HSA Option - Stay with Health Equity or Fidelity?

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OldSport
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HSA Option - Stay with Health Equity or Fidelity?

Post by OldSport »

Current employer uses My Benefit Wallet for HSA. I've read that MBW had bad fees, but the employer either covered or sheltered us from those, that they weren't transparent.

Health Equity is acquiring MBW.

Employer has elected not to use Health Equity and is switching to Fidelity HSA for "new" company payroll deductions, but the existing HSA balances transitioned from MBW will be "stuck" at Health Equity unless we roll over ourselves after the dust settles.

I currently have about $35k in MBW invested between 80% Vanguard Total Stock Market Index and 20% Vanguard Total Bond Index.

Should I just leave it in Health Equity or transition to Fidelity and have the funds out of the market for 3+ weeks given the slow process. Health Equity is structured to NOT be able to transfer in kind to Fidelity, but what is interesting is that they're automatically transferring the funds in kind from MBW to HE.
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retired@50
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Re: HSA Option - Stay with Health Equity or Fidelity?

Post by retired@50 »

OldSport wrote: Tue Apr 02, 2024 10:03 am
Should I just leave it in Health Equity or transition to Fidelity and have the funds out of the market for 3+ weeks given the slow process.
Personally, I'd transition to Fidelity, in spite of the time it takes. In the grand scheme of things, I doubt this blip will matter.

Regards,
"All of us would be better investors if we just made fewer decisions." - Daniel Kahneman
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BolderBoy
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Re: HSA Option - Stay with Health Equity or Fidelity?

Post by BolderBoy »

retired@50 wrote: Tue Apr 02, 2024 10:13 am Personally, I'd transition to Fidelity, in spite of the time it takes. In the grand scheme of things, I doubt this blip will matter.
+1.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect
DN28
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Re: HSA Option - Stay with Health Equity or Fidelity?

Post by DN28 »

Another vote to do the rollover from Health Equity to Fidelity. I made the same move a few years ago with no regrets.
LittleMaggieMae
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Re: HSA Option - Stay with Health Equity or Fidelity?

Post by LittleMaggieMae »

My employer uses Health Equity. My employer doesn't cover the fees.
I have a Fidelity HSA. I keep just enough in the Health Equity account to avoid fees. I do not use the investment option on the account (the fees are high.) I transfer money every year to my Fidelity HSA.

I would also recommend rolling your HSA to Fidelity.

If nothing else it will mean you only have to keep track of the "rules" and "pitfalls" of ONE account. Keeping track of two accounts is a pain.
Oddball
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Re: HSA Option - Stay with Health Equity or Fidelity?

Post by Oddball »

LittleMaggieMae wrote: Tue Apr 02, 2024 10:57 am My employer uses Health Equity. My employer doesn't cover the fees.
I have a Fidelity HSA. I keep just enough in the Health Equity account to avoid fees. I do not use the investment option on the account (the fees are high.) I transfer money every year to my Fidelity HSA.

I would also recommend rolling your HSA to Fidelity.

If nothing else it will mean you only have to keep track of the "rules" and "pitfalls" of ONE account. Keeping track of two accounts is a pain.
I am in the same boat and agree, keep small amount of funds at HE and roll everything else to Fid
260chrisb
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Re: HSA Option - Stay with Health Equity or Fidelity?

Post by 260chrisb »

DN28 wrote: Tue Apr 02, 2024 10:35 am Another vote to do the rollover from Health Equity to Fidelity. I made the same move a few years ago with no regrets.
I did this as well. OP; Health Equity will keep $25.00 of your money as a going away gift!
nousernameforme
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Re: HSA Option - Stay with Health Equity or Fidelity?

Post by nousernameforme »

260chrisb wrote: Tue Apr 02, 2024 11:56 am
DN28 wrote: Tue Apr 02, 2024 10:35 am Another vote to do the rollover from Health Equity to Fidelity. I made the same move a few years ago with no regrets.
I did this as well. OP; Health Equity will keep $25.00 of your money as a going away gift!
I recently completed this transfer from HealthEquity to Fidelity. You're right that they charge $25 but call Fidelity and ask if they'll refund the fee. If you have a balance over a certain amount (I think $25K but don't quote me on it) they refund it without issue.

I did it and I had the $25 in my account the next day. It's worth a phone call!
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