Hsabank to fidelity-HSA

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Topic Author
Jyb33
Posts: 18
Joined: Tue Mar 26, 2019 7:42 pm

Hsabank to fidelity-HSA

Post by Jyb33 » Wed Jun 12, 2019 6:39 pm

I think I"ve read every post here from the past year or two regarding opening a Fidelity (Fid) HSA, but I still don't
know whether I can use the following method to close the hsabank HSA and transfer it to fid. First, I have about
$7000 in hsabank (nothing invested in the td......investment side of it).
I also have a fid. CMA account, and it's already linked to hsabank for ACH transfers (for the past few years, and I've
used that linkage to contribute and withdraw from the hsa in the past). (I can no longer contribute to an hsa, by the way).
I haven't set up a Fid. HSA yet.

I''m hoping I can just open a Fid. HSA, and then transfer all of the HSAbank money to Fid.CMA , and then to Fid.HSA.
But I doubt there's any way to notate the transfer from hsabank to fid-cma (to state the purpose of the transfer).....
or whether that would be necessary. (I don't remember if there's a way to notate).
I haven't asked hsabank or Fid. about any of this yet...I'm not sure I'll get correct answers if I do...
Can anyone shed some photons on this?

curmudgeon
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Re: Hsabank to fidelity-HSA

Post by curmudgeon » Wed Jun 12, 2019 6:55 pm

I did this transfer recently, but I just did it via a pull directly to the new HSA by fidelity. I could do it all online, and it took about 3 weeks to complete. I'm not sure if it will show up more cleanly in the tax reporting paperwork to the IRS or not; it feels like a trustee-to-trustee rollover should be cleaner, but for all I know the paperwork will just show a large withdrawal and deposit.

fabdog
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Location: Williamsburg VA

Re: Hsabank to fidelity-HSA

Post by fabdog » Wed Jun 12, 2019 7:14 pm

no need for the CMA in the middle. You can just have it sent directly to the Fidelity HSA. As noted, a pretty seamless process

If you want to try and avoid the $25 fee for closing the HSA Bank account, you can withdraw all the money, and then deposit in the Fidelity HSA. there is a spot on the Fidelity HSA deposit form to indicate it's a rollover. You can only do 1 of those a year

There have been multiple threads here with details... try the search box upper right

Mike

standard7
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Re: Hsabank to fidelity-HSA

Post by standard7 » Wed Jun 12, 2019 8:00 pm

I just completed a transfer from HSAbank to Fidelity by setting up an account and then transfer from HSAbank all online via Fidelity. All money was held in the hsabank acct and nothing in the TDA brokerage, so it was easy.

I just called HSAbank to see if the account was still open because I could still login even though the balance was zero. They told me it was closed after the transfer. And I don’t think there were any fees charged.

One thing.... before you proceed make sure you have all your records from HSAbank, if not it’s easy to download all of your statements and tax forms.

rocketrex
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Re: Hsabank to fidelity-HSA

Post by rocketrex » Wed Jun 12, 2019 9:41 pm

I did this exact thing recently as well. Piece of cake. Just have a recent statement from hsabank downloaded and then give Fidelity a call.

Topic Author
Jyb33
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Joined: Tue Mar 26, 2019 7:42 pm

Re: Hsabank to fidelity-HSA

Post by Jyb33 » Wed Jun 12, 2019 9:49 pm

Does anyone know whether my very simple procedure would work (ummm, I mean work CORRECTLY)?
No one has ever mentioned doing it that way (in the past
few years of threads I read before posting today, as I said). And no one in this thread referred to what I hoped to do (other than the
second respondent stating that there's "no need" for it). It seems that my hoped-for method would be the simplest and fastest: it
would take one minute to transfer from hsabank to fidelity cma (linkage already set up), and, once I establish the
hsa at Fid., it would probably take one minute to transfer the $ from fid. cma to fid. hsa. But.....I just don't know about the "characterization"/"coding"/etc. issues. I assume noone on this board has fid-cma already linked up with their non-fidelity
hsa account, so.....noone ever thought of doing it this way.

cas
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Re: Hsabank to fidelity-HSA

Post by cas » Thu Jun 13, 2019 5:55 am

Jyb33 wrote:
Wed Jun 12, 2019 9:49 pm
Does anyone know whether my very simple procedure would work (ummm, I mean work CORRECTLY)?
[ . . .] It seems that my hoped-for method would be the simplest and fastest: it
would take one minute to transfer from hsabank to fidelity cma (linkage already set up),
I don't have any personal experience with either end of the HSAbank -> Fidelity CMA transfer. But ... are you going to run into the $2500/day online transfer limit that people have reported existing for HSAbank? If so, that will be major problems:
Spirit Rider wrote:
Tue Dec 11, 2018 6:07 pm

[. . .]
lstone19 wrote:
Tue Dec 11, 2018 2:02 pm
Bigger pain is their [HSA Bank's] $2,500 / day limit to on-line distribution requests. So it's taking seven days for me to get it all out after which I'll write a check to Fidelity

[. . .]
[ . . .]

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.
Source: Particularly relevant snipets pulled from the thread "reasons to avoid in indirect HSA rollover?" (which is a much longer thread, worth reading in its entirely if you are contemplating an indirect rollover ... make sure to read the whole thing, since people's opinions on what the IRS really requires change part way through.) viewtopic.php?t=266089#p4254006
and, once I establish the
hsa at Fid., it would probably take one minute to transfer the $ from fid. cma to fid. hsa. But.....I just don't know about the "characterization"/"coding"/etc. issues.
I don't know what would happen, but it would be my concern, too, that an electronic transfer would run the risk of it being coded as a contribution rather than a 60-day rollover. That potential problem could probably be worked around, either by using the "paper check filled out to Fidelity HSA specs plus Fidelity deposit slip with 60-day rollover box marked" method discussed in the long Fidelity HSA transfer thread (viewtopic.php?f=10&t=263661) or with a phone call with Fidelity to check procedures ahead of time.

Also perhaps worth mentioning: most people didn't do any sort of HSA transfer to Fidelity until 2019, since the individual HSA accounts weren't available until late November 2018. That means that it will be 2020 (probably May 2020) before anybody who did a 60-day rollover gets the key Form 5498 that requires Fidelity to properly code the indirect rollover. So it will be 2020 before the forums get definite reports back on whether Fidelity handles coding on any particular method of indirect rollover flawlessly or not.

But ... My bigger concern would the first issue with perhaps running into a snag with HSA Bank letting you pull all the assets out in one shot.
Last edited by cas on Thu Jun 13, 2019 7:35 am, edited 1 time in total.

Daryl
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Location: Malvern, PA (I like to sleep near my money!)

Re: Hsabank to fidelity-HSA

Post by Daryl » Thu Jun 13, 2019 6:14 am

There is a Fidelity office a half dozen miles from my apartment. I stopped by, emailed them a statement from the old account, and they took care of the rest. Transferring cash was quick, possibly a couple days. I believe they had free coffee.

terran
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Re: Hsabank to fidelity-HSA

Post by terran » Thu Jun 13, 2019 7:23 am

If you want to avoid the transfer fee from HSA Bank you'll need to do an indirect rollover. At least as of this spring when I did it, Fidelity doesn't have a way to indicate a rollover when transferring online, so you have to submit a contribution form with a check. So your process will work, but you'll have to write a check from your CMA account instead of submitting an online transfer request.

Topic Author
Jyb33
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Re: Hsabank to fidelity-HSA

Post by Jyb33 » Fri Jun 14, 2019 12:58 am

Thanks for the info everyone....
I'll have to decide if it's even worth moving such a small amount (under $6000) to a Fid. hsa,
as opposed to just withdrawing all of it from hsabank and closing it....and just paying the tax
(ord. income, since I'm old enough), since I don't have much use for an hsa anymore.

curmudgeon
Posts: 1789
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Re: Hsabank to fidelity-HSA

Post by curmudgeon » Fri Jun 14, 2019 1:20 am

Jyb33 wrote:
Fri Jun 14, 2019 12:58 am
Thanks for the info everyone....
I'll have to decide if it's even worth moving such a small amount (under $6000) to a Fid. hsa,
as opposed to just withdrawing all of it from hsabank and closing it....and just paying the tax
(ord. income, since I'm old enough), since I don't have much use for an hsa anymore.
You can use it for medicare premiums, or dental expenses without paying income tax on it. If you had to keep paying HSAbank fees, I would lean towards the withdrawal side, but since you already have a fidelity account, the HSA would integrate pretty easily there and avoid the fees.

Topic Author
Jyb33
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Joined: Tue Mar 26, 2019 7:42 pm

Re: Hsabank to fidelity-HSA

Post by Jyb33 » Fri Jun 14, 2019 11:28 pm

It looks like HSAbank doesn't even allow transferring "non-medical-expense" money to my Fid.CMA account. I was thinkng of moving all
of the money there (to close the account), and then either go into a Fid. office and fill out the forms to create a Fid.HSA (and fund
it with the new money in fid.cma) or.....just downloading the forms from fid ...etc. etc. I'm assuming this is whats called an "indirect
rollover" ????(and has to be done within 60 days???). But when I logged into hsabank, I just remembered that
it requires one to choose an "expense category", with
about 5 choices (medical, dental, insur.premium, and OTHER). I don't think choosing "other" would be correct (since it means "other expense")
.....and HSABANK would notify the IRS i withdrew money for an eligible expense, regardless of what i chose......??????? And there's no choice of "move money out to just close the account".........I wanted to do that to possibly avoid the close-fee.

terran
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Re: Hsabank to fidelity-HSA

Post by terran » Sat Jun 15, 2019 7:33 am

Yes, you should just select "other" and make the transfer. That's what I did and the 1099 SA Box 3 has code 1. Here's what the 1099 SA instructions say about Box 3, code 1:
1—Normal distributions
Use this code for normal distributions to the account holder and any direct payments to a medical service provider. Use this code if no other code applies. Also, see Distribution after year of death, earlier.
I would say this is sufficiently non-specific to cover the case of an indirect rollover. There is no other code listed that would apply better. My understanding is that the source of an indirect rollover doesn't report the rollover, but it is important that the destination of the rollover report the rollover. This is why you need to submit a form to Fidelity with the rollover check indicating that the contribution is a rollover.

When you file form 8880 with your 2019 taxes you'll also need to indicate the amount of the distribution and how much the distribution was used for qualified medical expense and how much was rolled over. Any amount not account for by either of those will be considered a non-qualified distribution and be subject to tax (and penalty if you weren't over 65).

standard7
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Re: Hsabank to fidelity-HSA

Post by standard7 » Sat Jun 15, 2019 2:11 pm

Jyb33-

Yup I was one of the people that responded about how easy it was to move from HSABank to Fidelity and avoided your topic about using the CMA and doing a rollover. I’m speaking for myself and not others but the point that I didn’t say was that it seems to be much easier to spend a couple minutes online to setup the HSA to HSA transfer and not have to deal with all the rest. And as far as I can see HSAbank has closed my account without any closing fees. And other than the initial setup there was nothing else I needed to do but wait for the transfer to complete.

If you remove the unnecessary complexity of the rollover you may find that your initial idea of moving it to Fidelity and keeping everything under one roof is still a good idea.

Topic Author
Jyb33
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Joined: Tue Mar 26, 2019 7:42 pm

Re: Hsabank to fidelity-HSA

Post by Jyb33 » Sun Jun 16, 2019 10:25 pm

Thanks.............I think I'm just going to do a direct transfer (not rollover) even though they WILL charge a closing fee,
mainly because of the $2500 daily
transfer limit to get $ into my FID.CMA account (as the CAS person noted above), so I'd have to login to hsabank everyday for 3 days and transfer $...and
then wait for it to arrive...which isn't worth the trouble...
terran wrote:
Sat Jun 15, 2019 7:33 am
Yes, you should just select "other" and make the transfer. That's what I did and the 1099 SA Box 3 has code 1. Here's what the 1099 SA instructions say about Box 3, code 1:
1—Normal distributions
Use this code for normal distributions to the account holder and any direct payments to a medical service provider. Use this code if no other code applies. Also, see Distribution after year of death, earlier.
I would say this is sufficiently non-specific to cover the case of an indirect rollover. There is no other code listed that would apply better. My understanding is that the source of an indirect rollover doesn't report the rollover, but it is important that the destination of the rollover report the rollover. This is why you need to submit a form to Fidelity with the rollover check indicating that the contribution is a rollover.

When you file form 8880 with your 2019 taxes you'll also need to indicate the amount of the distribution and how much the distribution was used for qualified medical expense and how much was rolled over. Any amount not account for by either of those will be considered a non-qualified distribution and be subject to tax (and penalty if you weren't over 65).
Last edited by Jyb33 on Mon Jun 17, 2019 1:50 am, edited 1 time in total.

Topic Author
Jyb33
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Re: Hsabank to fidelity-HSA

Post by Jyb33 » Mon Jun 17, 2019 12:29 am

But....why is Fidelity (online, after creating the HSA) requiring me to print and mail in the pre-filled online TOA form?
Most people here say they did EVERYTHING online (most respondents above didn't mention MAILING at all )
More specifically, Fid's online system filled out a TOA based on all the info. I gave it, and then says: Your next step is to print...
and mail...... with no other options...
p.s. I categorized hsabank as a "bank" on Fid's website (when it asked me type of institution)...I assume that's correct..

standard7
Posts: 104
Joined: Thu Jul 30, 2015 9:39 am

Re: Hsabank to fidelity-HSA

Post by standard7 » Mon Jun 17, 2019 6:08 am

>I think I'm just going to do a direct transfer

Do you mean that you are still sending the money to your CMA or an HSA account linked to your CMA, essentially 2 accounts?

I setup an HSA at FID then chose the transfer tab and indicated HSA bank as the source (yes as a bank). Completed the fields and then uploaded a recent statement. The rest was handled by Fidelity. The amount was more than $2500 and I never needed to contact HSABank. I just completed the same task for my wife all went smoothly. And I have yet to be contacted by HSAbank about a closing fee so I assume that this won’t happen since the account was closed with a zero balance after Fidelity completed the transfer. Sorry it’s not going well maybe you can reach out to support at Fidelity?

cas
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Re: Hsabank to fidelity-HSA

Post by cas » Mon Jun 17, 2019 6:13 am

Jyb33 wrote:
Sun Jun 16, 2019 10:25 pm
Thanks.............I think I'm just going to do a direct transfer (not rollover) even though they WILL charge a closing fee,
mainly because of the $2500 daily
transfer limit to get $ into my FID.CMA account (as the CAS person noted above), so I'd have to login to hsabank everyday for 3 days and transfer $...and
then wait for it to arrive...which isn't worth the trouble...
Sounds like you have decided not to do the "withdraw $2500-for-3-days" approach, but just to emphasize:

DO NOT make multiple withdrawals from your HSAbank account!

Someone else on another thread tried to do this withdraw-$2500-over-multiple-days approach, and this is what SpiritRider said to them:
Spirit Rider wrote:
Tue Dec 11, 2018 6:07 pm
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 [subject to 6% excise tax per year that the excess remains in the HSA account] if not removed.
Source: Boglehead's thread "reasons to avoid in indirect HSA rollover?" viewtopic.php?t=266089#p4254006

standard7
Posts: 104
Joined: Thu Jul 30, 2015 9:39 am

Re: Hsabank to fidelity-HSA

Post by standard7 » Mon Jun 17, 2019 6:22 am

I’m lost... I must have missed something. I don’t understand the need for the rollover in this situation or anything other than the HSA to HSA transfer which seemed to avoid all of the problems.

curmudgeon
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Re: Hsabank to fidelity-HSA

Post by curmudgeon » Mon Jun 17, 2019 10:12 am

Jyb33 wrote:
Mon Jun 17, 2019 12:29 am
But....why is Fidelity (online, after creating the HSA) requiring me to print and mail in the pre-filled online TOA form?
Most people here say they did EVERYTHING online (most respondents above didn't mention MAILING at all )
More specifically, Fid's online system filled out a TOA based on all the info. I gave it, and then says: Your next step is to print...
and mail...... with no other options...
p.s. I categorized hsabank as a "bank" on Fid's website (when it asked me type of institution)...I assume that's correct..
It is confusing, BUT, it is possible to fill out the form (and sign it, with the mouse), all online. My memory is that you take the next step as if you are going to print it, and then there is the option to upload the form instead of USPS mail.

Topic Author
Jyb33
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Re: Hsabank to fidelity-HSA

Post by Jyb33 » Mon Jun 17, 2019 11:38 am

Thanks for the warning (which I think you also mentioned earlier) about "the first $2500".........and I just saw that thread. But
I don't see where "spirit rider" got his info. from, and I don't see anyone else confirming it . He
may be right, but I looked through some of the IRS pubs. cited in that thread (in relation to OTHER issues), and I don't see anything about this particular issue.

cas wrote:
Mon Jun 17, 2019 6:13 am
Jyb33 wrote:
Sun Jun 16, 2019 10:25 pm
Thanks.............I think I'm just going to do a direct transfer (not rollover) even though they WILL charge a closing fee,
mainly because of the $2500 daily
transfer limit to get $ into my FID.CMA account (as the CAS person noted above), so I'd have to login to hsabank everyday for 3 days and transfer $...and
then wait for it to arrive...which isn't worth the trouble...
Sounds like you have decided not to do the "withdraw $2500-for-3-days" approach, but just to emphasize:

DO NOT make multiple withdrawals from your HSAbank account!

Someone else on another thread tried to do this withdraw-$2500-over-multiple-days approach, and this is what SpiritRider said to them:
Spirit Rider wrote:
Tue Dec 11, 2018 6:07 pm
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 [subject to 6% excise tax per year that the excess remains in the HSA account] if not removed.
Source: Boglehead's thread "reasons to avoid in indirect HSA rollover?" viewtopic.php?t=266089#p4254006

terran
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Re: Hsabank to fidelity-HSA

Post by terran » Mon Jun 17, 2019 11:45 am

Jyb33 wrote:
Mon Jun 17, 2019 11:38 am
Thanks for the warning (which I think you also mentioned earlier) about "the first $2500".........and I just saw that thread. But
I don't see where "spirit rider" got his info. from, and I don't see anyone else confirming it . He
may be right, but I looked through some of the IRS pubs. cited in that thread (in relation to OTHER issues), and I don't see anything about this particular issue.
Spirit Rider is a very well informed poster on this forum (perhaps one of the most well informed when it comes to tax and specialized account rules). I would want to a see a very reliable source making a very clear assertion to the contrary before I took an action not in alignment with his/her recommendations.

I think the issue is that you can one make one such indirect rollover per 12 month period (this should be easy to confirm if you feel so inclined). So the question becomes whether the rollover is the act of withdrawing from the source HSA or of depositing in the destination HSA. Spirit Rider seems to be saying it's the former (or at least some combination including the former) which means each withdrawal would become a separate rollover, only the first of which is allowed.

cas
Posts: 606
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Re: Hsabank to fidelity-HSA

Post by cas » Mon Jun 17, 2019 12:14 pm

Jyb33 wrote:
Mon Jun 17, 2019 11:38 am
I don't see where "spirit rider" got his info. from, and I don't see anyone else confirming it . He
may be right, but I looked through some of the IRS pubs. cited in that thread (in relation to OTHER issues), and I don't see anything about this particular issue.
Hmm ... Are you coming up with a different interpretation of the specific clauses that SpiritRider cites/quotes?
Spirit Rider wrote:
Wed Dec 12, 2018 1:01 am
You acknowledge that 26 U.S. Code § 223 - Health savings accounts, (f) Tax treatment of distributions, (5) Rollover contribution, A and B; is clear that the 1-year period limitation is on the distribution and not on the contribution and is entirely consistent with 26 U.S. Code § 408 - Individual retirement accounts, (d) Tax treatment of distributions, (3) Rollover contribution A and B. They both are unambiguous.

The IRA and HSA code sections are virtually identical and IRAs have 29 more years of established precedent. The fact that it is the distribution and not the contribution is well established. Here is the language from IRS Publication 590-A, which is far more precise than the language from Publication 969.

Waiting period between rollovers. Generally, if you make a tax-free rollover of any part of a distribution from a traditional IRA, you can’t, within a 1-year period, make a tax-free rollover of any later distribution from that same IRA. You also can’t make a tax-free rollover of any amount distributed, within the same 1-year period, from the IRA into which you made the tax-free rollover. The 1-year period begins on the date you receive the IRA distribution, not on the date you roll it over into an IRA. Rules apply to the number of rollovers you can have with your traditional IRAs. See Application of one-rollover-per-year limitation below.

However, I agree with you that the language in Publication 969 is ambiguous if not downright misleading. I also 100% support your view that this is; "the result of a mistake of fact due to a reasonable cause." and eligible to be returned as mistaken distributions.

In any case, SpiritRider (and Alan S., who SpiritRider cites) are the experts, not me. You might get their direct input if you revived that thread where the whole "Does distribution or contribution determine an instance of an indirect rollover?" issue was thrashed out. ( viewtopic.php?t=266089#p4254607 )

engineerbme
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Re: Hsabank to fidelity-HSA

Post by engineerbme » Mon Jun 17, 2019 2:01 pm

not trying to hijack OP's thread but in similar situation...

i have an employer contributed HDHP into HSA Bank...would like to transfer over to Fidelity HSA...

googling the forums has led me to believe that the following method will not flag any tax violations:
hsabank -> TD Amertitrade investing option (opened within HSAbank site) -> Fidelity HSA (directly pull after uploading TD Ameritrade statement to link accounts)

Is this a fee-free method to move my funds over to Fidelity's HSA without incurring any fees or tax penalities? I just want to have a more flexible HSA account, and would do the transfers every so often. Is there a limitation on # of transactions I can do this if pulling brokerage to brokerage account?

Thanks!

Topic Author
Jyb33
Posts: 18
Joined: Tue Mar 26, 2019 7:42 pm

Re: Hsabank to fidelity-HSA

Post by Jyb33 » Mon Jun 17, 2019 4:18 pm

I was only focusing on a possible issue with "the first $2500".....and didn't see any mention of that dollar amount, in a quick search of the IRS pubs......
But..it turns out, I'm realizing, the issue they were debating is not really about any particular dollar amount....and it has to do with broader issues, related to number (and definition) of distributions/contributions/rollovers.....so....I'm sure he's right....I didn't bother to continue reading any more of that....since I decided not to do a "rollover"...

quote=cas post_id=4598102 time=1560791691 user_id=120437]
Jyb33 wrote:
Mon Jun 17, 2019 11:38 am
I don't see where "spirit rider" got his info. from, and I don't see anyone else confirming it . He
may be right, but I looked through some of the IRS pubs. cited in that thread (in relation to OTHER issues), and I don't see anything about this particular issue.
Hmm ... Are you coming up with a different interpretation of the specific clauses that SpiritRider cites/quotes?
Spirit Rider wrote:
Wed Dec 12, 2018 1:01 am
You acknowledge that 26 U.S. Code § 223 - Health savings accounts, (f) Tax treatment of distributions, (5) Rollover contribution, A and B; is clear that the 1-year period limitation is on the distribution and not on the contribution and is entirely consistent with 26 U.S. Code § 408 - Individual retirement accounts, (d) Tax treatment of distributions, (3) Rollover contribution A and B. They both are unambiguous.

The IRA and HSA code sections are virtually identical and IRAs have 29 more years of established precedent. The fact that it is the distribution and not the contribution is well established. Here is the language from IRS Publication 590-A, which is far more precise than the language from Publication 969.

Waiting period between rollovers. Generally, if you make a tax-free rollover of any part of a distribution from a traditional IRA, you can’t, within a 1-year period, make a tax-free rollover of any later distribution from that same IRA. You also can’t make a tax-free rollover of any amount distributed, within the same 1-year period, from the IRA into which you made the tax-free rollover. The 1-year period begins on the date you receive the IRA distribution, not on the date you roll it over into an IRA. Rules apply to the number of rollovers you can have with your traditional IRAs. See Application of one-rollover-per-year limitation below.

However, I agree with you that the language in Publication 969 is ambiguous if not downright misleading. I also 100% support your view that this is; "the result of a mistake of fact due to a reasonable cause." and eligible to be returned as mistaken distributions.

In any case, SpiritRider (and Alan S., who SpiritRider cites) are the experts, not me. You might get their direct input if you revived that thread where the whole "Does distribution or contribution determine an instance of an indirect rollover?" issue was thrashed out. ( viewtopic.php?t=266089#p4254607 )
[/quote]

Topic Author
Jyb33
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Joined: Tue Mar 26, 2019 7:42 pm

Re: Hsabank to fidelity-HSA

Post by Jyb33 » Mon Jun 17, 2019 4:20 pm

The only advantage I know of at this point is to save $25 closing fee.
standard7 wrote:
Mon Jun 17, 2019 6:22 am
I’m lost... I must have missed something. I don’t understand the need for the rollover in this situation or anything other than the HSA to HSA transfer which seemed to avoid all of the problems.

Topic Author
Jyb33
Posts: 18
Joined: Tue Mar 26, 2019 7:42 pm

Re: Hsabank to fidelity-HSA

Post by Jyb33 » Mon Jun 17, 2019 4:21 pm

you're right
curmudgeon wrote:
Mon Jun 17, 2019 10:12 am
Jyb33 wrote:
Mon Jun 17, 2019 12:29 am
But....why is Fidelity (online, after creating the HSA) requiring me to print and mail in the pre-filled online TOA form?
Most people here say they did EVERYTHING online (most respondents above didn't mention MAILING at all )
More specifically, Fid's online system filled out a TOA based on all the info. I gave it, and then says: Your next step is to print...
and mail...... with no other options...
p.s. I categorized hsabank as a "bank" on Fid's website (when it asked me type of institution)...I assume that's correct..
It is confusing, BUT, it is possible to fill out the form (and sign it, with the mouse), all online. My memory is that you take the next step as if you are going to print it, and then there is the option to upload the form instead of USPS mail.

Topic Author
Jyb33
Posts: 18
Joined: Tue Mar 26, 2019 7:42 pm

Re: Hsabank to fidelity-HSA

Post by Jyb33 » Mon Jun 17, 2019 4:24 pm

And the dollar amounts that ended up with Fidelity did not reflect a $25 deduction for the fee?

standard7 wrote:
Mon Jun 17, 2019 6:08 am
>I think I'm just going to do a direct transfer

Do you mean that you are still sending the money to your CMA or an HSA account linked to your CMA, essentially 2 accounts?

I setup an HSA at FID then chose the transfer tab and indicated HSA bank as the source (yes as a bank). Completed the fields and then uploaded a recent statement. The rest was handled by Fidelity. The amount was more than $2500 and I never needed to contact HSABank. I just completed the same task for my wife all went smoothly. And I have yet to be contacted by HSAbank about a closing fee so I assume that this won’t happen since the account was closed with a zero balance after Fidelity completed the transfer. Sorry it’s not going well maybe you can reach out to support at Fidelity?

Nummerkins
Posts: 323
Joined: Tue Jun 01, 2010 4:41 pm

Re: Hsabank to fidelity-HSA

Post by Nummerkins » Mon Jun 17, 2019 4:44 pm

I would just do a rollover. Call Fidelity and they will tell you exactly what to do. I think you are making this too confusing for yourself!

standard7
Posts: 104
Joined: Thu Jul 30, 2015 9:39 am

Re: Hsabank to fidelity-HSA

Post by standard7 » Mon Jun 17, 2019 7:27 pm

And the dollar amounts that ended up with Fidelity did not reflect a $25 deduction for the fee?
I just checked and it doesn't show up as a fee anywhere on the HSAbank or FID statements but it appears that there was a $25 difference from the final statement and the amount deposited in Fidelity.

Still... no worries, I'm moving to Fidelity for ease of use and didn't want to bother with TDA, so I'm happy with the move and $25 isn't a deal breaker.
Call Fidelity and they will tell you exactly what to do.
I agree.

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