF. I will like to sell this and buy a mutual fund instead, "Fidelity® ZERO Total Market Index Fund (FZROX)", to approximate the Vanguard Total Stock Market index admiral in my Roth IRA (VTSAX). Are there any negatives to this move? Thanks.
$4.95 trade fee. SPTM seems perfectly fine too, ER is like 0.03%. I've just left mine in SPTM and new money in FZROX, but maybe will switch it as well if OCD gets ahold of me wanting to consolidate to 1 position.

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by ICMoney » Mon Jan 14, 2019 10:08 pm

Thanks to all who have documented their HSA transfers here. Thought I'd share mine in case others are transferring from UMB to Fidelity.

First, UMB cannot transfer in-kind. As a result, since I was going to need to sell the invested portion anyway, I decided to do an indirect rollover to Fidelity due to some of the transfer headaches expressed in this thread.

Day 1 - Sell order submitted online to UMB (Day 1)
Day 2 - Sell order completed by UMB (Day 2)
Day 5 (which was the next business day) - Reimbursement request of entire UMB HSA balance made online
Day 6 - UMB HSA balance deposited by ACH into my checking account
Day 6 - Check for HSA balance plus Fidelity Deposit Slip, with 60-day rollover box checked, sent via mail to Fidelity. The deposit slip was sent to me by a higher level Fidelity call center rep when I called to inquire if I could electronically transfer in the HSA funds. (I think they could only handle the indirect rollover via mail, fwiw it took 15 minutes on the phone to get someone who knew how to accomplish an indirect HSA rollover) I also included a letter of instruction to make it clear what I was trying to do. Deposit slip link: https://www.fidelity.com/bin-public/060 ... t-slip.pdf
Day 9 - HSA funds posted to Fidelity HSA, coded correctly as Rollover Cash Check Received

Fees paid to do all of this = $0. There would have been a transfer fee with UMB if I had done a trustee-to-trustee transfer.

Best,
ICM
Last edited by ICMoney on Tue Jan 15, 2019 4:12 pm, edited 1 time in total.

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by livesoft » Mon Jan 14, 2019 10:11 pm

EMDW wrote:
Mon Jan 14, 2019 8:40 pm
My HSA from Lively/TD was transfered to Fidelity; it holds SPTM ETF. I will like to sell this and buy a mutual fund instead, "Fidelity® ZERO Total Market Index Fund (FZROX)", to approximate the Vanguard Total Stock Market index admiral in my Roth IRA (VTSAX). Are there any negatives to this move? Thanks.
Seems OK to me. As noted, you pay a commission to sell SPTM.
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Davinci » Mon Jan 14, 2019 10:36 pm

HealthEquity's meeting: "Let's require that the customer have their arm twisted by one of our salesmen before they can leave!"
cas,

I think you are spot on! That is exactly what I experienced with emails, phone calls, delays, etc! :twisted:

Happy to report that my HSA funds are finally at Fidelity with a trade order for FZROX tomorrow! :D

I am glad that I do not have to deal with Health Equity ever again!

Good luck everyone on your transfers! I think I hold the record on duration and highest fees:
1) 65 days
2) $75

Cheers,
" Simplicity is the ultimate sophistication" Leonardo Da Vinci.

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by cas » Tue Jan 15, 2019 7:05 am

Davinci wrote:
Mon Jan 14, 2019 10:36 pm
HealthEquity's meeting: "Let's require that the customer have their arm twisted by one of our salesmen before they can leave!"
cas,

I think you are spot on! That is exactly what I experienced with emails, phone calls, delays, etc! :twisted:
[ . . .]

Good luck everyone on your transfers! I think I hold the record on duration and highest fees:
1) 65 days
2) $75
I hate to take the shine off your record, but we now have a report of a BenefitWallet HSA -> Fidelity HSA trustee->trustee transfer taking more than 6 months. (See posts starting at: viewtopic.php?t=269173#p4319183 )

I think you still have the record on fees, though.

Here's my updated list of imagined meetings:

Earlier in this thread, there was some discussion on how there were likely emergency meetings going on at all the major HSA providers to discuss the Fidelity HSA developments. Who knows what really went on, but I'm picturing this:

Lively's meeting: "Let's drop all our fees to $0 and match Fidelity!"

HealthEquity's meeting: "Let's require that the customer have their arm twisted by one of our salesmen before they can leave!"

BenefitWallet's meeting: "Why are we even having this meeting? 99% of customers will give up on moving their money elsewhere once they encounter our abysmal customer service and undocumented, weeks-long process for liquidating their investments. Just make all the customer service reps practice chanting 'The check is in the mail' before the start of every shift."

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by motorcyclesarecool » Tue Jan 15, 2019 7:54 am

I’m guessing that non-bh types doing cash-only HSAs are staying put. I’m also guessing that employer-sponsored HSAs (especially with an employer contribution and/or cafeteria plan payroll deductions) will be staying put for now. I’m interested to see what PayFlex/AETNA/CVS will do in response.
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.

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Spirit Rider » Tue Jan 15, 2019 9:25 am

Even if you just stick the money in a MMF, you are going to earn a substantially better interest rate than most HSA custodians.

Fidelity still charges $48/participant annually for employer sponsored plans. This is more than most HSA custodians and unless they were previously size restricted, there is less reason to change. Employers do not seem so concerned about the investment access fees that participants had to pay or their limited investment choices and higher ERs. Most were looking out solely for their bottom line and not what is best for their employees. Not that different from many 401k plans.

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by matto » Tue Jan 15, 2019 9:58 am

ICMoney wrote:
Mon Jan 14, 2019 10:08 pm
Day 5 (which was the next business day) - Disbursement request of entire UMB HSA balance made online
Day 6 - UMB HSA balance deposited by ACH into my checking account
Day 6 - Check for HSA balance plus Fidelity Deposit Slip, with 60-day rollover box checked, sent via mail to Fidelity. The deposit slip was sent to me by a higher level Fidelity call center rep when I called to inquire if I could electronically transfer in the HSA funds. (I think they could only handle the indirect rollover via mail, fwiw it took 15 minutes on the phone to get someone who knew how to accomplish an indirect HSA rollover) I also included a letter of instruction to make it clear what I was trying to do. Deposit slip link: https://www.fidelity.com/bin-public/060 ... t-slip.pdf
I also have a UMB HSA.

Sorry for the dumb question, but I want to make sure I'm doing things absolutely correctly with a 60 day rollover.

Is your Day 5 step really as simple as using their website: HSA > Request Reimbursement ?

Since I'm not technically 'reimbursing' anything, the wording of reimbursement vs disbursement is throwing me off.

Once I have the funds out I feel comfortable getting everything to Fidelity correctly. I want to make sure I'm using the correct way of getting funds out of the HSA so things are reported correctly.

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by niceguy7376 » Tue Jan 15, 2019 10:06 am

schwab wrote:
Mon Jan 14, 2019 6:43 pm
I'm in a weird situation and unsure how to proceed. Advice gladly accepted :)
5) Received a letter in the mail today (14 Jan) from HSA Bank that I have a negative account balance and they'll liquidate my investments if I don't transfer in $2.94 to cover the negative balance.
6) When I log in to HSA Bank now, I have a ($3.00) balance in my HSA Bank Cash account, and an $80 balance shown in my TDA account (via the HSA Bank interface - I can't see it when I log in to TDA directly)
After I did the TDA to Fido, I lost access to TDA. When i logged into HSA, it showed $75 in TDA. I called TDA and they said they received the dividends of $75 and that they already transferred it to Fido once again. I then called HSA and asked them to close it. There was $0.39 cents and they said they will gladly take it instead of the $25 closing fee.

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by lstone19 » Tue Jan 15, 2019 10:11 am

matto wrote:
Tue Jan 15, 2019 9:58 am
Sorry for the dumb question, but I want to make sure I'm doing things absolutely correctly with a 60 day rollover.

Is your Day 5 step really as simple as using their website: HSA > Request Reimbursement ?

Since I'm not technically 'reimbursing' anything, the wording of reimbursement vs disbursement is throwing me off.
Yes. A rollover is a qualified distribution (or whatever the precise language is). Many of the HSA custodians want you to think that a rollover is something special from their end and confuse you by asking you to provide information about what the distribution is for. The record-keeping responsibility is on you - not the custodian. All having you provide information about the distribution does is help you keep records but if you're closing that account, you're going to lose those records anyway. Keep your own records (at least for the same period you'd keep your tax return for that year).

When you do a rollover, you will file Form 8889 and list total distributions (line 14a - from 1099-SA), distributions rolled over (14b), and qualified medical expenses paid using distributions (15). As you can see, rollovers are simply subtracted from total distributions on YOUR tax return and nothing to do with anything the old custodian does.

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by cas » Tue Jan 15, 2019 10:50 am

lstone19 wrote:
Tue Jan 15, 2019 10:11 am
matto wrote:
Tue Jan 15, 2019 9:58 am
Sorry for the dumb question, but I want to make sure I'm doing things absolutely correctly with a 60 day rollover.

Is your Day 5 step really as simple as using their website: HSA > Request Reimbursement ?

Since I'm not technically 'reimbursing' anything, the wording of reimbursement vs disbursement is throwing me off.
Yes. A rollover is a qualified distribution (or whatever the precise language is). Many of the HSA custodians want you to think that a rollover is something special from their end and confuse you by asking you to provide information about what the distribution is for.
Yeah ... BenefitWallet has this notice prominently at the top of their "Reimburse Myself" page (bold added by me):
Important Note

Electronic payments will always be coded as a regular distribution and should not be used for trustee to trustee transfers, rollovers or excess contributions.
Reading what SpiritRider and others have written here (and starting to read tax forms, IRS publications, and tax code), my understanding is that the "should not be used for rollovers" part of that statement is WRONG. (I'll grant them the "should not be used for trustee to trustee transfers or excess contributions" part.)

My understanding is that having it coded as a regular distribution is exactly what you want the outgoing HSA provider to do, if you are attempting a 60-day-rollover.

Another potential issue on the "reimburse" method (via ACH or custodian check), however, is that some HSA vendors are (apparently) limiting the amount that can be transferred in one transfer, citing, variously, if I recall correctly, "security concerns" or "the Patriot Act". (If it was "the Patriot Act" I would think it would apply to all HSA custodians, which doesn't seem to be the case, but I have only a small sample from recent threads.) See this post: (viewtopic.php?t=266089#p4253596)
Bigger pain is [HSA Bank's] $2,500 / day limit to on-line distribution requests.
and this one (viewtopic.php?t=241923):
I tried and tried to get [BenefitWallet] to simply write a check payable to me, in the amount of my balance, but they wouldn't do it. They said it was because my balance was too high (around $35,000) and it was some sort of security precaution.
In any case ... important ... multiple reimbursements to get one's whole balance does not play well (plays toxically, in fact) with 60 day rollovers!!! See discussion here (make sure to read the whole thread and particularly make sure to read all the way down to where SpiritRider chimes in): viewtopic.php?t=266089

All that said, I, too, due to various foreseen snags with a trustee-to-trustee transfer, find myself being pushed towards a 60-day-rollover, which means getting my money out of the originating HSA (BenefitWallet) all in one go, one way or another.

- admittedly rapidly descending into HSA rollover/transfer paranoia, cas

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by ICMoney » Tue Jan 15, 2019 4:09 pm

matto wrote:
Tue Jan 15, 2019 9:58 am
ICMoney wrote:
Mon Jan 14, 2019 10:08 pm
Day 5 (which was the next business day) - Disbursement request of entire UMB HSA balance made online
Day 6 - UMB HSA balance deposited by ACH into my checking account
Day 6 - Check for HSA balance plus Fidelity Deposit Slip, with 60-day rollover box checked, sent via mail to Fidelity. The deposit slip was sent to me by a higher level Fidelity call center rep when I called to inquire if I could electronically transfer in the HSA funds. (I think they could only handle the indirect rollover via mail, fwiw it took 15 minutes on the phone to get someone who knew how to accomplish an indirect HSA rollover) I also included a letter of instruction to make it clear what I was trying to do. Deposit slip link: https://www.fidelity.com/bin-public/060 ... t-slip.pdf
I also have a UMB HSA.

Sorry for the dumb question, but I want to make sure I'm doing things absolutely correctly with a 60 day rollover.

Is your Day 5 step really as simple as using their website: HSA > Request Reimbursement ?

Since I'm not technically 'reimbursing' anything, the wording of reimbursement vs disbursement is throwing me off.

Once I have the funds out I feel comfortable getting everything to Fidelity correctly. I want to make sure I'm using the correct way of getting funds out of the HSA so things are reported correctly.
Yes, I requested reimbursement of my entire balance on UMB's website on Day 5 using Request Reimbursement - exactly as if I were reimbursing myself for a qualified medical expense. Seems like the other posters above confirmed this approach, but wanted to make sure I responded as well. I also updated the wording in my prior post to make it clearer (reimbursement instead of disbursement), thanks for pointing out that clarification.

Best, ICM

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by LadyGeek » Tue Jan 15, 2019 4:24 pm

^^^ Next up. My employer's HSA is also with UMB. I'm new to HSAs and am just starting out. Does this distribution process apply to a cash account?

I don't have any confirmation yet, but my employer may not cover the UMB administrative fees. If the fees are not covered, I'm going to move the account to Fidelity.

One aspect of your employer not taking the contribution from your salary is that your pre-tax income will be that much higher - my employer will take out more taxes than needed. So... the IRS Withholding Calculator will be used to adjust my withholding.

For tax filing, IRS Form 8889 is used to report HSA contributions, which are then subtracted as an adjustment to income on Form 1040 Schedule 1, line 25.
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Big Dog » Tue Jan 15, 2019 4:49 pm

One aspect of your employer not taking the contribution from your salary is that your pre-tax income will be that much higher - my employer will take out more taxes than needed. So... the IRS Withholding Calculator will be used to adjust my withholding.
The larger aspect is FICA and FUTA. (Note, the handling of an HSA is different than a 401k wrt to FICA & FUTA as the pretax HSA is exempt from those taxes, but a pretax 401k is not.)

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by ICMoney » Tue Jan 15, 2019 5:43 pm

LadyGeek wrote:
Tue Jan 15, 2019 4:24 pm
^^^ Next up. My employer's HSA is also with UMB. I'm new to HSAs and am just starting out. Does this distribution process apply to a cash account?

I don't have any confirmation yet, but my employer may not cover the UMB administrative fees. If the fees are not covered, I'm going to move the account to Fidelity.
My UMB HSA had both a HSA cash account and a HSA Saver investment account. When I sold my investment from HSA Saver, UMB deposited the sale proceeds directly into my HSA cash account. The cash account is where I requested reimbursement from (Day 5 from my previous post). You cannot request reimbursement from the HSA Saver investment account and UMB can't transfer in kind from HSA Saver per my phone call with them- I was required to liquidate the investment to rollover/reimburse, and would also have had to liquidate if I would have done a trustee to trustee transfer.

My experience with HSA fees at UMB was a $3/month investment fee (only if you chose to invest), and a $2.50/month admin fee for balances in the cash account under $3000. My former employer covered the $2.50/month admin fee while employed, but not the $3/month investment fee.

Best,
ICM

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Bfwolf » Tue Jan 15, 2019 7:51 pm

afatcat wrote:
Fri Jan 11, 2019 9:14 am

I moved cash to TDA and then transferred in kind (ETFs and cash) to Fidelity, and had no fee charged. It was all done online. I think transferring from HSA Bank would be a more manual process.

I had a -$2.50 balance from the Jan fee at HSA Bank when I called to close my account a few days ago, they said they would waive it and close, but the -$2.50 cash account still shows when I log in today though the TDA link is gone. Not sure if it's actually closed yet or not.
I had same experience. Zero'd out my HSA Bank cash account, transferred in kind everything from TDA to Fidelity, then closed the HSA Bank. I had a -$3.00 account balance by that time due to January fee. Lady on the phone said normally there's a $25 fee for closing account but since I have -$3.00 balance there will be no fee to close it.

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by LadyGeek » Tue Jan 15, 2019 7:59 pm

Big Dog wrote:
Tue Jan 15, 2019 4:49 pm
One aspect of your employer not taking the contribution from your salary is that your pre-tax income will be that much higher - my employer will take out more taxes than needed. So... the IRS Withholding Calculator will be used to adjust my withholding.
The larger aspect is FICA and FUTA. (Note, the handling of an HSA is different than a 401k wrt to FICA & FUTA as the pretax HSA is exempt from those taxes, but a pretax 401k is not.)
You're right. It's in the wiki, but the point didn't sink in until now: Health savings account (Tax considerations)

Removing the employer deduction will reduce my contribution by the amount of (the FICA and FUTA tax) - which is now classified as taxable income. This is a trade-off between additional taxes and the administrative fee.
ICMoney wrote:
Tue Jan 15, 2019 5:43 pm
My experience with HSA fees at UMB was a $3/month investment fee (only if you chose to invest), and a $2.50/month admin fee for balances in the cash account under $3000. My former employer covered the $2.50/month admin fee while employed, but not the $3/month investment fee.
I'm waiting for confirmation from my employer if the fee will be covered. A co-worker heard the admin fee may be $2.50/month or $3/month. We're not sure at this point.
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by matto » Tue Jan 15, 2019 8:25 pm

cas wrote:
Tue Jan 15, 2019 10:50 am
lstone19 wrote:
Tue Jan 15, 2019 10:11 am

Yes. A rollover is a qualified distribution (or whatever the precise language is). Many of the HSA custodians want you to think that a rollover is something special from their end and confuse you by asking you to provide information about what the distribution is for.
Yeah ... BenefitWallet has this notice prominently at the top of their "Reimburse Myself" page (bold added by me):

Reading what SpiritRider and others have written here (and starting to read tax forms, IRS publications, and tax code), my understanding is that the "should not be used for rollovers" part of that statement is WRONG. (I'll grant them the "should not be used for trustee to trustee transfers or excess contributions" part.)

My understanding is that having it coded as a regular distribution is exactly what you want the outgoing HSA provider to do, if you are attempting a 60-day-rollover.

All that said, I, too, due to various foreseen snags with a trustee-to-trustee transfer, find myself being pushed towards a 60-day-rollover, which means getting my money out of the originating HSA (BenefitWallet) all in one go, one way or another.

- admittedly rapidly descending into HSA rollover/transfer paranoia, cas
ICMoney wrote:
Tue Jan 15, 2019 4:09 pm
Yes, I requested reimbursement of my entire balance on UMB's website on Day 5 using Request Reimbursement - exactly as if I were reimbursing myself for a qualified medical expense. Seems like the other posters above confirmed this approach, but wanted to make sure I responded as well. I also updated the wording in my prior post to make it clearer (reimbursement instead of disbursement), thanks for pointing out that clarification.

Best, ICM
Thank you lstone19, cas, and ICMoney... I'm also deep into HSA paranoia but the above is very helpful.

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by ninjab » Tue Jan 15, 2019 10:14 pm

Am I correct that if we did a direct in kinda HSA tranfer we do not have to do any government paperwork for it?

Found this on IRS website which led me to believe so.
"If the taxpayers have their HSA funds transferred directly into another HSA in a trustee-to-trustee transfer, this is not considered a rollover. There is no limit on the number of these transfers. Do not include the amount transferred in income, deduct it as a contribution or include it as a distribution on Form 8889."

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by LadyGeek » Wed Jan 16, 2019 9:45 pm

LadyGeek wrote:
Tue Jan 15, 2019 7:59 pm
Big Dog wrote:
Tue Jan 15, 2019 4:49 pm
One aspect of your employer not taking the contribution from your salary is that your pre-tax income will be that much higher - my employer will take out more taxes than needed. So... the IRS Withholding Calculator will be used to adjust my withholding.
The larger aspect is FICA and FUTA. (Note, the handling of an HSA is different than a 401k wrt to FICA & FUTA as the pretax HSA is exempt from those taxes, but a pretax 401k is not.)
You're right. It's in the wiki, but the point didn't sink in until now: Health savings account (Tax considerations)

Removing the employer deduction will reduce my contribution by the amount of (the FICA and FUTA tax) - which is now classified as taxable income. This is a trade-off between additional taxes and the administrative fee.
I checked the IRS guidance and I am now confused. According to: Understanding Employment Taxes
Federal Unemployment (FUTA) Tax

...Employees do not pay this tax or have it withheld from their pay.
and Publication 15 (2019), (Circular E), Employer's Tax Guide
Health savings accounts and medical savings accounts.

...Employee contributions to their HSAs or MSAs through a payroll deduction plan must be included in wages and are subject to social security, Medicare, and FUTA taxes and income tax withholding...
Do my HSA contributions have FUTA withheld?

In any case, I can see how social security and Medicare taxes are withheld - the money is purely taxable income. My approach to trade the HSA admin fee vs. taxes may not be a strong point, as the contribution money comes from employment. Otherwise, I could not fund the HSA account.
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by JustinR » Wed Jan 16, 2019 10:15 pm

Mars9800 wrote:
Fri Jan 04, 2019 4:03 pm
Ended up checking just now and sure enough, Fidelity account shows the $50.01 posted 1/4/19 (approx 5 business days after the initial transfer posted).

All is good :D
Same thing happened to me. The $50 is at Fidelity now, but the Lively website still shows $50 in my closed TDA account and says "as of January 10"...it's almost a week now.

Is it the same for you? Does your Lively still show the $50?

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Lyrrad » Wed Jan 16, 2019 10:17 pm

LadyGeek wrote:
Wed Jan 16, 2019 9:45 pm
Health savings accounts and medical savings accounts.

...Employee contributions to their HSAs or MSAs through a payroll deduction plan must be included in wages and are subject to social security, Medicare, and FUTA taxes and income tax withholding...
Do my HSA contributions have FUTA withheld?

In any case, I can see how social security and Medicare taxes are withheld - the money is purely taxable income. My approach to trade the HSA admin fee vs. taxes may not be a strong point, as the contribution money comes from employment. Otherwise, I could not fund the HSA account.
I think the next sentence is the important one:
However, HSA contributions made under a salary reduction arrangement in a section 125 cafeteria plan aren't wages and aren't subject to employment taxes or withholding.
I'm able to make contributions under a cafeteria plan arrangement, so no FICA taxes are deducted or owed. It's reported in box 12 of the W-2 under code "W".

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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by LadyGeek » Wed Jan 16, 2019 10:22 pm

^^^ Thank you. This is my first year with an HSA, so I don't have a W-2 for reference.
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by lstone19 » Wed Jan 16, 2019 10:31 pm

And to make things even more confusing, contributions you make via a cafeteria plan get reported as employER contributions. Causes no end of confusion for first-timers.

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