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

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

Post by Eno Deb » Sun Mar 03, 2019 2:23 pm

schrute wrote:
Sun Mar 03, 2019 10:45 am
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)
I can tell you why I switched from my work HSA with payroll deductions to a Fidelity HSA with deductible after-tax contributions: my old HSA had annual fees, and the investment part had limited choices and was cumbersome to use. It was also an additional provider I had to manage, while the HSA at Fidelity is consolidated with some other accounts I have there. The only downside is that I have to pay 1.5% or so Medicare tax on the contributions now which isn't the case when the contributions come from your payroll (Social Security tax is not affected in my case since I'm above the taxable maximum anyway).
Like it's a technical limitation and if you fund in a individual HSA, how does that information get "recorded"?
The HSA trustee reports your contributions to the IRS (form 5498-SA).

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

Post by DrGoogle2017 » Wed Mar 06, 2019 10:49 am

DrGoogle2017 wrote:
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.
My HSA Money is now completely transferred to Fidelity. It turned out Fidelity made a mistake, it sent the form somewhere, HSA bank didn’t find it. When I sent to HSAFORM@hsabank.com, HSA didn’t find it either, so the person I contacted said to send it directly to her, then she expedited for me. It took almost a week before the money arrived at Fidelity. So the moral of the story is to contact them, it shouldn’t take that long.

Marlago35
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Marlago35 » Wed Mar 06, 2019 11:27 am

I submitted my transfer paperwork to Fidelity HSA on 2/8. After 3+ weeks I went into the local branch today and turns out I needed to call my prior HSA provider (HSA Administrators) to confirm the transfer as requested. You'd think that Fidelity would have been more proactively alerting customers about needing to do that. If the customer doesn't contact HSA Admin within 28 days, the transfer request is cancelled and you have to start over.

So I spoke with HSA Administrators today and they said another 7-10 days now that I've confirmed. A little frustrating given I had to move all assets from Vanguard Admiral to cash to allow for this transfer to happen and will be out of the market for ~ 5 weeks. Balance is around $45k.

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

Post by Eno Deb » Wed Mar 06, 2019 11:37 am

Marlago35 wrote:
Wed Mar 06, 2019 11:27 am
I submitted my transfer paperwork to Fidelity HSA on 2/8. After 3+ weeks I went into the local branch today and turns out I needed to call my prior HSA provider (HSA Administrators) to confirm the transfer as requested. You'd think that Fidelity would have been more proactively alerting customers about needing to do that. If the customer doesn't contact HSA Admin within 28 days, the transfer request is cancelled and you have to start over.
I guess that depends on the provider. In my case (BenefitWallet) I did not have to confirm the transfer. The whole transfer took about 3 weeks between sending the paperwork to Fidelity and the money showing up on my new HSA.

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

Post by DonIce » Wed Mar 06, 2019 12:28 pm

Just started a transfer from HSABank/Ameritrade to Fidelity.

andrew08
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by andrew08 » Wed Mar 06, 2019 1:11 pm

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.

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

Post by EquityForAll » Wed Mar 06, 2019 1:31 pm

andrew08 wrote:
Wed Mar 06, 2019 1:11 pm
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.
As long as you selected the full transfer option on the initial online form, the ACAT system will transfer the entire balance in-kind (with fractional shares liquidated to cash first). Interestingly, while the funds were "moving" from TDA to Fidelity, it seems that they were actually still exposed to market movements over those few days in transit.

If the process takes more than a week, a quick call to Fidelity should jog the process along and I found their customer service to be very helpful. Keep an eye on the Expense Tracker on Fidelity's site, as it's accurate and updates with movements.

inbox788
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by inbox788 » Wed Mar 06, 2019 2:59 pm

EquityForAll wrote:
Wed Mar 06, 2019 1:31 pm
As long as you selected the full transfer option on the initial online form, the ACAT system will transfer the entire balance in-kind (with fractional shares liquidated to cash first). Interestingly, while the funds were "moving" from TDA to Fidelity, it seems that they were actually still exposed to market movements over those few days in transit.
Why wouldn't they? Isn't that the idea behind transfer in kind? The number of shares move from one account to another, not the value.

BTW, I've refinanced mortgage, and "moving" time is sometimes double charged interest. It might take several days, and lender 1 charges until end of transfer day, while lender 2 begins charging interest on start of transfer day. If that happens over a weekend holiday, you might pay an extra 3-4 days interest.

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

Post by EquityForAll » Wed Mar 06, 2019 5:09 pm

inbox788 wrote:
Wed Mar 06, 2019 2:59 pm
EquityForAll wrote:
Wed Mar 06, 2019 1:31 pm
As long as you selected the full transfer option on the initial online form, the ACAT system will transfer the entire balance in-kind (with fractional shares liquidated to cash first). Interestingly, while the funds were "moving" from TDA to Fidelity, it seems that they were actually still exposed to market movements over those few days in transit.
Why wouldn't they? Isn't that the idea behind transfer in kind? The number of shares move from one account to another, not the value.
Absolutely right. I wasn't familiar with how ACAT transfers functioned so my comment was more for the folks in a similar situation (who might be concerned about being "out of the market" during the transition, such as during rollover distributions).

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

Post by LadyGeek » Wed Mar 06, 2019 7:30 pm

The wiki has some background info: Transferring funds (Securities transfer (ACATS))
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crg11
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by crg11 » Fri Mar 08, 2019 8:53 am

Word of warning to folks...if you're initiating a transfer to Fidelity from Optum Bank, do not select the "all funds" option when filling out the Fidelity transfer form. It caused my Optum Bank account to be closed, and I'm currently waiting to hear back from them on whether it can be reopened so I can still receive my payroll contributions :oops:

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

Post by sco » Fri Mar 08, 2019 10:58 pm

crg11 wrote:
Fri Mar 08, 2019 8:53 am
Word of warning to folks...if you're initiating a transfer to Fidelity from Optum Bank, do not select the "all funds" option when filling out the Fidelity transfer form. It caused my Optum Bank account to be closed, and I'm currently waiting to hear back from them on whether it can be reopened so I can still receive my payroll contributions :oops:
This happened to me with another custodian, best to just out in a dollar amount or go with the withdrawal route. Which is what I will do moving forward.

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

Post by uberme » Tue Mar 12, 2019 12:48 pm

sco wrote:
Fri Mar 08, 2019 10:58 pm
crg11 wrote:
Fri Mar 08, 2019 8:53 am
Word of warning to folks...if you're initiating a transfer to Fidelity from Optum Bank, do not select the "all funds" option when filling out the Fidelity transfer form. It caused my Optum Bank account to be closed, and I'm currently waiting to hear back from them on whether it can be reopened so I can still receive my payroll contributions :oops:
This happened to me with another custodian, best to just out in a dollar amount or go with the withdrawal route. Which is what I will do moving forward.
Could you please elaborate? Looking to open at Fidelity but need to keep old open. Want to transfer a specific $ amount into Fidelity

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

Post by RickBoglehead » Tue Mar 12, 2019 12:52 pm

uberme wrote:
Tue Mar 12, 2019 12:48 pm
sco wrote:
Fri Mar 08, 2019 10:58 pm
crg11 wrote:
Fri Mar 08, 2019 8:53 am
Word of warning to folks...if you're initiating a transfer to Fidelity from Optum Bank, do not select the "all funds" option when filling out the Fidelity transfer form. It caused my Optum Bank account to be closed, and I'm currently waiting to hear back from them on whether it can be reopened so I can still receive my payroll contributions :oops:
This happened to me with another custodian, best to just out in a dollar amount or go with the withdrawal route. Which is what I will do moving forward.
Could you please elaborate? Looking to open at Fidelity but need to keep old open. Want to transfer a specific $ amount into Fidelity
Then specify a specific dollar amount. This issue happens when you select ALL and is not unique to Optum Bank or to an HSA - happens when you transfer All IRA assets too.
Avid user of forums on a variety of interests - financial, home brewing, F-150, PHEV, home repair and more. Enjoy learning and passing on knowledge.

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

Post by uberme » Tue Mar 12, 2019 1:08 pm

RickBoglehead wrote:
Tue Mar 12, 2019 12:52 pm
uberme wrote:
Tue Mar 12, 2019 12:48 pm
sco wrote:
Fri Mar 08, 2019 10:58 pm
crg11 wrote:
Fri Mar 08, 2019 8:53 am
Word of warning to folks...if you're initiating a transfer to Fidelity from Optum Bank, do not select the "all funds" option when filling out the Fidelity transfer form. It caused my Optum Bank account to be closed, and I'm currently waiting to hear back from them on whether it can be reopened so I can still receive my payroll contributions :oops:
This happened to me with another custodian, best to just out in a dollar amount or go with the withdrawal route. Which is what I will do moving forward.
Could you please elaborate? Looking to open at Fidelity but need to keep old open. Want to transfer a specific $ amount into Fidelity
Then specify a specific dollar amount. This issue happens when you select ALL and is not unique to Optum Bank or to an HSA - happens when you transfer All IRA assets too.
Thanks - was just confirming you could specify a specific dollar amount. Called Fidelity HSA group and thinking the withdrawal from current, do 60 day rollover is the best option. I don't want to mail any forms, esp. with SS# on them. Doing to do rollover every 12 months anyhow in the future.

EDIT: Actually I can't do this BECAUSE HSA BANK SUCKS! $2500 daily withdrawal limit - what a scam

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

Post by Spirit Rider » Tue Mar 12, 2019 3:04 pm

uberme wrote:
Tue Mar 12, 2019 1:08 pm
EDIT: Actually I can't do this BECAUSE HSA BANK SUCKS! $2500 daily withdrawal limit - what a scam
It sounds like you know this from your post, but in case you or others were not aware of it. HSA accounts have a separate, but same rule as IRAs that you can only do one indirect rollover per 12 month period.

Do NOT attempt more than one rollover because of this $2500 limit, because the second and subsequent withdrawals will be considered non-qualified distributions not eligible for rollover and subject income taxes and the 20% penalty.

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

Post by southerndoc » Tue Mar 12, 2019 6:08 pm

Spirit Rider wrote:
Tue Mar 12, 2019 3:04 pm
Do NOT attempt more than one rollover because of this $2500 limit, because the second and subsequent withdrawals will be considered non-qualified distributions not eligible for rollover and subject income taxes and the 20% penalty.
I think I know the answer to this, but just wanted to validate it. This doesn't apply to custodian-to-custodian transfers, correct?

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

Post by Spirit Rider » Tue Mar 12, 2019 8:04 pm

southerndoc wrote:
Tue Mar 12, 2019 6:08 pm
Spirit Rider wrote:
Tue Mar 12, 2019 3:04 pm
Do NOT attempt more than one rollover because of this $2500 limit, because the second and subsequent withdrawals will be considered non-qualified distributions not eligible for rollover and subject income taxes and the 20% penalty.
I think I know the answer to this, but just wanted to validate it. This doesn't apply to custodian-to-custodian transfers, correct?
Correct, just like with an IRA, you can do unlimited HSA trustee -> trustee transfers.

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

Post by sco » Tue Mar 12, 2019 10:32 pm

uberme wrote:
Tue Mar 12, 2019 12:48 pm
sco wrote:
Fri Mar 08, 2019 10:58 pm
crg11 wrote:
Fri Mar 08, 2019 8:53 am
Word of warning to folks...if you're initiating a transfer to Fidelity from Optum Bank, do not select the "all funds" option when filling out the Fidelity transfer form. It caused my Optum Bank account to be closed, and I'm currently waiting to hear back from them on whether it can be reopened so I can still receive my payroll contributions :oops:
This happened to me with another custodian, best to just out in a dollar amount or go with the withdrawal route. Which is what I will do moving forward.
Could you please elaborate? Looking to open at Fidelity but need to keep old open. Want to transfer a specific $ amount into Fidelity
My custodian just looked at the Fidelity form and closed the account.

It is far easier to do the once a year withdraw/Deposit and not it on your taxes. Otherwise expect to be out of the market several weeks, and possibly a lot of phone calls. Including your employer wanting to know what to do with your deposit?

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

Post by AkwardDoct@rd » Tue Mar 12, 2019 10:56 pm

Does the fidelity HSA require you to keep 2K in cash or can you invest it all?

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

Post by whodidntante » Tue Mar 12, 2019 10:56 pm

AkwardDoct@rd wrote:
Tue Mar 12, 2019 10:56 pm
Does the fidelity HSA require you to keep 2K in cash or can you invest it all?
You can invest it all.

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

Post by whodidntante » Tue Mar 12, 2019 10:59 pm

sco wrote:
Tue Mar 12, 2019 10:32 pm
uberme wrote:
Tue Mar 12, 2019 12:48 pm
sco wrote:
Fri Mar 08, 2019 10:58 pm
crg11 wrote:
Fri Mar 08, 2019 8:53 am
Word of warning to folks...if you're initiating a transfer to Fidelity from Optum Bank, do not select the "all funds" option when filling out the Fidelity transfer form. It caused my Optum Bank account to be closed, and I'm currently waiting to hear back from them on whether it can be reopened so I can still receive my payroll contributions :oops:
This happened to me with another custodian, best to just out in a dollar amount or go with the withdrawal route. Which is what I will do moving forward.
Could you please elaborate? Looking to open at Fidelity but need to keep old open. Want to transfer a specific $ amount into Fidelity
My custodian just looked at the Fidelity form and closed the account.

It is far easier to do the once a year withdraw/Deposit and not it on your taxes. Otherwise expect to be out of the market several weeks, and possibly a lot of phone calls. Including your employer wanting to know what to do with your deposit?
I opted for a 60 day rollover because I wouldn't trust Optum to get my coffee order right. And I like black coffee.

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

Post by sco » Tue Mar 12, 2019 11:21 pm

whodidntante wrote:
Tue Mar 12, 2019 10:59 pm
sco wrote:
Tue Mar 12, 2019 10:32 pm
uberme wrote:
Tue Mar 12, 2019 12:48 pm
sco wrote:
Fri Mar 08, 2019 10:58 pm
crg11 wrote:
Fri Mar 08, 2019 8:53 am
Word of warning to folks...if you're initiating a transfer to Fidelity from Optum Bank, do not select the "all funds" option when filling out the Fidelity transfer form. It caused my Optum Bank account to be closed, and I'm currently waiting to hear back from them on whether it can be reopened so I can still receive my payroll contributions :oops:
This happened to me with another custodian, best to just out in a dollar amount or go with the withdrawal route. Which is what I will do moving forward.
Could you please elaborate? Looking to open at Fidelity but need to keep old open. Want to transfer a specific $ amount into Fidelity
My custodian just looked at the Fidelity form and closed the account.

It is far easier to do the once a year withdraw/Deposit and not it on your taxes. Otherwise expect to be out of the market several weeks, and possibly a lot of phone calls. Including your employer wanting to know what to do with your deposit?
I opted for a 60 day rollover because I wouldn't trust Optum to get my coffee order right. And I like black coffee.
never a bad option, as long as you can live with the once a year withdrawl.....

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

Post by OnLevel » Wed Mar 13, 2019 4:01 am

Spirit Rider wrote:
Tue Mar 12, 2019 3:04 pm
uberme wrote:
Tue Mar 12, 2019 1:08 pm
EDIT: Actually I can't do this BECAUSE HSA BANK SUCKS! $2500 daily withdrawal limit - what a scam
It sounds like you know this from your post, but in case you or others were not aware of it. HSA accounts have a separate, but same rule as IRAs that you can only do one indirect rollover per 12 month period.

Do NOT attempt more than one rollover because of this $2500 limit, because the second and subsequent withdrawals will be considered non-qualified distributions not eligible for rollover and subject income taxes and the 20% penalty.
Would multiple withdrawals then deposit the total amount within 60 days count as one rollover?

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

Post by cas » Wed Mar 13, 2019 6:14 am

OnLevel wrote:
Wed Mar 13, 2019 4:01 am
Spirit Rider wrote:
Tue Mar 12, 2019 3:04 pm
uberme wrote:
Tue Mar 12, 2019 1:08 pm
EDIT: Actually I can't do this BECAUSE HSA BANK SUCKS! $2500 daily withdrawal limit - what a scam
It sounds like you know this from your post, but in case you or others were not aware of it. HSA accounts have a separate, but same rule as IRAs that you can only do one indirect rollover per 12 month period.

Do NOT attempt more than one rollover because of this $2500 limit, because the second and subsequent withdrawals will be considered non-qualified distributions not eligible for rollover and subject income taxes and the 20% penalty.
Would multiple withdrawals then deposit the total amount within 60 days count as one rollover?
There is a thorough discussion/debate/review-of-relevant-IRS-pronouncements on this "what about multiple withdrawals" topic in this thread:

"reasons to avoid indirect HSA rollover?"; Dec 11, 2018; viewtopic.php?t=266089

Make sure you keep reading all the way through to the end, particularly making sure to make it through to the part where SpiritRider chimes in with this:
You have it exactly backwards and are misinterpreting the Pub 969 quote. Yes, you can only make one rollover contribution per twelve-month period, but the period is based on the distribution and not the contribution. One distribution and one or more contributions, fine. Many distributions and one or more contributions, disaster.

I hate to be the bearer of extremely bad news. Only the first distribution amount of $2,500 is eligible for tax-free rollover. All the other distributions that exceed your unreimbursed qualified medical expenses are non-qualified distributions, subject to ordinary taxes and if < age 65, subject to a 20% excise tax penalty, are not eligible for rollover and constitute excess contributions if not removed.

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

Post by step-in-time » Wed Mar 13, 2019 9:05 am

3NU wrote:
Thu Jan 10, 2019 1:21 pm
Hi, All,

I thought I would share my experience initiating the transfer of my HSA funds from my credit union to Fidelity, particularly speaking to the Transfer of Assets (TOA) form that many of us have needed to complete as Fidelity's "Step 1".

I read earlier in this forum that one or two people were able to initiate their TOA via secure message, so I gave it a try this past Monday (01/07/19) by submitting my form online. Although Fidelity's automated response noted that I'd receive a response within 24 hours (elsewhere on their site it says 3-5 business days), I still had heard nothing from Fidelity as of today (01/10/19), so I initiated a live chat with a representative.

During my live chat, I learned that the reason some of us have been able to get the TOA processed via secure message -- while others of us have not -- has to do with the policies of the HSA custodian out of which you are transferring your HSA funds. Most custodians require that the TOA form with the original signature (some, apparently, also with a Medallion Signature Guarantee) be sent to them; in this case, Fidelity will send your original TOA form to your current HSA custodian in order to initiate the transfer. Other custodians, however, are okay with simply receiving a faxed copy of the TOA to process the transfer.

What ended up happening for me was that the live chat agent called me by phone, I had to three-way conference in my credit union, and the three of us could talk and see if my credit union would accept the faxed copy. It was most efficient to follow this process, as my credit union had to first speak with me to confirm my identity and then could speak with Fidelity, upon my request. Turns out my credit union nearly always receives a TOA with original signatures but because they had my signature on file to compare against, they were willing to accept a faxed version of the TOA.

TL;DR You can submit your Fidelity Transfer of Assets (TOA) form into Fidelity by secure message, but it can only be successfully processed this way if your current HSA custodian is willing to accept the TOA form by fax. As such, if your current HSA custodian needs an original signature with the TOA form, it will be most efficient to mail your TOA form to Fidelity.
Thank you for this helpful post! The Medallion Signature Guarantee was something I was wondering about. I called my credit union, they confirmed they did not need a medallion signature guarantee with my verbal approval of the transfer, and to fax the transfer of assets form directly to them. I also submitted the TOA form to Fidelity online via secure message. Hopefully it will be processed promptly.

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

Post by OnLevel » Wed Mar 13, 2019 12:45 pm

cas wrote:
Wed Mar 13, 2019 6:14 am
OnLevel wrote:
Wed Mar 13, 2019 4:01 am
Spirit Rider wrote:
Tue Mar 12, 2019 3:04 pm
uberme wrote:
Tue Mar 12, 2019 1:08 pm
EDIT: Actually I can't do this BECAUSE HSA BANK SUCKS! $2500 daily withdrawal limit - what a scam
It sounds like you know this from your post, but in case you or others were not aware of it. HSA accounts have a separate, but same rule as IRAs that you can only do one indirect rollover per 12 month period.

Do NOT attempt more than one rollover because of this $2500 limit, because the second and subsequent withdrawals will be considered non-qualified distributions not eligible for rollover and subject income taxes and the 20% penalty.
Would multiple withdrawals then deposit the total amount within 60 days count as one rollover?
There is a thorough discussion/debate/review-of-relevant-IRS-pronouncements on this "what about multiple withdrawals" topic in this thread:

"reasons to avoid indirect HSA rollover?"; Dec 11, 2018; viewtopic.php?t=266089

Make sure you keep reading all the way through to the end, particularly making sure to make it through to the part where SpiritRider chimes in with this:
You have it exactly backwards and are misinterpreting the Pub 969 quote. Yes, you can only make one rollover contribution per twelve-month period, but the period is based on the distribution and not the contribution. One distribution and one or more contributions, fine. Many distributions and one or more contributions, disaster.

I hate to be the bearer of extremely bad news. Only the first distribution amount of $2,500 is eligible for tax-free rollover. All the other distributions that exceed your unreimbursed qualified medical expenses are non-qualified distributions, subject to ordinary taxes and if < age 65, subject to a 20% excise tax penalty, are not eligible for rollover and constitute excess contributions if not removed.
Thank you. This is very useful.

jbsmith05
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by jbsmith05 » Thu Mar 14, 2019 6:01 am

Helpful thread...question for the HSA Bank Folks....

I started a HSA at the beginning of the year, unfortunately it was through Cigna/HSA Bank. I then changed jobs last month, the new job doesn't have a HSA option...so since I only had like $1200 in the HSA Bank cash account (no TDA investment account established) I figured I'd transfer to fidelity as I have a number of other investments there.

Filled out the online form etc like I've done in the past...expected completion date passed, no completion. Fido said it's taking HSA Bank 3-5 weeks to do these because its all manual and paper based (read they are mailing fidelity a check). They saw no issues on their end.

Called HSA Bank - they allowed me to email the fidelity form that the online system created and they responded that it has been given to their operations dept.

Any idea how long now I must wait for HSA Bank to mail the check to fido?

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

Post by OnLevel » Thu Mar 14, 2019 9:44 pm

I'm about to do a 60-day rollover. Does anyone have experience with bringing the check to a Fidelity branch instead of snail-mailing it?

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

Post by OnLevel » Fri Mar 15, 2019 4:15 pm

OnLevel wrote:
Thu Mar 14, 2019 9:44 pm
I'm about to do a 60-day rollover. Does anyone have experience with bringing the check to a Fidelity branch instead of snail-mailing it?
Interesting update:

Called local office to ask if they can handle 60-day rollover check: guy in the phone seems baffled, puts me on hold to check and comes back to tell me I can only do it once in a lifetime.

I think "ok, he probably thinks it's from an IRA, but as long as they can handle HSA deposits I'm good.

I show up to the office with my check and deposit slip identifying the hsa account and that it's a 60-day rollover.
A lady at the front desk takes the deposit, processed it and gives me a receipt.

I have a weird feeling because the lady didn't seem as surprised as the guy I spoke to on the phone, so I log into the Fidelity app when I get to my car to see if the pending transaction is there.

No pending transaction, and upon further review, the check was deposited into my traditional IRA, not into my HSA :oops:

So I go back in to let them know. The manager then explains to me that their location is not able to take HSA deposits yet. She's currently working on getting the erroneous deposit deleted.

I should've just snail-mailed it :(

So much for having a local Fidelity office :(

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

Post by jeffyscott » Fri Mar 15, 2019 4:23 pm

OnLevel wrote:
Fri Mar 15, 2019 4:15 pm
I should've just snail-mailed it :(

So much for having a local Fidelity office :(
Sorry, I could've warned you of that.

I didn't have your fiasco, but after having been told I could make the deposit for my HSA transfer at the local branch, found out that was not so upon arrival there. They offered to mail the check in for me, which they did. But then Fidelity subsequently returned the check to me, as they required additional documentation.
press on, regardless - John C. Bogle

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

Post by OnLevel » Fri Mar 15, 2019 4:47 pm

jeffyscott wrote:
Fri Mar 15, 2019 4:23 pm
OnLevel wrote:
Fri Mar 15, 2019 4:15 pm
I should've just snail-mailed it :(

So much for having a local Fidelity office :(
Sorry, I could've warned you of that.

I didn't have your fiasco, but after having been told I could make the deposit for my HSA transfer at the local branch, found out that was not so upon arrival there. They offered to mail the check in for me, which they did. But then Fidelity subsequently returned the check to me, as they required additional documentation.
No worries! Lesson learned for me! Do you mind sharing what additional documentation did they required?

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

Post by whodidntante » Fri Mar 15, 2019 5:10 pm

The instructions on the website say to write 60 day rollover and the account number on the check and mail it in. No form required. No branch visit. In spite of the 20 page thread here, HSAs are sufficiently unusual that I would follow instructions.

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

Post by jeffyscott » Fri Mar 15, 2019 5:13 pm

OnLevel wrote:
Fri Mar 15, 2019 4:47 pm
jeffyscott wrote:
Fri Mar 15, 2019 4:23 pm
OnLevel wrote:
Fri Mar 15, 2019 4:15 pm
I should've just snail-mailed it :(

So much for having a local Fidelity office :(
Sorry, I could've warned you of that.

I didn't have your fiasco, but after having been told I could make the deposit for my HSA transfer at the local branch, found out that was not so upon arrival there. They offered to mail the check in for me, which they did. But then Fidelity subsequently returned the check to me, as they required additional documentation.
No worries! Lesson learned for me! Do you mind sharing what additional documentation did they required?
See here: viewtopic.php?f=10&t=263661&p=4339875#p4339875

But mine was not a 60 day rollover, it was a transfer (though many, including Fidelity, call it a rollover anyway). The check was made out to Fidelity, not me.
press on, regardless - John C. Bogle

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

Post by wxturtle » Sun Mar 17, 2019 10:44 am

Looking for an ELI5 (ok, ELI25).

Have an HSA through HSABank. No longer employed at the company that used them so it's just my HSA with no contributions.

Currently, I have $5k at HSA Bank in cash and $25k at TDA (invested in no-load funds). Would like to move this over to Fidelity.

From those who have done this (HSABank -> Fidelity), what is the most painless process?

0.) I assume step 1 is to open an HSA via Fidelity. After this...

1.) Should I move all of my $$$ into either TDA or the HSABank cash account to get ready to move? Or can Fidelity just "call" HSA to handle the split $$?
2.) Should I liquidate all my positions while they are no-load at TDA?
3.) Do I need to leave some money in HSABank to cover fees/closeout costs?
4.) Is trustee-to-trustee transfer via Fidelity (after signing up for an account) the way to go?

TIA.

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

Post by quantAndHold » Sun Mar 17, 2019 10:54 am

wxturtle wrote:
Sun Mar 17, 2019 10:44 am
Looking for an ELI5 (ok, ELI25).

Have an HSA through HSABank. No longer employed at the company that used them so it's just my HSA with no contributions.

Currently, I have $5k at HSA Bank in cash and $25k at TDA (invested in no-load funds). Would like to move this over to Fidelity.

From those who have done this (HSABank -> Fidelity), what is the most painless process?

0.) I assume step 1 is to open an HSA via Fidelity. After this...

1.) Should I move all of my $$$ into either TDA or the HSABank cash account to get ready to move? Or can Fidelity just "call" HSA to handle the split $$?
2.) Should I liquidate all my positions while they are no-load at TDA?
3.) Do I need to leave some money in HSABank to cover fees/closeout costs?
4.) Is trustee-to-trustee transfer via Fidelity (after signing up for an account) the way to go?

TIA.
HSABank will not talk to Fidelity about your account. Ever, for any reason. Even when it makes sense that they should. I had to conference call in with both sides and listen in when the Fidelity guy needed the answer to simple questions. Like “when did you send the check?”

You also can’t move anything in kind, so you’ll need to liquidate everything.

I did trustee to trustee. It took 3 months to the day, and a lot of phone calls. If it had worked correctly the first time, it would have only taken 4-6 weeks.

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

Post by hoppy08520 » Mon Mar 18, 2019 9:29 am

wxturtle wrote:
Sun Mar 17, 2019 10:44 am
Looking for an ELI5 (ok, ELI25).

Have an HSA through HSABank. No longer employed at the company that used them so it's just my HSA with no contributions.

Currently, I have $5k at HSA Bank in cash and $25k at TDA (invested in no-load funds). Would like to move this over to Fidelity.

From those who have done this (HSABank -> Fidelity), what is the most painless process?

0.) I assume step 1 is to open an HSA via Fidelity. After this...

1.) Should I move all of my $$$ into either TDA or the HSABank cash account to get ready to move? Or can Fidelity just "call" HSA to handle the split $$?
2.) Should I liquidate all my positions while they are no-load at TDA?
3.) Do I need to leave some money in HSABank to cover fees/closeout costs?
4.) Is trustee-to-trustee transfer via Fidelity (after signing up for an account) the way to go?

TIA.
Here's how I did it. I had HSA Bank + TDA through my employer and Cigna insurance (not sure if the last part matters). I had the HSA Bank HSA from a former employer, so there were no longer any payroll contributions going into it.

1. Open new HSA at Fidelity

2. In HSA Bank, I had all my assets in TDA in a couple of ETFs, I had $0 in the HSB Bank savings. I was reading that nearly everyone is saying you should transfer everything into TDA, that works better

3. In Fidelity HSA, initiate a trustee to trustee transfer. Choose my TDA account as the "from" account, not HSA Bank. Transfer all assets "in kind" so you'll have the same positions before and after; note that only whole shares can transfer, any fractional shares will wind up in cash/money-market. I did this all online. I believe Fidelity required me to go into my HSA Bank (or TDA?) account and run a statement and download it as PDF, then upload that PDF into Fidelity, as proof that I was the account holder. That was a few months ago so I don't remember those exact details, but I did it all online - no snail mail, no fax, no notary seals, etc.

4. Wait it out. I did need to call Fidelity and HSA Bank and TDA one or two times each because of snags in the process, so pay attention to the "tracking" areas in Fidelity to monitor your status. I did my transfer very soon after Fidelity opened up this new individual HSA program, and I am guessing it's easier now because Fidelity has more experience with this routine. I didn't have to pay any closing fees at HSA Bank or TDA but that might have changed since then.

Good luck

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

Post by step-in-time » Tue Mar 19, 2019 7:36 am

step-in-time wrote:
Wed Mar 13, 2019 9:05 am
3NU wrote:
Thu Jan 10, 2019 1:21 pm
Hi, All,

I thought I would share my experience initiating the transfer of my HSA funds from my credit union to Fidelity, particularly speaking to the Transfer of Assets (TOA) form that many of us have needed to complete as Fidelity's "Step 1".

I read earlier in this forum that one or two people were able to initiate their TOA via secure message, so I gave it a try this past Monday (01/07/19) by submitting my form online. Although Fidelity's automated response noted that I'd receive a response within 24 hours (elsewhere on their site it says 3-5 business days), I still had heard nothing from Fidelity as of today (01/10/19), so I initiated a live chat with a representative.

During my live chat, I learned that the reason some of us have been able to get the TOA processed via secure message -- while others of us have not -- has to do with the policies of the HSA custodian out of which you are transferring your HSA funds. Most custodians require that the TOA form with the original signature (some, apparently, also with a Medallion Signature Guarantee) be sent to them; in this case, Fidelity will send your original TOA form to your current HSA custodian in order to initiate the transfer. Other custodians, however, are okay with simply receiving a faxed copy of the TOA to process the transfer.

What ended up happening for me was that the live chat agent called me by phone, I had to three-way conference in my credit union, and the three of us could talk and see if my credit union would accept the faxed copy. It was most efficient to follow this process, as my credit union had to first speak with me to confirm my identity and then could speak with Fidelity, upon my request. Turns out my credit union nearly always receives a TOA with original signatures but because they had my signature on file to compare against, they were willing to accept a faxed version of the TOA.

TL;DR You can submit your Fidelity Transfer of Assets (TOA) form into Fidelity by secure message, but it can only be successfully processed this way if your current HSA custodian is willing to accept the TOA form by fax. As such, if your current HSA custodian needs an original signature with the TOA form, it will be most efficient to mail your TOA form to Fidelity.
Thank you for this helpful post! The Medallion Signature Guarantee was something I was wondering about. I called my credit union, they confirmed they did not need a medallion signature guarantee with my verbal approval of the transfer, and to fax the transfer of assets form directly to them. I also submitted the TOA form to Fidelity online via secure message. Hopefully it will be processed promptly.
Very impressed with Fidelity. In less than a week and the account is up and running, transfer of assets completed. TOA forms were submitted 3/13, everything is complete online 3/19. Very helpful to know about submitting the forms via secure message and calling the HSA custodian to confirm and verbally approve the transfer to expedite the request.

One thing though, I do not see the interest rate clearly stated for the Core Position FDIC Insured Deposit Sweep default holding.

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

Post by jeffyscott » Tue Mar 19, 2019 8:51 am

step-in-time wrote:
Tue Mar 19, 2019 7:36 am
One thing though, I do not see the interest rate clearly stated for the Core Position FDIC Insured Deposit Sweep default holding.
They do show it somewhere, it's around 0.4%, I leave nothing in that account. You can even trade directly from a money market account at Fidelity, so there is little reason to leave anything in the FDIC account.

This is for IRA, but I assume rate is the same for HSA (but the HSA allows only the FDIC account as sweep):
https://accountopening.fidelity.com/ftg ... erestRates
press on, regardless - John C. Bogle

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

Post by numberman » Tue Mar 19, 2019 11:15 pm

Sharing my experience with a Saturna/Pershing -> Fidelity transfer:

Brief background: I had an HSA with Saturna (not through an employer or anything; I'm self-employed), with all assets invested in VTSAX. This was several months ago; took me awhile to just get around to writing this down.

On December 11, 2018, I downloaded the Fidelity TOA form. Filled it out, printed it, signed it, scanned it, and sent it to Fidelity electronically. I specified to transfer all assets in-kind. The medallion signature thing was left blank.

Sometime in late December or early January, I got a physical letter in the mail saying that they couldn't process the transfer because they needed a letter of release from Saturna. The online transfer status page also had a generic message saying there was an issue preventing them from completing the request (but doesn't give the reason). The online page gives a date of 12/26/18 for this, but I don't think I got an email or other notification; the only way to know this happened was the physical letter, or if I just kept checking the Fidelity site.

I called Saturna, and they said they just have to flag my account appropriately for the transfer or whatnot; I don't need an actual letter of release. They had now done so, so I just had to tell Fidelity to try the transfer again (if I recall correctly, they suggested I wait 1 business day). The next day I called Fidelity and had them retry the transfer. A few days later the transfer went through, and the assets showed up in my account. I assume this step and the resulting delay could be skipped if you call Saturna before the transfer request gets to them (so if I did this again, I'd probably call them the same day I submitted the Fidelity request).

I did incur a $75 fee for closing out my Saturna account. I didn't try to get this waived or reimbursed; I just didn't care enough to try. No assets were sold or anything to cover this; I just had a -$75 cash balance in my account, which eventually went away as I made contributions.

My VTSAX shares were transferred intact. I wasn't sure if they would be sold or not since I thought Admiral shares are harder to transfer outside of Vanguard, but they came through fine. I don't plan on selling them, but of course future contributions will go into a Fidelity fund.

Contributions to the Fidelity HSA so far have gone through fine. I've been making my contributions via ACH deposits using the direct deposit info on Fidelity's page.

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

Post by step-in-time » Wed Mar 20, 2019 8:17 am

jeffyscott wrote:
Tue Mar 19, 2019 8:51 am
step-in-time wrote:
Tue Mar 19, 2019 7:36 am
One thing though, I do not see the interest rate clearly stated for the Core Position FDIC Insured Deposit Sweep default holding.
They do show it somewhere, it's around 0.4%, I leave nothing in that account. You can even trade directly from a money market account at Fidelity, so there is little reason to leave anything in the FDIC account.

This is for IRA, but I assume rate is the same for HSA (but the HSA allows only the FDIC account as sweep):
https://accountopening.fidelity.com/ftg ... erestRates
Thank you! I will get this invested asap.

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

Post by schildi » Wed Mar 20, 2019 6:52 pm

OnLevel wrote:
Fri Mar 15, 2019 4:15 pm
OnLevel wrote:
Thu Mar 14, 2019 9:44 pm
I'm about to do a 60-day rollover. Does anyone have experience with bringing the check to a Fidelity branch instead of snail-mailing it?
Interesting update:

Called local office to ask if they can handle 60-day rollover check: guy in the phone seems baffled, puts me on hold to check and comes back to tell me I can only do it once in a lifetime.

I think "ok, he probably thinks it's from an IRA, but as long as they can handle HSA deposits I'm good.

I show up to the office with my check and deposit slip identifying the hsa account and that it's a 60-day rollover.
A lady at the front desk takes the deposit, processed it and gives me a receipt.

I have a weird feeling because the lady didn't seem as surprised as the guy I spoke to on the phone, so I log into the Fidelity app when I get to my car to see if the pending transaction is there.

No pending transaction, and upon further review, the check was deposited into my traditional IRA, not into my HSA :oops:

So I go back in to let them know. The manager then explains to me that their location is not able to take HSA deposits yet. She's currently working on getting the erroneous deposit deleted.

I should've just snail-mailed it :(

So much for having a local Fidelity office :(
LOL, the exact same thing happened to me.

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