Questions RE: Transfer of HSA

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TresBelle65
Posts: 302
Joined: Sun Apr 12, 2015 2:44 pm

Questions RE: Transfer of HSA

Post by TresBelle65 »

For 2021, I've elected to be covered by my employer's regular healthcare plan, and not the HDHP. Accordingly, for this year, I will not be making any HSA contributions.

I have been seriously underwhelmed by HSABank, so I'd like to transfer the account to another provider. I've read many recommendations here for Fidelity.

On January 8th, a deposit was made by my healthcare insurer to the account, it would appear this is an "in-arrears" type of contribution/payment for 2020?

I understand these insurance provider contributions will cease now that I have the non-HDHP - "regular" health insurance?

Basically, it seems as if this is a good time to move the account?

Also, I had a small overcontribution in 2020, I am assuming HSABank will return that to me and I will file a form with my 2020 tax return to account for that?

Any tips or tricks I should be aware of in moving the account?

Thanks
willyd123
Posts: 198
Joined: Mon Feb 19, 2018 7:23 am

Re: Questions RE: Transfer of HSA

Post by willyd123 »

I've transferred HSA assets from HealthEquity to Lively several times and it was very easy to do. I've never used HSABank so can't say how complicated their process is. I'd have two suggestions for you:

1. Check is HSABank charges any fees to transfer money from them to another firm. Sometimes these firms do charge (i.e., $25).

2. Consider Lively. I've been with them for a few years now and I find their website to be extremely robust and user-friendly. They partner with TD Ameritrade (just merged with Schwab) so if you invest your HSA assets, you would do so via TDA. I personally find TSA's platform also very robust and user-friendly.
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anon_investor
Posts: 4308
Joined: Mon Jun 03, 2019 1:43 pm

Re: Questions RE: Transfer of HSA

Post by anon_investor »

TresBelle65 wrote: Wed Jan 13, 2021 10:43 am For 2021, I've elected to be covered by my employer's regular healthcare plan, and not the HDHP. Accordingly, for this year, I will not be making any HSA contributions.

I have been seriously underwhelmed by HSABank, so I'd like to transfer the account to another provider. I've read many recommendations here for Fidelity.

On January 8th, a deposit was made by my healthcare insurer to the account, it would appear this is an "in-arrears" type of contribution/payment for 2020?

I understand these insurance provider contributions will cease now that I have the non-HDHP - "regular" health insurance?

Basically, it seems as if this is a good time to move the account?

Also, I had a small overcontribution in 2020, I am assuming HSABank will return that to me and I will file a form with my 2020 tax return to account for that?

Any tips or tricks I should be aware of in moving the account?

Thanks
Move to Fidelity, that is the BH #1 best approved HSA option.
aristotelian
Posts: 8576
Joined: Wed Jan 11, 2017 8:05 pm

Re: Questions RE: Transfer of HSA

Post by aristotelian »

Regarding the transfer itself, if you want to avoid HSA Bank's transfer fees, you can withdraw the full balance and then cut a check to Fidelity/Lively within 60 days.

Regarding the overcontribution, I can't recall where, but I remember reading somewhere that HSA Bank refuses to calculate the gains, which are taxable. Was this is an investment account?

Regarding Lively/Fidelity, I have had both. The problem with Lively is that they have a separate platform for the savings account and the investment account through TD Ameritrade. Thus you need two maintain two login credentials, which I find annoying, and each time you make a contribution there is a delay of a couple of days since the contribution has to hit Lively first and then transfer over. Lively does things like track receipts for you, so if you want to make frequent withdrawals, you may find their platform advantageous, otherwise I would rather have cash and investment funds all in one place.
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