HSA Transfer delays--normal?

[RunningBum]

On March 1 I started the process to transfer my HSA account from my credit union to SelectAccount. I filled out SA's application and transfer requests forms and emailed it to the address they gave.

My first indication that it was accepted was around March 10 (I can't recall exactly, but that's about right), when the money disappeared from the CU account This is always the scary time, when your money leaves one place and hasn't yet landed where you can see it. A day or two later I got a letter from SA with my account number, and that it was open as of March 1. With the account # I'm able to create an online account to access it.

OK, money should show in about 3-5 business days, right? Every day or two I check, balance is 0. Finally yesterday I lost patience and emailed customer support. No answer yet, but today I did find a "Pending Deposits" screen which shows a "submitted date" of 3/20 and an "Expected Post Date" of 3/30. At least now I can see something that shows my money is getting there, but 30 days to transfer seems really slow.

Is this typical of HSA transfers? 10 days to get it out of my old account, 10 to arrive at the new account, and 10 to get it posted? That seems ridiculous! I hope this isn't indicative of how SelectAccount is to use. I guess I have to stick with them for a year because I've seen multiple places that you can only do one transfer a year.

 

[RunningBum]

I got a reply back this morning. The rep says they faxed the transfer over March 7 (why did they wait 6 days??), and have received the funds (which I did confirm myself today, apparently March 20) and are in the process of posting them to my account (why does this take 10 days??). She says they typically get a paper check, and the transfer process typically takes a minimum of 3 weeks, and often 30 days or more. There was no indication of this time in their transfer instructions.

I'll just leave this as a "be aware" if you are transferring to SelectAccount (soon to be renamed Further, btw). I wonder if other places like HSABank take the same amount of time.

 

[davebarnes]

Only 30 days?

I am in my 89th day of trying to move $50K in a tradIRA from Vanguard to Fidelity. That is, Fidelity is in the 89th day of asking Vanguard to release my money and send it to Fidelity. We have had three 3-way conversations and each time Vanguard says: don't see any problems.

 

[RunningBum]

Oof!

 

[bingybear]

My experience, they must give it to a mail man who has to deliver by foot other letters to every country in the world before delivering your transfer papers.

Seriously, I've done it twice and it took a very long time. I never used a CU for HSA. I have not idea why, but it has taken a long time.

 

[audreyh1]

I would not be surprised by a custodian to custodian transfer taking well over a month, if not a couple.

Contacting customer support at the new company probably does help speed things along.

 

[gauss]

SelectAccount is slow and nontransparent. Customer support was okay though.

Overall they are very worth it for access to the Charles Scwaab brokerage account with only nominal fees if you set it up right.

I stopped doing "direct transfers" of HSAs one or two custodians ago. I just request a personal check for my balance, close the account, then deposit the funds into the new HSA ENSURING THAT IT IS CODED AS A 60 day/INDIRECT ROLLOVER. You do have to ensure that you don't do this type of rollover too often (ie more than once per/year - I think 366 satisfies the requirement, but do check on your own) or it could go really bad with the IRS.

-gauss