Rumor mill - Fidelity starting individual HSA's Nov. 15th [2018]

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

Post by danaht » Thu Feb 07, 2019 8:37 am

EquityForAll wrote:
Wed Feb 06, 2019 11:25 am
For those who initiated a full transfer of assets from TD Ameritrade (either with Lively or HSA Bank) to Fidelity, was the transfer automatically in-kind (full shares transferred over with fractional shares liquidated to cash first)? Was curious to see if anyone shifting assets from TDAM > Fidelity came across any unpleasant surprises during their online transfer.
It only took a week for me to to transfer from TD Ameritrade (HSA Bank) to Fidelity. Once I had all my cash moved from HSA Bank to TD Ameritrade - I initiated the full transfer via Fidelity's online form (using TD Ameritrade). TD Ameritrade did not charge me any fees to do the transfer. I have another account at TD Ameritrade - so that might be the reason why no fee was charged. It was a very easy process and all my ETFs + cash are all at Fidelity now.

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

Post by oldcomputerguy » Thu Feb 07, 2019 8:56 am

Opened a new HSA at Fidelity last night, could not have been easier.

Initially, it looked as if I would have to fill out and send in the PDF (paper) application form. However, when I googled around a bit for "open Fidelity HSA", it took me to this page. First question was, "are you already a Fidelity customer?" I have some accounts already at Fidelity, so once I logged in, the system pulled in all my existing information, which made the process much easier. Five minutes later, I had the HSA opened, my B&M checking account connected, and the initial funding transfer entered.
"I’ve come around to this: If you’re dumb, surround yourself with smart people; and if you’re smart, surround yourself with smart people who disagree with you." (Aaron Sorkin)

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

Post by afatcat » Thu Feb 07, 2019 9:26 am

Cpadave wrote:
Thu Feb 07, 2019 7:38 am
So I followed the comments here and requested a transfer from HSA Bank to Fidelity. I had 5K cash in hsa bank and small amount in TD Ameritrade in one ETF. I opened the Fidelity account. I transferred all the cash from hsa bank into TD and sold the one etf( I know that I didn't have to do that). I had to either mail or drop off the transfer forms at a Fidelity office, which I did. The total process took about 9 days. Today all the funds are at Fidelity. So far neither TD or HSA Bank has taken out any fee to close the account. I do have other account with TD, so maybe they decided not to. I checked my HSA Bank and it shows a -$3 (monthly fee below min balance) . Do I call them, email them or just ignore it to close HSA Bank for good? Thanks
I had a -$2.50 balance from the TDA fee when I called to close HSA Bank on 1/7 (I had to wait for residual dividends to get swept to Fidelity). They said they would waive the fee and close. They then sent a letter dated 1/7 that said I need to add money to the account within 30 days or they would close the account. Today, I can still log in and access the account and the -$2.50 is there. So at this point I'm just waiting/hoping that they will act on their letter.

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

Post by Cpadave » Thu Feb 07, 2019 10:11 am

Thanks. I will wait few days and give them a call too. I will ask them to close the account. I don't know if they can come after me for the fee afterward. I think they can only take the money out of hsa contributions. If this part of the process goes as smooth as the actual transfer, I be happy. I just hated the fact that I had to keep 5K cash not earning much and the accounts were split between two places.

b0B
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by b0B » Sat Feb 09, 2019 5:08 pm

Further HSA to Fidelity HSA (direct transfer) took almost two months.

I'm about to try HealthEquity HSA to Fidelity HSA. Any thoughts whether to do direct transfer, or whether rollover is better? HealthEquity is my employer HSA that contributions must go to (I lump in once per year), so I'd be transferring or rolloverring once per year.

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

Post by EquityForAll » Sun Feb 10, 2019 1:06 pm

danaht wrote:
Thu Feb 07, 2019 8:37 am
It only took a week for me to to transfer from TD Ameritrade (HSA Bank) to Fidelity. Once I had all my cash moved from HSA Bank to TD Ameritrade - I initiated the full transfer via Fidelity's online form (using TD Ameritrade). TD Ameritrade did not charge me any fees to do the transfer. I have another account at TD Ameritrade - so that might be the reason why no fee was charged. It was a very easy process and all my ETFs + cash are all at Fidelity now.
Thanks, danaht. That's good to know, I've gone ahead and initiated a transfer from TD to Fidelity. Will report back when it's completed in case it's useful to others.

GibsonES335
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by GibsonES335 » Sun Feb 10, 2019 2:33 pm

Question for those transferring Health Savings Administrators > Fidelity. When I use the Fidelity online transfer tool and it asks me to type the name of the company I will be transferring from, it has an option for "Health Savings Administration". Is that the same as Health Savings Administrators? Or should I cross it out and manually type the latter?

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

Post by EquityForAll » Wed Feb 20, 2019 12:50 pm

Finally completed my transfer from TD Ameritrade (Lively) to Fidelity and wanted to add another data point here for anyone considering the jump.

2/4: Opened the new Fidelity HSA account online in minutes; initiated the TDA transfer on Fidelity's site (after-hours); Fidelity's transfer tracker estimated a completion date of 2/11
2/7: Application processed by Fidelity and forwarded to TDA for review; revised completion date of 2/14
2/13: TDA called me to confirm that the transfer request was approved but I would need to re-initiate the transfer request a second time from Fidelity's side (odd but something to be aware of); called Fidelity to reprocess the request; request sent same-day to TDA; revised completion date of 2/21
2/14: Locked out of TDA online account even though TDA assured me that it wouldn't be closed—so keep that in mind if you think you'll still want access for any reason such as downloading statements, etc.—do this before you initiate your transfer
2/18: President's Day
2/20: Assets appear in Fidelity HSA; tranfer completed

So, in all, about 11 business days from start to finish and a relatively painless process though it did take longer than expected based on other Lively/TDA transfers mentioned elsewhere in this thread. Shares were transferred in-kind via the ACATS system with fractional shares liquidated to cash. No need to contact Lively unless you want to fully close your account there.

If you're opening a new HSA for the purposes of treating it as another investment account, there's no doubt that Fidelity's the way to go (especially given that they're introducing even more no-fee iShares ETFs next week). Cash transfers into the Fidelity account are instantly processed and funds are available for trading (same-day) vs. the painfully circuitous, multi-day route that Lively uses: bank account > Lively > TDA. If, however, you plan on using your HSA to actually pay medical expenses, Lively might be more useful with their tracking/document locker features. Customer service for both Lively and Fidelity are top-notch. Fidelity's HSA customer service: (800) 544-3716

EDIT: There was no account transfer/closure fee from Lively nor TDA.
Last edited by EquityForAll on Wed Feb 20, 2019 1:05 pm, edited 1 time in total.

DrGoogle2017
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by DrGoogle2017 » Wed Feb 20, 2019 12:55 pm

Mine still has not transferred yet, started Feb 05, still stuck in stage 2, should I call HSA bank and find out why they are so slow?

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

Post by EquityForAll » Wed Feb 20, 2019 1:03 pm

DrGoogle2017 wrote:
Wed Feb 20, 2019 12:55 pm
Mine still has not transferred yet, started Feb 05, still stuck in stage 2, should I call HSA bank and find out why they are so slow?
That's probably a good idea.

From my experience, Fidelity was very proactive with how they handled the transfer details. All delays were the result of TDA, in my case, and I suspect these HSA custodians are going to start dragging the process out if they're increasingly hemorrhaging clients to Fidelity.

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

Post by cookymonster » Wed Feb 20, 2019 1:03 pm

I've transferred accounts from Health Equity and Saturna. Health Equity was MUCH slower, took exactly a month. Saturna took about two weeks. I successfully got my account closing fee reduced from $75 to $35. This is because within the Pershing platform is lists the account closing fee as $35. I called and disputed this with one of the managers there before they gave in.

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

Post by strbrd » Wed Feb 20, 2019 1:23 pm


DrGoogle2017 wrote: ↑
Wed Feb 20, 2019 1:55 pm
Mine still has not transferred yet, started Feb 05, still stuck in stage 2, should I call HSA bank and find out why they are so slow?
I called Fidelity when their Transfer Tracker said my HSA Bank transfer was stuck and they informed me that when funds are held at a separate brokerage from the underlying HSA account, the brokerage needs a "release letter" from the underlying account. At TDA after a couple of days, I got a message (not a call) saying my "account was eligible for transfer." Which I assume means they got the release letter. When I told Fidelity about this message, they told me they would send the transfer request again, and it now seems to be un-stuck, with a new estimated completion date another week out.

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

Post by HenryPorter » Wed Feb 20, 2019 1:48 pm

I want to do an indirect transfer of an old HSA to Fidelity. I linked a bank account last year to the old HSA and was able to do contributions to it. I imagine I can transfer money out of the HSA into the bank account. How do I send the money to Fidelity without it coding it as a 2018 or 2019 contribution? The reason I want to do an indirect transfer is that I might have to do another HSA transfer before next February if I leave my job and choose to not keep the current HSA. The old HSA is charging me $2.50 a month right now whereas the current HSA with my employer has monthly fees waived.

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

Post by ICMoney » Wed Feb 20, 2019 1:59 pm

HenryPorter wrote:
Wed Feb 20, 2019 1:48 pm
I want to do an indirect transfer of an old HSA to Fidelity. I linked a bank account last year to the old HSA and was able to do contributions to it. I imagine I can transfer money out of the HSA into the bank account. How do I send the money to Fidelity without it coding it as a 2018 or 2019 contribution? The reason I want to do an indirect transfer is that I might have to do another HSA transfer before next February if I leave my job and choose to not keep the current HSA. The old HSA is charging me $2.50 a month right now whereas the current HSA with my employer has monthly fees waived.
On the deposit form you will mail to Fidelity with your indirect rollover check, there is a 60 day rollover box to check to ensure it is coded as a rollover and not a contribution. Find my original post in this thread if you like (viewtopic.php?f=10&t=263661&p=4320581#p4320581) where I have a link to the Fidelity deposit form they requested I use with my indirect rollover check. Good luck!

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

Post by Admiral Fun » Wed Feb 20, 2019 8:36 pm

Requested transfer from Optum Bank to Fidelity on 1/13. As of 2/20 the money has left optum but not yet arrived at Fidelity. Horrendously slow.

DrGoogle2017
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by DrGoogle2017 » Wed Feb 20, 2019 8:52 pm

strbrd wrote:
Wed Feb 20, 2019 1:23 pm

DrGoogle2017 wrote: ↑
Wed Feb 20, 2019 1:55 pm
Mine still has not transferred yet, started Feb 05, still stuck in stage 2, should I call HSA bank and find out why they are so slow?
I called Fidelity when their Transfer Tracker said my HSA Bank transfer was stuck and they informed me that when funds are held at a separate brokerage from the underlying HSA account, the brokerage needs a "release letter" from the underlying account. At TDA after a couple of days, I got a message (not a call) saying my "account was eligible for transfer." Which I assume means they got the release letter. When I told Fidelity about this message, they told me they would send the transfer request again, and it now seems to be un-stuck, with a new estimated completion date another week out.
Mine is at HSA bank. I have just cash. I will call them tomorrow.

DrGoogle2017
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by DrGoogle2017 » Thu Feb 21, 2019 1:58 pm

I called today and HSA Bank has no record of my transfer request. Then I asked if I can send them the form myself and they said I could email them. Let’s hope this works. I’m sure whichever gets there sooner is the one they process because it’s an identical form I got from Fidelity.

ERguy101
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by ERguy101 » Thu Feb 21, 2019 3:33 pm

DrGoogle2017 wrote:
Wed Feb 20, 2019 12:55 pm
Mine still has not transferred yet, started Feb 05, still stuck in stage 2, should I call HSA bank and find out why they are so slow?
So, I was in same boat, from 2/3, with HSA Bank -> Fidelity. I called Fidelity yesterday, and they 3-way called HSA Bank with me. It turns out Fidelity sent the form to the "overnight mail" address for HSA bank instead of the "regular mail" address. HSA bank had not received anything as of yesterday from Fidelity, even though Fidelity sent it the first week of February.

HSA bank offered the options for Fidelity to email the form to askus@hsabank.com, which Fidelity explicitly refused for an unknown reason (and the form you can download from the Pending Transfer page on Fidelity will NOT count, because it is not signed by Fidelity.) HSA bank would not take a fax. The only solution was for Fidelity to re-mail the form to the right address for HSA bank.

My solution, I called HSA bank, and told them I want to do the 60 day rollover myself, so they emailed me a form, I printed it out, filled it out, and emailed it back to them. Apparently now HSA bank will send all my funds to my bank account, then I will mail a check and the deposit form (a one page PDF) from Fidelity for the 60 day rollover.

So, that may be going on with yours. Your best bet is to call HSA bank and ask if they have any of your forms.

ERguy101
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by ERguy101 » Thu Feb 21, 2019 3:36 pm

DrGoogle2017 wrote:
Thu Feb 21, 2019 1:58 pm
I called today and HSA Bank has no record of my transfer request. Then I asked if I can send them the form myself and they said I could email them. Let’s hope this works. I’m sure whichever gets there sooner is the one they process because it’s an identical form I got from Fidelity.
My first reply was before I read this message. If you downloaded the PDF from Fidelity on the Transfer Tracker page, it will not work, because the form is not signed by Fidelity. Also, if you just emailed them the form, you need to call HSA bank and tell them you emailed the form, etc. When you call them and tell them you emailed the form, they will look for it and start processing it (and then tell you its not valid because its not signed). If you just email askus@hsabank.com and don't follow up with a phone call, the email may never be answered.

DrGoogle2017
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by DrGoogle2017 » Thu Feb 21, 2019 4:40 pm

ERguy101 wrote:
Thu Feb 21, 2019 3:36 pm
DrGoogle2017 wrote:
Thu Feb 21, 2019 1:58 pm
I called today and HSA Bank has no record of my transfer request. Then I asked if I can send them the form myself and they said I could email them. Let’s hope this works. I’m sure whichever gets there sooner is the one they process because it’s an identical form I got from Fidelity.
My first reply was before I read this message. If you downloaded the PDF from Fidelity on the Transfer Tracker page, it will not work, because the form is not signed by Fidelity. Also, if you just emailed them the form, you need to call HSA bank and tell them you emailed the form, etc. When you call them and tell them you emailed the form, they will look for it and start processing it (and then tell you its not valid because its not signed). If you just email askus@hsabank.com and don't follow up with a phone call, the email may never be answered.
I signed the form, I think Fidelity only filled out the information. HSA guy said to email HSAFORM@hsabank.com. That’s what I did. I will call them tomorrow to find out if anything is wrong with the form.

Edit to add, I looked at the form again, I don’t see where Fidelity should sign the form, only my signature was required.

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

Post by DippityDoo » Fri Feb 22, 2019 2:35 pm

EquityForAll wrote:
Wed Feb 20, 2019 12:50 pm
EDIT: There was no account transfer/closure fee from Lively nor TDA.
My experience wasn't as positive as yours. It cost me $100 in closing fees to make the transfer from Lively to Fido. I got hit with TDA's $50 closure fee, which they deducted from what they transferred to Fidelity. I (stupidly!) left $50 in my Lively account to avoid their $25 closure fee for accounts open less than 1 year. Lively transferred that $50 to TDA to cover a -$50 balance that appeared at TDA after my TDA account (all cash) was transferred to Fidelity. I spoke with TDA because I thought they had charged me the closing fee twice. According to TDA, they returned the $50 Lively had sent them back to Lively. Lively never credited that $50 back to me even though they said I shouldn't have been charged any closing fees. In the end, Lively kept twice the amount I was trying to avoid paying. :oops:

If anyone is looking to transfer to Fido from Lively, please learn from my experience and empty your Lively account of all cash before you initiate the transfer.
2/27/19 edit: I still stand by this recommendation.

To be clear, I didn't have the impression that Lively was trying to cheat me. I had the sense that they are too clueless to handle a transfer properly.
2/27/19 edit: I received contradictory information from Lively that gave the impression that they didn't know what they were doing. As it turned out, the information from TDA was not entirely correct either. In the end, the account was settled properly. I was refunded the TDA account closure fee and Lively eventually transferred the remaining $50 cash.
Last edited by DippityDoo on Wed Feb 27, 2019 5:29 pm, edited 1 time in total.

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

Post by EquityForAll » Fri Feb 22, 2019 2:49 pm

DippityDoo wrote:
Fri Feb 22, 2019 2:35 pm
EquityForAll wrote:
Wed Feb 20, 2019 12:50 pm
EDIT: There was no account transfer/closure fee from Lively nor TDA.
My experience wasn't as positive as yours. It cost me $100 in closing fees to make the transfer from Lively to Fido. I got hit with TDA's $50 closure fee, which they deducted from what they transferred to Fidelity. I (stupidly!) left $50 in my Lively account to avoid their $25 closure fee for accounts open less than 1 year. Lively transferred that $50 to TDA to cover a -$50 balance that appeared at TDA after my TDA account (all cash) was transferred to Fidelity. I spoke with TDA because I thought they had charged me the closing fee twice. According to TDA, they returned the $50 Lively had sent them back to Lively. Lively never credited that $50 back to me even though they said I shouldn't have been charged any closing fees. In the end, Lively kept twice the amount I was trying to avoid paying. :oops:

If anyone is looking to transfer to Fido from Lively, please learn from my experience and empty your Lively account of all cash before you initiate the transfer.

To be clear, I didn't have the impression that Lively was trying to cheat me. I had the sense that they are too clueless to handle a transfer properly.
Sorry to hear that. You should try contacting Lively to have those fees reimbursed (as their site is adamant about not having any account-related fees). I suspect their transfer/closure process isn't quite perfected yet and my impression is that they're scrambling a bit in dealing with the recent uptick in outflows to Fidelity.

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

Post by DippityDoo » Fri Feb 22, 2019 3:10 pm


Sorry to hear that. You should try contacting Lively to have those fees reimbursed (as their site is adamant about not having any account-related fees). I suspect their transfer/closure process isn't quite perfected yet and my impression is that they're scrambling a bit in dealing with the recent uptick in outflows to Fidelity.
Thank you for your reply. FWIW, I had several e-mail exchanges with Lively (so I could have written documentation). And I did bring up the fact that their site claims not to have account fees. That correspondence left me with the impression that Lively is in over their head and ill-equipped to process transactions correctly. I finally stopped pursuing it because it wasn't worth $50 of my time to keep after them. I'm grateful to be finished with them and fully invested at Fido now.

2/27/19 edit: After I gave up in frustration, the final $50 was transferred. TDA verified that they charged me a $50 account closure fee but that fee was also refunded. In the end, I paid no fees for the account transfer. In trying to get to the bottom of things, I received information from both Lively and TDA that wasn't fully accurate. But the situation was made right in the end.
Last edited by DippityDoo on Wed Feb 27, 2019 5:41 pm, edited 1 time in total.

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

Post by mffl » Sat Feb 23, 2019 1:15 pm

Just thought I'd add my experience transferring from HSA Bank + TD Ameritrade to Fidelity.

1/28 - opened the HSA on Fidelity
2/7 - transferred ALL of my cash in the HSA Bank account to TD Ameritrade (the delay here was mine)
2/13 - started transfer from Fidelity's side, needed only an account number and an uploaded statement PDF, both of which I was able to get from the TD Ameritrade login, all of this was done online (could have probably started a couple days earlier, but you do need to allow a couple days for HSA Bank to get the money transferred TD Ameritrade). I did the transfer in kind, and told it to transfer the entire account.
2/19 - the cash and existing shares of VTI were available in my Fidelity HSA. I do NOT show as having paid a fee. The exact number of shares and cash that I had at TD Ameritrade were transferred to Fidelity. I also do not see a debit balance either in my Fidelity HSA account or on the transfer tracker as some other posters mentioned seeing.
2/23 - I called HSA Bank at 800-357-6246. I needed my SSN, DOB, and zip, but not an account number. I pressed the button to talk to a customer service rep when prompted, and simply asked to close my account. It was all done over the phone and took less than 5 mins (plus probably 10 mins on hold). I was told that there IS a $25 account closure fee, but that it's waived because my account had a zero balance. They said it would take a couple days to process, but it would require no further action on my part.

Anyway, for what it's worth, I've read most of this thread, and either I'm lucky or the process has been smoothed out substantially. For HSA Bank+TDA account holders, it's quick, smooth, and no fees. It is probably best to clear out the HSA Bank account to your TD Ameritrade account, then just do one transfer, initiated from Fidelity.

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

Post by marcopolo » Sat Feb 23, 2019 1:26 pm

mffl wrote:
Sat Feb 23, 2019 1:15 pm
Just thought I'd add my experience transferring from HSA Bank + TD Ameritrade to Fidelity.

1/28 - opened the HSA on Fidelity
2/7 - transferred ALL of my cash in the HSA Bank account to TD Ameritrade (the delay here was mine)
2/13 - started transfer from Fidelity's side, needed only an account number and an uploaded statement PDF, both of which I was able to get from the TD Ameritrade login, all of this was done online (could have probably started a couple days earlier, but you do need to allow a couple days for HSA Bank to get the money transferred TD Ameritrade). I did the transfer in kind, and told it to transfer the entire account.
2/19 - the cash and existing shares of VTI were available in my Fidelity HSA. I do NOT show as having paid a fee. The exact number of shares and cash that I had at TD Ameritrade were transferred to Fidelity. I also do not see a debit balance either in my Fidelity HSA account or on the transfer tracker as some other posters mentioned seeing.
2/23 - I called HSA Bank at 800-357-6246. I needed my SSN, DOB, and zip, but not an account number. I pressed the button to talk to a customer service rep when prompted, and simply asked to close my account. It was all done over the phone and took less than 5 mins (plus probably 10 mins on hold). I was told that there IS a $25 account closure fee, but that it's waived because my account had a zero balance. They said it would take a couple days to process, but it would require no further action on my part.

Anyway, for what it's worth, I've read most of this thread, and either I'm lucky or the process has been smoothed out substantially. For HSA Bank+TDA account holders, it's quick, smooth, and no fees. It is probably best to clear out the HSA Bank account to your TD Ameritrade account, then just do one transfer, initiated from Fidelity.

I went through this same process (just as seamless), except the last step.
What happens if i never call HSA Bank to close the account?
Once in a while you get shown the light, in the strangest of places if you look at it right.

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

Post by mffl » Sat Feb 23, 2019 4:02 pm

marcopolo wrote:
Sat Feb 23, 2019 1:26 pm
I went through this same process (just as seamless), except the last step.
What happens if i never call HSA Bank to close the account?
That's a good question. I thought about leaving mine open since it might be easier to get employer contributions that way (but probably doesn't matter, since I'm the owner, but all the employees are still using HSA Bank). Obviously they don't care if you hold a zero balance for a few weeks, and even waive the $25 account closure fee. But what happens if you leave it open for a year and accrue a bunch of fees with a zero balance and THEN fund it? Would they recover the fees due once there was money in the account to cover it? Not sure, so I just decided to make the account go away.

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

Post by marcopolo » Sat Feb 23, 2019 4:45 pm

mffl wrote:
Sat Feb 23, 2019 4:02 pm
marcopolo wrote:
Sat Feb 23, 2019 1:26 pm
I went through this same process (just as seamless), except the last step.
What happens if i never call HSA Bank to close the account?
That's a good question. I thought about leaving mine open since it might be easier to get employer contributions that way (but probably doesn't matter, since I'm the owner, but all the employees are still using HSA Bank). Obviously they don't care if you hold a zero balance for a few weeks, and even waive the $25 account closure fee. But what happens if you leave it open for a year and accrue a bunch of fees with a zero balance and THEN fund it? Would they recover the fees due once there was money in the account to cover it? Not sure, so I just decided to make the account go away.
That's a good point.
I will probably call them on Monday and close the account.
Thanks!
Once in a while you get shown the light, in the strangest of places if you look at it right.

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

Post by schrute » Sat Feb 23, 2019 9:52 pm

Can you have insurance at work (PPO) plan and also invest in the Fidelity HSA? I like the idea of socking away money for the future.

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

Post by drk » Sat Feb 23, 2019 9:55 pm

schrute wrote:
Sat Feb 23, 2019 9:52 pm
Can you have insurance at work (PPO) plan and also invest in the Fidelity HSA? I like the idea of socking away money for the future.
No. You can only open and contribute to an HSA if you are covered by an HSA-compatible high deductible health plan.

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

Post by schrute » Sat Feb 23, 2019 10:01 pm

drk wrote:
Sat Feb 23, 2019 9:55 pm
schrute wrote:
Sat Feb 23, 2019 9:52 pm
Can you have insurance at work (PPO) plan and also invest in the Fidelity HSA? I like the idea of socking away money for the future.
No. You can only open and contribute to an HSA if you are covered by an HSA-compatible high deductible health plan.
What if my work has an HSA but instead I picked PPO, I can’t make an individual Fidelity account and fund an HSA?

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

Post by drk » Sat Feb 23, 2019 10:02 pm

schrute wrote:
Sat Feb 23, 2019 10:01 pm
What if my work has an HSA but instead I picked PPO, I can’t make an individual Fidelity account and fund an HSA?
Correct: you cannot. You have to pick the HSA-compatible plan to be eligible to open and fund the HSA.

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

Post by FedGuy » Sun Feb 24, 2019 9:05 am

Does anyone know what interest rate Fidelity is paying on their HSA cash option? Most of my current HSA money is in cash at Adirondack, earning something like 1.0% interest per year. I already have accounts at Fidelity and would prefer to reduce the number of financial services providers I deal with by moving my HSA there, but I can't find anything about holding HSA funds in cash on Fidelity's HSA website.

Thanks!

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

Post by lstone19 » Sun Feb 24, 2019 9:33 am

FedGuy wrote:
Sun Feb 24, 2019 9:05 am
Does anyone know what interest rate Fidelity is paying on their HSA cash option? Most of my current HSA money is in cash at Adirondack, earning something like 1.0% interest per year. I already have accounts at Fidelity and would prefer to reduce the number of financial services providers I deal with by moving my HSA there, but I can't find anything about holding HSA funds in cash on Fidelity's HSA website.
The default cash option is only something like 0.35%. But there is nothing stopping you from putting the cash in one of their MM funds currently paying better than 2% - you just have to manually move the money.

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

Post by FedGuy » Mon Feb 25, 2019 7:56 am

Thanks, lstone19!

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

Post by Hub » Mon Feb 25, 2019 1:32 pm

schildi wrote:
Tue Dec 04, 2018 8:24 pm
Thanks everybody for the great information here!

My timeline wasn't as quick as some of the reports here, but it looks like I am getting there.
I am transferring from Elements (formerly Eli Lilly) CU, and the linked TDAmeritrade account. I went the long route by selling my positions at TDAmeritrade, then transferring to Elements CU, then doing the trustee to trustee transfer to Fidelity.
Here is my timeline:
- 11/16: sold positions at TDA and waited a couple days for settlement
- 11/20: submitted transfer paperwork in person at Fidelity Investment Center branch
- 11/21: transferred cash from TDA to Elements
- 11/27: paperwork shows as received by Fidelity online and transfer request submitted to Elements CU
- this is when I started talking to Elements CU, a person was assigned and I was able to email with her and call
- 12/04: received email from Elements that check was sent to Fidelity that day; HSA account at Elements has been removed online (but I still have access to my TDAmeritrade account, even though that should be closed automatically as well)
- now waiting for the check to get to Fidelity and be deposited, hopefully by EOW.

Fidelity estimates completion by 12/10, I am sure that it will happen by then, probably a little earlier.
No fees so far, beside the trading fee for selling at TDA ($6.95 per position)

While it took a little longer and being out of the market for a while is usually not desirable, it has worked out ok so far for me in this case. My main position (VTI) is now lower than when I sold, let's see what I end up with when everything is said and done .....
Thank you for this. I'm starting the exact same process now and intend to do it like you did so as to avoid the extra wire fee that sending funds to TDA from Elements would trigger. Looks like the transfer back to Elements is initiated from within the Elements internet banking ->Services ->HSA Portal. Took me a phone call to find that. No fee to move money that direction.

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

Post by TexTaxToo » Wed Feb 27, 2019 11:36 am

Last week, after reading this topic, I decided to open an HSA with Fidelity. Based on earlier posts, I expected this to be quick. When I started the process online, it asked me if I had other accounts with Fidelity, and asked for the userid and password. I do not have any personal accounts, but my 401k at work was with Fidelity, so I entered my NetBenefits userid and password (perhaps I shouldn't have?).

They pulled my information from that account (name, address, SSN, etc.) - I corrected a few things (it had my work email and phone), and continued through the application, accepting the terms and conditions. Eventually, I got to a page which basically said my application has been submitted and they would let me know in a couple days if it was accepted - though it could take up to two weeks. They did not ask me to establish a new userid/password, and no account number was provided.

It's been a week and I have heard nothing. There is nothing in my NetBenefits account indicating a new account or application. Note that I did not try to fund the account or do any transfers. This is just opening the account. Has anyone had a similar experience?

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

Post by Spirit Rider » Wed Feb 27, 2019 11:49 am

Did you call? That should be your first action, not posting here.

b0B
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by b0B » Wed Feb 27, 2019 2:37 pm

TexTaxToo wrote:
Wed Feb 27, 2019 11:36 am
Last week, after reading this topic, I decided to open an HSA with Fidelity. Based on earlier posts, I expected this to be quick. When I started the process online, it asked me if I had other accounts with Fidelity, and asked for the userid and password. I do not have any personal accounts, but my 401k at work was with Fidelity, so I entered my NetBenefits userid and password (perhaps I shouldn't have?).

They pulled my information from that account (name, address, SSN, etc.) - I corrected a few things (it had my work email and phone), and continued through the application, accepting the terms and conditions. Eventually, I got to a page which basically said my application has been submitted and they would let me know in a couple days if it was accepted - though it could take up to two weeks. They did not ask me to establish a new userid/password, and no account number was provided.

It's been a week and I have heard nothing. There is nothing in my NetBenefits account indicating a new account or application. Note that I did not try to fund the account or do any transfers. This is just opening the account. Has anyone had a similar experience?
I did exactly what you did, and the HSA was opened immediately.

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

Post by DippityDoo » Wed Feb 27, 2019 5:19 pm

I'm going to edit my posts above regarding my experience transferring from Lively to Fidelity. I have been refunded the closure fee ($50) from the TDA portion of the account and Lively transferred the remaining $50 cash. In the course of straightening things out, I received information from Lively and TDA that was contradictory. But in the end, I paid no account closure fees.

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

Post by schrute » Fri Mar 01, 2019 3:58 pm

drk wrote:
Sat Feb 23, 2019 10:02 pm
schrute wrote:
Sat Feb 23, 2019 10:01 pm
What if my work has an HSA but instead I picked PPO, I can’t make an individual Fidelity account and fund an HSA?
Correct: you cannot. You have to pick the HSA-compatible plan to be eligible to open and fund the HSA.
I guess I'm confused. How would Fidelity or the government know I have an HSA option at work and if I have an HSA option (where I am enrolled) why would I ever use the Fidelity option when I would just be using my workplace's?

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

Post by lstone19 » Fri Mar 01, 2019 4:06 pm

schrute wrote:
Fri Mar 01, 2019 3:58 pm
drk wrote:
Sat Feb 23, 2019 10:02 pm
schrute wrote:
Sat Feb 23, 2019 10:01 pm
What if my work has an HSA but instead I picked PPO, I can’t make an individual Fidelity account and fund an HSA?
Correct: you cannot. You have to pick the HSA-compatible plan to be eligible to open and fund the HSA.
I guess I'm confused. How would Fidelity or the government know I have an HSA option at work and if I have an HSA option (where I am enrolled) why would I ever use the Fidelity option when I would just be using my workplace's?
It's a matter of what's legal vs. what can be automatically detected. You must be covered by a qualifying HDHP to contribute to an HSA.

As for why you'd open a standalone account at Fidelity:
- You used to be covered by an HDHP but no longer are (the HDHP requirement is only to CONTRIBUTE to an HSA - you can still have an HSA and use the funds even if you're no longer covered by an HDHP)
- Your spouse is the one with the employer provided insurance and you want to make catch-up contributions to your own HSA
- Your employer doesn't provide an HSA
- Your have a non-employer HDHP (there are ACA marketplace HDHPs) and with no employer funding advantage, go independent on the HSA
- You like the Fidelity options better so periodically move money from your employer-sponsored HSA
Last edited by lstone19 on Fri Mar 01, 2019 4:26 pm, edited 1 time in total.

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

Post by Spirit Rider » Fri Mar 01, 2019 4:20 pm

schrute wrote:
Fri Mar 01, 2019 3:58 pm
drk wrote:
Sat Feb 23, 2019 10:02 pm
schrute wrote:
Sat Feb 23, 2019 10:01 pm
What if my work has an HSA but instead I picked PPO, I can’t make an individual Fidelity account and fund an HSA?
Correct: you cannot. You have to pick the HSA-compatible plan to be eligible to open and fund the HSA
I guess I'm confused. How would Fidelity or the government know I have an HSA option at work and if I have an HSA option (where I am enrolled) why would I ever use the Fidelity option when I would just be using my workplace's?
No you are not confused, Instead you are asking about whether you can you get away with tax evasion. We take a dim view of that on Bogleheads.

What Fidelity does or doesn't know and what the IRS does or doesn't doesn't know at the time you do it is irrelevant. The tax code, IRS regulations, guidance and publications all say you can't do it. For a law abiding citizen that should be enough. If that is not enough, when you are audited, all contributions and earnings would be immediately distributed. That distribution and any previous tax-free distributions would be subject to ordinary income tax, a 20% non-qualified distribution penalty and interest charges.

Also, there is a 6% tax penalty each year on the excess contribution balance of all invalid contributions. Not to mention, there is no statute of limitations SOL on Form 5329 tax penalties. The longer it takes the IRS to discover this and it is not a question of if, only when they catch you, it will be a geometrically larger tax assessment.

Many people in this thread have an HSA option at work. However, that option is far less than ideal. They are going to keep the employer's HSA for employer contributions and employee contributions not subject to FICA and then rolling the contributions over to Fidelity to take advantage of the better investment landscape.

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

Post by harvestbook » Fri Mar 01, 2019 8:04 pm

GibsonES335 wrote:
Sun Feb 10, 2019 2:33 pm
Question for those transferring Health Savings Administrators > Fidelity. When I use the Fidelity online transfer tool and it asks me to type the name of the company I will be transferring from, it has an option for "Health Savings Administration". Is that the same as Health Savings Administrators? Or should I cross it out and manually type the latter?
I did a 60-day rollover to get out of HealthSavings Administrators and avoid the $25 transfer fee. It took about four weeks of being out of the market before they sent me the balance (less a $25 account closing fee.) Be sure to close your account, as there is a $40 annual account fee. Not sure if a transfer is faster than a rollover, but at any rate, glad to be rid of them. Good luck.
I'm not smart enough to know, and I can't afford to guess.

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

Post by matto » Sat Mar 02, 2019 11:04 am

UFoP wrote:
Wed Feb 06, 2019 4:41 pm
matto wrote:
Fri Jan 25, 2019 10:04 am
I requested a reimbursement from my UMB HSA to my Fidelity cash management account.
Any update on this? I'm curious if this is a better option as it keeps the cash away from your individual account. Main question I'd have for this is how does Fidelity know the deposit coming straight from UMB is a rollover?
Sorry about the late response I don't check my notifications very often...

So I requested a reimbursement from my UMB HSA to my regular Fidelity Checking account (not an HSA). However, this failed twice due to ACH errors, which is annoying.

Instead, I eventually went relatively simple at that point and had UMB mail me a check for the entire balance of my HSA using their 'Bill Pay' feature and myself as the payee.

Once this check arrived, I scanned it using the Fidelity app and it hit my checking account instantly.

Note: The net result of the electronic reimbursement (if it had worked) or check to myself is that I got the money out of my UMB HSA into a personal account at Fidelity. Fidelity doesn't know this money is related to an HSA at all.

Then, in a second follow up step, I mailed a personal check written by myself to Fidelity and attached it to the Deposit Slip pdf in this thread, with the box marked for Rollover.

Once Fidelity got this check, it debited the balance from my Fidelity Checking Account and credited it to my Fidelity HSA, and everything was complete.

When I do my taxes this year, I will have to indicate that my HSA withdrawal was actually a rollover. I don't believe the custodian has a responsibility to check that it is in fact a rollover, that's between the IRS and me.

crg11
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by crg11 » Sat Mar 02, 2019 11:39 am

Does the Fidelity HSA offer an option to attach receipts to transactions? I like Optum Bank's Expense Journal, makes it really easy to ensure we have proper documentation for each transaction.

schrute
Posts: 310
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by schrute » Sun Mar 03, 2019 10:45 am

Spirit Rider wrote:
Fri Mar 01, 2019 4:20 pm
schrute wrote:
Fri Mar 01, 2019 3:58 pm
drk wrote:
Sat Feb 23, 2019 10:02 pm
schrute wrote:
Sat Feb 23, 2019 10:01 pm
What if my work has an HSA but instead I picked PPO, I can’t make an individual Fidelity account and fund an HSA?
Correct: you cannot. You have to pick the HSA-compatible plan to be eligible to open and fund the HSA
I guess I'm confused. How would Fidelity or the government know I have an HSA option at work and if I have an HSA option (where I am enrolled) why would I ever use the Fidelity option when I would just be using my workplace's?
No you are not confused, Instead you are asking about whether you can you get away with tax evasion. We take a dim view of that on Bogleheads.

What Fidelity does or doesn't know and what the IRS does or doesn't doesn't know at the time you do it is irrelevant. The tax code, IRS regulations, guidance and publications all say you can't do it. For a law abiding citizen that should be enough. If that is not enough, when you are audited, all contributions and earnings would be immediately distributed. That distribution and any previous tax-free distributions would be subject to ordinary income tax, a 20% non-qualified distribution penalty and interest charges.

Also, there is a 6% tax penalty each year on the excess contribution balance of all invalid contributions. Not to mention, there is no statute of limitations SOL on Form 5329 tax penalties. The longer it takes the IRS to discover this and it is not a question of if, only when they catch you, it will be a geometrically larger tax assessment.

Many people in this thread have an HSA option at work. However, that option is far less than ideal. They are going to keep the employer's HSA for employer contributions and employee contributions not subject to FICA and then rolling the contributions over to Fidelity to take advantage of the better investment landscape.
Yes, I am confused. Please do not speculate my intent. I'm not suggesting tax evasion, but rather trying to understand why anyone would use this kind of account (when you obviously have one at work) and if the limitation is a law or technical one. In Prioritizing Investments (https://www.bogleheads.org/wiki/Priorit ... nvestments) it says you should fund one, but doesn't explain the caveats mentioned. Like it's a technical limitation and if you fund in a individual HSA, how does that information get "recorded"? Is it like a Roth where you file a form to tell the government you made suggest an investment? If it's not allowed (if you have just an PPO and not a high-deductible plan) then is it prohibited (other answers here suggest yes).

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

Post by whodidntante » Sun Mar 03, 2019 10:55 am

crg11 wrote:
Sat Mar 02, 2019 11:39 am
Does the Fidelity HSA offer an option to attach receipts to transactions? I like Optum Bank's Expense Journal, makes it really easy to ensure we have proper documentation for each transaction.
They do offer a free document vault, but I doubt it's linked to specific transactions. I don't have any withdrawals to check that. I'm an HSA as IRA type.

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

Post by drk » Sun Mar 03, 2019 11:06 am

schrute wrote:
Sun Mar 03, 2019 10:45 am
Like it's a technical limitation and if you fund in a individual HSA, how does that information get "recorded"? Is it like a Roth where you file a form to tell the government you made suggest an investment? If it's not allowed (if you have just an PPO and not a high-deductible plan) then is it prohibited (other answers here suggest yes).
Filers who contribute to an HSA need to file a Form 8889, which covers HSA contributions, deduction, and distributions. Also, at distribution time, the IRS will receive a 1099-SA from the HSA custodian, and the filer will need to report it to keep the distribution tax-free.

If you have questions about the mechanics, though, I would recommend creating a new thread because we're off-topic.

crg11
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by crg11 » Sun Mar 03, 2019 11:39 am

whodidntante wrote:
Sun Mar 03, 2019 10:55 am
crg11 wrote:
Sat Mar 02, 2019 11:39 am
Does the Fidelity HSA offer an option to attach receipts to transactions? I like Optum Bank's Expense Journal, makes it really easy to ensure we have proper documentation for each transaction.
They do offer a free document vault, but I doubt it's linked to specific transactions. I don't have any withdrawals to check that. I'm an HSA as IRA type.
That's something else I've been thinking about. Income is high enough that I can probably switch to using the HSA as an IRA and just track how much of it I can withdraw thanks to HSA eligible transactions.

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

Post by whodidntante » Sun Mar 03, 2019 11:49 am

crg11 wrote:
Sun Mar 03, 2019 11:39 am
whodidntante wrote:
Sun Mar 03, 2019 10:55 am
crg11 wrote:
Sat Mar 02, 2019 11:39 am
Does the Fidelity HSA offer an option to attach receipts to transactions? I like Optum Bank's Expense Journal, makes it really easy to ensure we have proper documentation for each transaction.
They do offer a free document vault, but I doubt it's linked to specific transactions. I don't have any withdrawals to check that. I'm an HSA as IRA type.
That's something else I've been thinking about. Income is high enough that I can probably switch to using the HSA as an IRA and just track how much of it I can withdraw thanks to HSA eligible transactions.
It's the best tax advantaged account going if you can manage that. Specifically:

- You get a current year pre-tax contribution, and contributions through payroll deduction are exempt from social security and medicare taxes.
- You can withdraw contributions and earnings tax free if for qualified medical expenses. Medical expenses will shoot way up for most of us later in life, so I would not be concerned about over saving.
- If you do over save or medical costs drop to zero, it acts like an IRA once you're old.

I think there are some gotchas with inheriting an HSA, but I'll be dead and I'm sure my heirs are really smart and will be OK.

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