[Fidelity Health Savings Account Mega-Thread]

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TdF fan
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by TdF fan »

engineerbme wrote: Wed Feb 05, 2020 9:32 am I tried searching and trying to answer my question but didn't have much success.

My employer uses HSA Bank exclusively to make my HSA contributions. At one point I was able to create an investment TdAmeritrade account through HSA Bank and then did a direct transfer over to my Fidelity HSA. This force closed my TdAmeritrade account, and effectively kept the HSA Bank account rolling.

Since I cannot change where the allocations and contributions go to every month, my HSA Bank continues to accumulate but I have no real understanding of how I can transfer these funds on a semi annual or quarterly, or whatever frequency basis over to my Fidelity HSA.

Could someone please ELI5 to me? Thank you!
I don't know if HSA Bank charges for a direct transfer, but here are two links from the Finance Buff that show how to do a indirect rollover to Fidelity:
https://thefinancebuff.com/how-to-rollo ... r-fee.html
https://thefinancebuff.com/best-hsa-pro ... money.html

He does ELI5 well. :)
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by engineerbme »

Spirit Rider wrote: Wed Feb 05, 2020 10:31 am You can only do one free 60-day indirect HSA rollover per 12 month period.

You can do as many trustee -> trustee transfers as you want and HSA Bank allows. Many HSA custodians charge a $20-$25 fee for such transfers, some charge no fee. I do not know what HSA bank charges, but am sure many others do.
i got the following response from HSA Bank "To transfer a portion of this account to your other HSA Account, you'll simply need to contact the new bank and tell them you have an HSA Account here and that you'd like to transfer part of the account to them, there. They will get you their transfer form and instruct you from there; There are no fees from HSA Bank, but please ensure that the transfer form you use indicates in writing that you would like to keep this account open. You can hand write this on the form before you submit it"

does Fidelity have such a form I'm guessing?
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by Horsefly »

engineerbme wrote: Wed Feb 05, 2020 12:57 pm does Fidelity have such a form I'm guessing?
https://www.fidelity.com/customer-servi ... fer-assets
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Re: [Fidelity Health Savings Accounts Mega-Thread]

Post by LadyGeek »

LadyGeek wrote: Tue Jan 21, 2020 9:09 pm Good idea. My transfer's expected completion date is 02/05/20.

This thread has been on-going since Nov 11, 2018. I figured it was about time to change the thread title, so I did.

Update 1/22/2020: Fixed a spelling typo in the thread title "Accounts" to "Account".
A few days late, but the funds transferred from UMB Bank have showed up in my Fidelity account.

I don't see the termination fee covered, but I'll wait a day or so to see if anything shows up before calling them.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by H-Dog »

Here is another data point. It is an ongoing transfer that has not been completed.

I am moving assets from Health Equity to Fidelity:

1/3 - Sold all my total market index fund at Health Equity
1/7 - HSA transfer request initiated with Fidelity. Expected transfer completion date 2/4/2020
1/7 - Called Fidelity and uploaded the transfer request via their secure messaging
1/13 - Fidelity has sent the request to Health Equity
1/23 - I called Fidelity & we conferenced in Health Equity as there was no progress on the transfer. They were sorting things out. Health Equity was not seeing asset transfer requests on their end.
2/4 - I called Fidelity again as this is the original date of completion per Fidelity. Conference call with Fidelity and Health Equity for status and get them moved along. Health Equity CSR was not very helpful but "escalated" the transfer. Promised a follow up but no follow up.
2/18 - I called Fidelity & Health Equity. Fidelity said they are pending docs from Health Equity. Health Equity said they are pending a transfer request from Fidelity. I put in a new request with Health Equity who said that funds will be send electronically within a few business days. Promised a follow up but no follow up.
2/21 - I followed up. Health Equity said that a check will be mailed out on 2/27. They said that funds cannot be sent electronically outside of Health Equity which is different than what they told me on 2/18. I offered to pick up the check in person (Health Equity is in the same city where I live) but they said it cannot be done.
tman389
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by tman389 »

I recently moved my HSA from Health Equity to Fidelity. The process went fairly smooth but slow. I sold the HE investments on Dec 24 and created the HSA account in Fidelity, mailing the Asset Transfer form to their Cincinnati address. My HE account showed that a check had been mailed to Fidelity on January 10th and it was cashed on January 21st. The funds showed up in the Fidelity HSA on January 21 also. And as others have noted here, HE charged me a $25 account termination fee.
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Pam01 »

manatee2005 wrote: Thu Jan 30, 2020 11:42 am
jbmitt wrote: Thu Jan 30, 2020 11:38 am
manatee2005 wrote: Wed Jan 29, 2020 2:57 am
jbmitt wrote: Sun Nov 11, 2018 5:29 pm I hope this is true. I’ll roll my HSA funds over from Optum. I’m all for having fewer accounts to keep track of.
Did you ever end up doing it?
Yep. I rolled mine and my wife's accounts over. It was somewhat slow, but we use Fidelity for everything. I've been very happy with one less account out there.
Thanks, I just created the account and kicked off the transfer last night. It says it will take 2 weeks.
I did a 60-day rollover rather than a transfer. The entire process took 3 business days. Two days for funds to transfer from investment account to Optum HSA account after sale, 1 day to transfer to my bank and deposit check to Fidelity HSA the same day. The funds were available the same day in Fidelity HSA for investment. No transfer fee from Optum and the deposit in Fidelity HSA is coded as 60-day rollover.
Last edited by Pam01 on Fri Feb 21, 2020 8:34 pm, edited 1 time in total.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by snailderby »

H-Dog wrote: Fri Feb 21, 2020 3:41 pm Here is another data point. It is an ongoing transfer that has not been completed.

I am moving assets from Health Equity to Fidelity:

1/3 - Sold all my total market index fund at Health Equity
1/7 - HSA transfer request initiated with Fidelity. Expected transfer completion date 2/4/2020
1/7 - Called Fidelity and uploaded the transfer request via their secure messaging
1/13 - Fidelity has sent the request to Health Equity
1/23 - I called Fidelity & we conferenced in Health Equity as there was no progress on the transfer. They were sorting things out. Health Equity was not seeing asset transfer requests on their end.
2/4 - I called Fidelity again as this is the original date of completion per Fidelity. Conference call with Fidelity and Health Equity for status and get them moved along. Health Equity CSR was not very helpful but "escalated" the transfer. Promised a follow up but no follow up.
2/18 - I called Fidelity & Health Equity. Fidelity said they are pending docs from Health Equity. Health Equity said they are pending a transfer request from Fidelity. I put in a new request with Health Equity who said that funds will be send electronically within a few business days. Promised a follow up but no follow up.
2/21 - I followed up. Health Equity said that a check will be mailed out on 2/27. They said that funds cannot be sent electronically outside of Health Equity which is different than what they told me on 2/18. I offered to pick up the check in person (Health Equity is in the same city where I live) but they said it cannot be done.
That sounds frustrating!
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by sperry8 »

I know Fidelity moved to no commissions/fees for ETFs and their funds (if we invest our HSA funds). But is there still a $75 fee for any mutual fund investment (via our Fido HSA)?
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by jeffyscott »

Some have transaction fees, but there are many NTF mutual funds at Fidelity.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by terran »

Did another Optum to Fidelity 60 day rollover again this year. 3/16 requested reimbursement from Optum, 3/17 received reimbursement in checking account and mailed rollover contribution form with check to Fidelity, 3/20 deposit made to Fidelity, 3/23 withdrawal made from checking account. Easy process all the way around now that everything is already set up. Have a calendar reminder to do the same next year.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by sperry8 »

jeffyscott wrote: Mon Mar 23, 2020 1:00 pm Some have transaction fees, but there are many NTF mutual funds at Fidelity.
Where do I find a list of these NTF funds?

Is this the total list available? https://www.bogleheads.org/wiki/Fidelity
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by jeffyscott »

sperry8 wrote: Wed Apr 08, 2020 8:32 am
jeffyscott wrote: Mon Mar 23, 2020 1:00 pm Some have transaction fees, but there are many NTF mutual funds at Fidelity.
Where do I find a list of these NTF funds?

Is this the total list available? https://www.bogleheads.org/wiki/Fidelity
I'd just use Fidelity's MF screener, with the NTF box checked: https://www.fidelity.com/fund-screener/research.shtml
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sperry8
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by sperry8 »

jeffyscott wrote: Wed Apr 08, 2020 8:43 am
sperry8 wrote: Wed Apr 08, 2020 8:32 am
jeffyscott wrote: Mon Mar 23, 2020 1:00 pm Some have transaction fees, but there are many NTF mutual funds at Fidelity.
Where do I find a list of these NTF funds?

Is this the total list available? https://www.bogleheads.org/wiki/Fidelity
I'd just use Fidelity's MF screener, with the NTF box checked: https://www.fidelity.com/fund-screener/research.shtml
Exactly what I needed. I see here numerous fund with load are load waived and NTF as well. Lovely! Quick question, as Flagship with VG do they also provide this? (That is, no load waived, no fee funds) that are outside the Vanguard universe?
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by jeffyscott »

sperry8 wrote: Wed Apr 08, 2020 10:57 am
jeffyscott wrote: Wed Apr 08, 2020 8:43 am
sperry8 wrote: Wed Apr 08, 2020 8:32 am
jeffyscott wrote: Mon Mar 23, 2020 1:00 pm Some have transaction fees, but there are many NTF mutual funds at Fidelity.
Where do I find a list of these NTF funds?

Is this the total list available? https://www.bogleheads.org/wiki/Fidelity
I'd just use Fidelity's MF screener, with the NTF box checked: https://www.fidelity.com/fund-screener/research.shtml
Exactly what I needed. I see here numerous fund with load are load waived and NTF as well. Lovely! Quick question, as Flagship with VG do they also provide this? (That is, no load waived, no fee funds) that are outside the Vanguard universe?
I don't know. IIRC, Vanguard has their own fund screener somewhere and/or a list of NTF funds. I have never had anything but Vanguard funds at Vanguard, but my general impression is that they offer fewer NTF funds than Fidelity or Schwab and are less likely to have things like reduced minimums or waived loads for outside funds. And I'm not aware of any difference in that regard for Flagship, but have never had a reason to look into it either.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by mroe800 »

You need minimum $500K Vanguard assets to begin seeing lower cost trades on TF funds: https://investor.vanguard.com/investing ... tual-funds
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by LadyGeek »

I just retired and transferred my employer's HSA from PNC Bank to Fidelity. I filled out the Transfer of Assets form and attached a copy of the latest statement. No Medallion signature is needed.

The time from mailing the form to the funds showing in the account was less than 2 weeks.

I was impressed, as the transaction history included a scanned image of the check. Vanguard doesn't do that.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by isubrama »

LadyGeek wrote: Tue Jun 09, 2020 8:47 am I just retired and transferred my employer's HSA from PNC Bank to Fidelity. I filled out the Transfer of Assets form and attached a copy of the latest statement. No Medallion signature is needed.

The time from mailing the form to the funds showing in the account was less than 2 weeks.

I was impressed, as the transaction history included a scanned image of the check. Vanguard doesn't do that.
I did the same thing. And don't forget to close the PNC Bank account.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by 1789 »

Folks,
Are you able to automate your HSA contributions to any Fidelity mutual funds or does it have to be one of the default options in the plan? For eg: My plan has FXAIX as one of default funds and i can automate it, but when i select other funds tab it seems i can invest in FSKAX but it doesn’t let me automatically invest future contrived to this fund. Anyone has a similar issue?
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by lstone19 »

1789 wrote: Tue Jun 09, 2020 7:34 pm Folks,
Are you able to automate your HSA contributions to any Fidelity mutual funds or does it have to be one of the default options in the plan? For eg: My plan has FXAIX as one of default funds and i can automate it, but when i select other funds tab it seems i can invest in FSKAX but it doesn’t let me automatically invest future contrived to this fund. Anyone has a similar issue?
Sounds like your Fidelity HSA is an employer-sponsored HSA so that’s probably up to what your employer has requested in the plan. Most of us (AFAIK) using Fidelity for an HSA have opened standalone HSAs there independent of any employer-sponsored HSA.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by 1789 »

lstone19 wrote: Tue Jun 09, 2020 7:57 pm
1789 wrote: Tue Jun 09, 2020 7:34 pm Folks,
Are you able to automate your HSA contributions to any Fidelity mutual funds or does it have to be one of the default options in the plan? For eg: My plan has FXAIX as one of default funds and i can automate it, but when i select other funds tab it seems i can invest in FSKAX but it doesn’t let me automatically invest future contrived to this fund. Anyone has a similar issue?
Sounds like your Fidelity HSA is an employer-sponsored HSA so that’s probably up to what your employer has requested in the plan. Most of us (AFAIK) using Fidelity for an HSA have opened standalone HSAs there independent of any employer-sponsored HSA.
Yes employer based plan. Thanks for your response
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by LadyGeek »

isubrama wrote: Tue Jun 09, 2020 7:25 pm I did the same thing. And don't forget to close the PNC Bank account.
Good point, thanks. The HSA benefits provider emailed me about that when they got the transfer request from Fidelity. I got the form emailed to me and I mailed it back the same day.

Otherwise, the plan would have been transferred from employer to individual and I'd have to start paying a maintenance fee.
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Kaymaza
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by Kaymaza »

Hi everyone so looks like there are other Optum employees here. I have an HSA w/ Optum through UMB Bank. I wanted to transfer this to Fidelity. My concern is that there are fees with maintaining the UMB account if there's insufficient funds. My employer contributes $500 a year so if I close the account I'm wondering if I'll miss out on the employer contribution for the following year? Also there's a transfer fee but I've heard that if you take the distribution as a check you have 60 days to deposit it into another HSA account and you can potentially avoid the transfer fee by going this route?
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by Spirit Rider »

Kaymaza wrote: Thu Jun 18, 2020 1:41 pm Also there's a transfer fee but I've heard that if you take the distribution as a check you have 60 days to deposit it into another HSA account and you can potentially avoid the transfer fee by going this route?
You can only do one indirect 60-day rollover per twelve (12) month period, but you can do unlimited trustee -> trustee transfers.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by Kaymaza »

Alright so I'm planning on doing an indirect rollover to a Fidelity HSA. For this year I did over contribute into my current HSA past the 2020 limit for single filers ($3550) by $208.82. Was wondering if during the indirect HSA rollover process, could I withdraw the entire amount $3758.82 into my personal checking account and just transfer the $3550 into the Fidelity HSA? Or should just rollover the entire thing $3758.82 into the Fidelity HSA?
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by jeffyscott »

If you want to remove the excess contributions, you have to do that via the proper procedure with the custodian. You can do that with either the current one or after the rollover, I assume.

The alternative would be to pay the penalty and taxes on the excess.

I think effectively withdrawing the funds by holding them back on the rollover does not accomplish anything, it's not going to be recorded as removing excess contributions. You might even create another problem, if the funds were not used for medical expenses.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by Spirit Rider »

Kaymaza wrote: Sat Jun 20, 2020 6:23 pm Alright so I'm planning on doing an indirect rollover to a Fidelity HSA. For this year I did over contribute into my current HSA past the 2020 limit for single filers ($3550) by $208.82. Was wondering if during the indirect HSA rollover process, could I withdraw the entire amount $3758.82 into my personal checking account and just transfer the $3550 into the Fidelity HSA? Or should just rollover the entire thing $3758.82 into the Fidelity HSA?
Most HSA custodians charge a $20 - $25 fee for the removal of the excess contributions and taxable earnings.

In your case, you would be much better off not removing the excess contributions, filing Form 5329 with your 2019 tax return and paying a $209 * 6% = $13 excise tax penalty. It will cost you less money, the excess contributions and the earnings stay in the HSA account and you don't pay taxes on those earnings.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by Spirit Rider »

jeffyscott wrote: Sat Jun 20, 2020 9:00 pm I think effectively withdrawing the funds by holding them back on the rollover does not accomplish anything, it's not going to be recorded as removing excess contributions. You might even create another problem, if the funds were not used for medical expenses.
This is correct.

If the amount withdrawn is not covered by qualified medical expenses, it would be a non-qualified withdrawal, subject to ordinary income taxes and a 20% non-qualified withdrawal penalty. It would not remove the excess contribution balance for 2019 and a 2019 6% excise tax would be due, but it would remove the excess contribution balance for 2020 and result in no excise tax due.

Unless you HSA custodian does not charge a $20 - $25 fee to remove excess contributions, take my advice from above. File a 2019 Form 5329, pay the 6% excise tax, reduce your 2020 contribution by the excess contribution balance, file a 2020 Form 5329 showing reconciliation of the excess contribution balance with available contribution space. The will be no 2020 excise tax and no need to file in the future unless you make another excess contribution that is not worth removing.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by Kaymaza »

Thanks again everyone. All really helpful information. I did speak with Fidelity and they told me that I can roll the $3758.82 over and withdraw the excess contribution without any fees. Does that sound correct? Just want to make I'm doing everything correctly in the eyes of the IRS.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by jeffyscott »

Spirit Rider wrote: Sat Jun 20, 2020 9:58 pm
Kaymaza wrote: Sat Jun 20, 2020 6:23 pm Alright so I'm planning on doing an indirect rollover to a Fidelity HSA. For this year I did over contribute into my current HSA past the 2020 limit for single filers ($3550) by $208.82. Was wondering if during the indirect HSA rollover process, could I withdraw the entire amount $3758.82 into my personal checking account and just transfer the $3550 into the Fidelity HSA? Or should just rollover the entire thing $3758.82 into the Fidelity HSA?
Most HSA custodians charge a $20 - $25 fee for the removal of the excess contributions and taxable earnings.

In your case, you would be much better off not removing the excess contributions, filing Form 5329 with your 2019 tax return and paying a $209 * 6% = $13 excise tax penalty. It will cost you less money, the excess contributions and the earnings stay in the HSA account and you don't pay taxes on those earnings.
Fidelity did not charge us anything to remove an excess contribution.

Our ridiculously tiny overage happened because I believed our credit union when they told me the 80 cents they had deposited for account verification purposes would be pulled back. I foolishly then immediately deposited the full allowable contribution and ended up with 80 cents extra because they did not pull it back. Fidelity removed it and sent us a check for 81 or 82 cents, IIRC.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by Spirit Rider »

I would have left the 82¢ in the account and done absolutely nothing.

The 6% excise tax penalty on a non-removed excess HSA contribution of 82¢ is 5¢ which would round down to $0. You wasted your and Fidelity's time.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by jhfenton »

jeffyscott wrote: Sun Jun 21, 2020 7:55 am Our ridiculously tiny overage happened because I believed our credit union when they told me the 80 cents they had deposited for account verification purposes would be pulled back. I foolishly then immediately deposited the full allowable contribution and ended up with 80 cents extra because they did not pull it back. Fidelity removed it and sent us a check for 81 or 82 cents, IIRC.
That's funny. :D I suspect that would not have shown up as a contribution, since it came from the financial institution, not from you or your employer. It was more like bonus interest. :beer
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by jeffyscott »

jhfenton wrote: Sun Jun 21, 2020 8:19 am
jeffyscott wrote: Sun Jun 21, 2020 7:55 am Our ridiculously tiny overage happened because I believed our credit union when they told me the 80 cents they had deposited for account verification purposes would be pulled back. I foolishly then immediately deposited the full allowable contribution and ended up with 80 cents extra because they did not pull it back. Fidelity removed it and sent us a check for 81 or 82 cents, IIRC.
That's funny. :D I suspect that would not have shown up as a contribution, since it came from the financial institution, not from you or your employer. It was more like bonus interest. :beer
I think I had thought or hoped that might be the case and may have even messaged Fidelity to find out, but it wasn't.

Checking account history now, they are shown as contributions, the two deposits are listed as:
PARTIC CONTR CURRENT HSA CONTRIBUTION
CURRENT YEAR CONTRIB (Cash)

I imagine we could have ignored and nothing would have happened. I did think that if only the two deposits had totaled to 49 cents or less, we could have ignored and listed annual contribution right at the limit on tax forms, with rounding to nearest dollar.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by jeffyscott »

Spirit Rider wrote: Sun Jun 21, 2020 8:14 am I would have left the 82¢ in the account and done absolutely nothing.

The 6% excise tax penalty on a non-removed excess HSA contribution of 82¢ is 5¢ which would round down to $0. You wasted your and Fidelity's time.
Well we did not know what we should do, asked Fidelity and did what they suggested/recommended.

Also, I just read that: "All excess contributions are subject to income tax and a 6% excise tax each year until corrected". So if that is correct, we would have had to file forms and track this pittance forever, even if doing so would never cost a penny that seems like more hassle than just getting it out immediately.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by Spirit Rider »

If there is no excise tax due (<= $8 excess contribution), you can simply reduce the next year's contribution by the excess amount. Presto, no more excess contribution.

If the IRS ever came calling which they are never going to do, because the failure to file penalty only applies to unpaid taxes of which there are none.

I'm all for tax compliance and if you would look at my collective posts you would see I tend to be a stickler for the rules. However, this is a clear case of no harm no foul.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by jeffyscott »

Spirit Rider wrote: Sun Jun 21, 2020 9:22 am If there is no excise tax due (<= $8 excess contribution), you can simply reduce the next year's contribution by the excess amount. Presto, no more excess contribution.

If the IRS ever came calling which they are never going to do, because the failure to file penalty only applies to unpaid taxes of which there are none.

I'm all for tax compliance and if you would look at my collective posts you would see I tend to be a stickler for the rules. However, this is a clear case of no harm no foul.
Ah, did not know that would be an option to just offset it the following year.

My recollection is vague, as this happened over a year ago, but I think Fidelity presented two options. I am guessing the second was to leave it and report as an excess contribution and I may have looked at that at the time and made the same mistake of thinking that we'd have to track it forever.

If I had known then what I do now, thanks to your comment, I would have just ignored it and then contributed $1 less the following year. That way it would only have been one year where I failed to report an excess. I had imagined ignoring would have meant committing that technical violation every year until we no longer had a balance.
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jhfenton
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by jhfenton »

jeffyscott wrote: Sun Jun 21, 2020 8:41 am
jhfenton wrote: Sun Jun 21, 2020 8:19 am
jeffyscott wrote: Sun Jun 21, 2020 7:55 am Our ridiculously tiny overage happened because I believed our credit union when they told me the 80 cents they had deposited for account verification purposes would be pulled back. I foolishly then immediately deposited the full allowable contribution and ended up with 80 cents extra because they did not pull it back. Fidelity removed it and sent us a check for 81 or 82 cents, IIRC.
That's funny. :D I suspect that would not have shown up as a contribution, since it came from the financial institution, not from you or your employer. It was more like bonus interest. :beer
I think I had thought or hoped that might be the case and may have even messaged Fidelity to find out, but it wasn't.

Checking account history now, they are shown as contributions, the two deposits are listed as:
PARTIC CONTR CURRENT HSA CONTRIBUTION
CURRENT YEAR CONTRIB (Cash)

I imagine we could have ignored and nothing would have happened. I did think that if only the two deposits had totaled to 49 cents or less, we could have ignored and listed annual contribution right at the limit on tax forms, with rounding to nearest dollar.
I see. It came from the credit union when Fidelity was your HSA custodian. It makes sense they would code it as a contribution. I was thinking that your credit union was the custodian at the time, but that doesn't make any sense. Your credit union wouldn't be verifying an ACH with itself.

I think there was one year that my wife and I ended up with a $0.01 HSA over contribution between our two employers.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by Spirit Rider »

jeffyscott wrote: Sun Jun 21, 2020 9:53 am Ah, did not know that would be an option to just offset it the following year.
Yes, this is how you treat an excess contribution that you do not remove and you have available HSA contribution space the next year.
  • File Form 5329 for 1st year; report the excess contribution, carry it over to the next year and pay the 6% excise tax.
  • Reduce your HSA contributions for the next year by the amount of the excess contribution.
  • File Form 5329 for next year; reconcile the carried over excess contribution balance with available contribution space, pay no excise tax and never have to file another Form 5329 for that excess contribution.
Jay Wiser
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by Jay Wiser »

My experience with an employer-provided HSA account at Mercer Marketplace (custodian: HealthcareBank). Mercer charges 0.0625% quarterly for money in investments. They charge a $15 fee for closing accounts. But no fee for distributions that keep the account open.

I created a new HSA account at Fidelity and asked them to transfer in from Mercer. 11 days later Mercer sent me a note that this request would have to originate using their own paperwork.

I filled out the "Mercer Marketplace Health Savings Account (HSA) Distribution Request Account Closure Form" and selected the option to Distribute Full Account Balance via Transfer. I submitted via secure email to Mercer (responding to a secure message they had sent me).

After the next payroll+employer contribution, my entire account (cash+investments) was withdrawn as a check. 13 days later the cash was shown as Pending at Fidelity, and I purchased my desired Institutional Premium target date fund.

So I wasted time requesting the pull from Fidelity, but would not have known the proper Mercer form to look for if I hadn't made the request. Hopefully this can help someone else.
stocknoob4111
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by stocknoob4111 »

I opened a Fidelity HSA and then tried to initiate the transfer from PNC bank but then reading all these horror stories I cancelled the transfer. What I intend to do now is to "push" the transfer from PNC to FIdelity using PNC's paperwork. I think that is the best way to do it rather than Fidelity trying to do a pull.
pinkpigh
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by pinkpigh »

danaht wrote: Fri Apr 19, 2019 1:54 pm
oko wrote: Mon Feb 04, 2019 12:09 pm Previously I asked a question about transferring from Optum to Fidelity and did not get any responses. So let me answer my own question: I did a transfer using the "pull" method at Fidelity from Optum bank. Here's what I experienced:

* Transfer is painfully slow. You need to print stuff, send it to Fidelity, and then they process and send it to Optum. Optum probably sits on it for a while and then actual money is transfered to Fidelity. The total process took about 25 days.

* Optum did NOT charge $20 for this. The transaction appears as "Transfer Distribution to Fidelity Investment" at Optum.
Good news - Fidelity recently made a change so that you do not need to send anything by mail or Fax when transferring from Optum . The Optum statement can now be attached as a PDF file to the electronic request. The process is still slow - but at least it's easier to do now. Also Optum does not appear to be charging some people for partial transfers. If Optum does not charge for this - I think this is a better option than a 60 day rollover because it's one less thing to deal with during tax time.
When I request a direct transfer from Fidelity side (pull money from Optum Bank), do I need to sell all my mutual funds first at Optum? or I can just request Fidelity to pull the entire balance from my Optum Bank HSA?
danaht
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by danaht »

pinkpigh wrote: Sun Aug 30, 2020 11:15 pm
danaht wrote: Fri Apr 19, 2019 1:54 pm
oko wrote: Mon Feb 04, 2019 12:09 pm Previously I asked a question about transferring from Optum to Fidelity and did not get any responses. So let me answer my own question: I did a transfer using the "pull" method at Fidelity from Optum bank. Here's what I experienced:

* Transfer is painfully slow. You need to print stuff, send it to Fidelity, and then they process and send it to Optum. Optum probably sits on it for a while and then actual money is transfered to Fidelity. The total process took about 25 days.

* Optum did NOT charge $20 for this. The transaction appears as "Transfer Distribution to Fidelity Investment" at Optum.
Good news - Fidelity recently made a change so that you do not need to send anything by mail or Fax when transferring from Optum . The Optum statement can now be attached as a PDF file to the electronic request. The process is still slow - but at least it's easier to do now. Also Optum does not appear to be charging some people for partial transfers. If Optum does not charge for this - I think this is a better option than a 60 day rollover because it's one less thing to deal with during tax time.
When I request a direct transfer from Fidelity side (pull money from Optum Bank), do I need to sell all my mutual funds first at Optum? or I can just request Fidelity to pull the entire balance from my Optum Bank HSA?
My guess is that you would have to sell the mutual funds first. If it was a stock or ETF - you can usually transfer in-kind - but mutual funds usually can't transfer. Give Fidelity a call and find out. I only had (and have) cash in my Optum account - so I never dealt with having to liquidate anything. I still keep $500 in the Optum account so that I don't get any monthly fees from Optum. I still transfer using the process above once a year into my Fidelity HSA from Optum.
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surtu
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by surtu »

I'm considering opening a new Fidelty HSA and doing an indirect rollover from my employer sponsored Optum Bank HSA. I plan to keep a small balance in the Optum HSA so I can keep it open and continue to receive employer contributions. I'd prefer to wait until January 2021 to actually perform the indirect rollover, but does it make sense to create the HSA account at Fidelity now so it's ready to go? Can I create the HSA account without funding it right away? In case it's relevant, I've never had any accounts with Fidelity so I'd be a completely new customer.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by manatee2005 »

surtu wrote: Tue Oct 20, 2020 6:14 pm I'm considering opening a new Fidelty HSA and doing an indirect rollover from my employer sponsored Optum Bank HSA. I plan to keep a small balance in the Optum HSA so I can keep it open and continue to receive employer contributions. I'd prefer to wait until January 2021 to actually perform the indirect rollover, but does it make sense to create the HSA account at Fidelity now so it's ready to go? Can I create the HSA account without funding it right away? In case it's relevant, I've never had any accounts with Fidelity so I'd be a completely new customer.
Yeah you can open a Fidelity HSA and keep it empty and fund in 2021.
Mr.Nobody
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by Mr.Nobody »

I'm entirely new to the Fidelty scene, and have been trying to time the enrollment (to see if there is any new member bonus). I googled a bit and did not find any bonus for the HSA part of it. I want to consolidate my HSA funds to one place (fidelity), as over the years I have Payflex (from Aetna HDHP), also HealthEquity (from Alliant HSA), and now the new HSA bank (from GEHA HDHP starting now).

Is it the right timing now to set up Fidelity HSA?I'm also considering setting up Roth IRA, and other investment account with them (again, I'm newbie in the whole investment scene and do not have any other accounts). Are there any new enrollment bonus offer for any of the fidelity accounts?

I don't have too much asset to move around, so these huge deposit offers do not suit me well.

Thanks a lot in advance.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by jeffyscott »

They've never offered a bonus for the HSA accounts, AFAIK. I would not hold off in the hope that they offer anything for these accounts as it seems unlikely that they will need to do so, being widely seen as the best option for an individual HSA account.

From reading here, for other accounts, Fidelity typically only offers bonuses to very large accounts. You could try to get them to do a match, if anyone else is offering a sign-up bonus that you would qualify for on the Roth. I don't move assets around for bonuses but did get a couple via a Schwab match when doing a rollover. Several years ago Fidelity offered, I think, $200 just for opening an account with at least $200. I got in on that before they shut it down, it was only open for a few days or maybe a week, IIRC. I don't think it ever was repeated and it was for taxable accounts, anyway.
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lstone19
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by lstone19 »

Just getting away from the high fees of almost every other HSA administrator is bonus enough from Fidelity.
Mr.Nobody
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by Mr.Nobody »

jeffyscott wrote: Mon Jan 04, 2021 10:59 am They've never offered a bonus for the HSA accounts, AFAIK. I would not hold off in the hope that they offer anything for these accounts as it seems unlikely that they will need to do so, being widely seen as the best option for an individual HSA account.

From reading here, for other accounts, Fidelity typically only offers bonuses to very large accounts. You could try to get them to do a match, if anyone else is offering a sign-up bonus that you would qualify for on the Roth. I don't move assets around for bonuses but did get a couple via a Schwab match when doing a rollover. Several years ago Fidelity offered, I think, $200 just for opening an account with at least $200. I got in on that before they shut it down, it was only open for a few days or maybe a week, IIRC. I don't think it ever was repeated and it was for taxable accounts, anyway.
Thanks for the insight. So if I open up the Fidelity HSA, would that disqualify me for their "new member" bonus for other account types, say Roth or Wealth management etc, cos techinically I won't be a "new Fidelity member", as I'd already have the HSA.
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by jeffyscott »

Mr.Nobody wrote: Mon Jan 04, 2021 2:02 pm
jeffyscott wrote: Mon Jan 04, 2021 10:59 am They've never offered a bonus for the HSA accounts, AFAIK. I would not hold off in the hope that they offer anything for these accounts as it seems unlikely that they will need to do so, being widely seen as the best option for an individual HSA account.

From reading here, for other accounts, Fidelity typically only offers bonuses to very large accounts. You could try to get them to do a match, if anyone else is offering a sign-up bonus that you would qualify for on the Roth. I don't move assets around for bonuses but did get a couple via a Schwab match when doing a rollover. Several years ago Fidelity offered, I think, $200 just for opening an account with at least $200. I got in on that before they shut it down, it was only open for a few days or maybe a week, IIRC. I don't think it ever was repeated and it was for taxable accounts, anyway.
Thanks for the insight. So if I open up the Fidelity HSA, would that disqualify me for their "new member" bonus for other account types, say Roth or Wealth management etc, cos techinically I won't be a "new Fidelity member", as I'd already have the HSA.
I don't think so, if they offer something for new accounts, it would probably be by account type, like a new taxable account. You can find some expired offers and see what the terms were, if you want to try to see what they did in the past.

Here is the one I got:
https://milestomemories.com/fidelity-200-bonus/

Search of the brokerage transfer bonus thread for "Fidelity" would be another way to research past offers:
search.php?keywords=Fidelity&t=196884&sf=msgonly
The two greatest enemies of the equity fund investor are expenses and emotions. ― John C. Bogle
TresBelle65
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Re: [Fidelity Health Savings Account Mega-Thread]

Post by TresBelle65 »

Any updates to this thread? Any recommendations for as seamless as possible of a transfer to Fidelity?

Thank you.
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