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Reasonable HSA fee? cheaper options?
03-17-2015, 10:40 AM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2012
Location: Seattle
Posts: 6,023
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Reasonable HSA fee? cheaper options?
Since we will be retiring this month, HR informed us that we are now responsible for our HSA fee ($3.95 per month at UMB bank).
We have about 20k there, treating it like a Roth (pay all our medical out of pocket).
So that is about 0.25% per year fee. Reasonable or is it possible to get cheaper?
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03-17-2015, 10:46 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
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It also depends on what the HSA is invested in... if it is in a bank account then after the 0.25% of fees it is probably not earning that much.
We transferred ours to HSA Administrators. We pay more in fees ($45 annual fee plus some others) but can invest in low cost Vanguard funds (ours is in Total Stock) so even though we pay high fees I think we will be better off in the long run than paying low fees but earning much less or being limited to investing in high-cost funds.
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If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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03-17-2015, 10:47 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 3,681
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Our fee for HSA Adminstrators is $45/yr plus .08% quarterly on investments so your fee sounds reasonable.
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Married, both 69. DH retired June, 2010. I have a pleasant little part time job.
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03-17-2015, 10:58 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,228
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http://www.early-retirement.org/foru...nts-74837.html recent thread on HSA account options. It is possible to do it cheaper but yours isn't bad, depending on whether you have good investment choices.
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03-17-2015, 12:10 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Jul 2006
Location: Denver
Posts: 3,519
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I use HSA Administrators, but am very frustrated by their web site. It is SLOW and so very unintuitive.
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03-17-2015, 12:47 PM
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#6
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Recycles dryer sheets
Join Date: Oct 2013
Posts: 204
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I haven't done it yet, but I intend to open one with this credit union, which is available to anyone. I haven't found a catch or fee yet... Look halfway down the page for HSA rates...
https://www.connexuscu.org/rates/deposit-accounts
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.................................
A life without beer is not worth living
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03-17-2015, 01:23 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
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Quote:
Originally Posted by walkinwood
I use HSA Administrators, but am very frustrated by their web site. It is SLOW and so very unintuitive.
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+1 Luckily, our HSA money just sits there in Vanguard funds (we no longer can do contributions) and grows so the only thing I have to do is log on periodically and get the periodic dividends and redemptions for the .08% fee. If I was actually using the HSA funds then I would move it elsewhere that had better online capabilities.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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03-17-2015, 05:04 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 2,613
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Try HSA Bank. No fee if you maintain a minimum in the bank account, access to TD Ameritrade for investments (with a monthly fee). I don't invest but hold the funds to pay expenses.
Add up all the possible expenses, I don't think it will come to $45 per year. Currently paying .40% on savings.
Rita
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Only got A dimple, would have preferred 2!
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03-18-2015, 09:00 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Jul 2012
Location: Texas
Posts: 3,024
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My HSA is at Fidelity. They waive the $48/yr fee for households with $250K in assets at Fidelity. So, I've never paid a fee beyond the ER of whatever ETF I own. It's a brokerage account, so I can own anything I want, although there is the usual $7.95 commission to trade non-Fidelity ETFs. I currently hold an iShares equity ETF, with no commission. It's also very convenient for contributions and distributions, which are just an online transfer to/from our Fidelity cash management account.
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Retired at 52 in July 2013. On to better things...
AA: 85/15 WR: 2.7% SI: 2 pensions, SS later
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03-18-2015, 09:06 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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Quote:
Originally Posted by Cobra9777
My HSA is at Fidelity. They waive the $48/yr fee for households with $250K in assets at Fidelity. So, I've never paid a fee beyond the ER of whatever ETF I own. It's a brokerage account, so I can own anything I want, although there is the usual $7.95 commission to trade non-Fidelity ETFs. I currently hold an iShares equity ETF, with no commission. It's also very convenient for contributions and distributions, which are just an online transfer to/from our Fidelity cash management account.
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Fidelity HSAs are still not available to individuals AFAIK. You must have gotten yours through your company health insurance plan.
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Retired since summer 1999.
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03-18-2015, 09:09 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Jul 2012
Location: Texas
Posts: 3,024
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Quote:
Originally Posted by audreyh1
Fidelity HSAs are still not available to individuals AFAIK. You must have gotten yours through your company health insurance plan.
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You are correct. I just kept it from my Megacorp days. I didn't know they were unavailable to everyone.
__________________
Retired at 52 in July 2013. On to better things...
AA: 85/15 WR: 2.7% SI: 2 pensions, SS later
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03-18-2015, 09:09 AM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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if you have a large enough amount, and it looks like you do, you can probably roll it over somewhere that waives annual or monthly fees once minimums are met.
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Retired since summer 1999.
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06-11-2015, 01:30 AM
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#13
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Full time employment: Posting here.
Join Date: Jul 2014
Posts: 868
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Quote:
Originally Posted by Cobra9777
You are correct. I just kept it from my Megacorp days. I didn't know they were unavailable to everyone.
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Not sure. Didn't have one while working. Called Fidelity as a MegaCorp retiree but they said I had to fill out an individual request because I was no longer an employee. Set one up for me, and spouse was also able to establish a Fidelity HSA by making an individual application (and never having worked for MegaCorp).
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06-11-2015, 01:59 AM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Posts: 7,438
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Quote:
Originally Posted by pb4uski
+1 Luckily, our HSA money just sits there in Vanguard funds (we no longer can do contributions) and grows so the only thing I have to do is log on periodically and get the periodic dividends and redemptions for the .08% fee. If I was actually using the HSA funds then I would move it elsewhere that had better online capabilities.
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How do you get redemptions from HSA Administrators?
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06-11-2015, 04:48 AM
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#15
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Thinks s/he gets paid by the post
Join Date: Jan 2014
Posts: 1,181
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Quote:
Originally Posted by Gotadimple
Try HSA Bank. No fee if you maintain a minimum in the bank account, access to TD Ameritrade for investments (with a monthly fee). I don't invest but hold the funds to pay expenses.
Add up all the possible expenses, I don't think it will come to $45 per year. Currently paying .40% on savings. Rita
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The HSA Bank interest rate depends on your balance in the bank account, currently .40% for the OP's $20k. If you link the account to TD Ameritrade, there is no monthly fee if you keep $5k at HSA Bank earning .20%, otherwise a total of $5.50 in monthly fees ($2.50 monthly account maintenance and $3.00 investment fee).
HSA Bank Rates and Fees
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06-11-2015, 06:52 AM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2008
Posts: 13,150
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Quote:
Originally Posted by walkinwood
I use HSA Administrators, but am very frustrated by their web site. It is SLOW and so very unintuitive.
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+1. What? You don't like their "new and improved" website?
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
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06-11-2015, 07:39 AM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2008
Posts: 13,150
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Quote:
Originally Posted by explanade
How do you get redemptions from HSA Administrators?
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I used to get my distributions (I reimburse myself each year, instead of letting the account grow) for qualified expenses the old fashioned way but sending in a form, US mail, each year.
But now, I've used their "Automatic Contribution & Distribution Authorization" form to give the bank info where you want the distributions deposited to. Then each year, I just specify (online at their site) the amount, and the distribution automatically gets placed in my account.
When you log on, go to their "Forms" tab to see the "Automatic Contribution & Distribution Authorization" form.
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Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
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06-11-2015, 09:15 AM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Posts: 7,438
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Besides the $45 fee it sounded like there was some .08 maintenance fee?
And pb4 seemed to be referring to a way to get redemptions on that fee?
As for distributions, can you have them automatically reinvest to additional shares?
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06-11-2015, 09:19 AM
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#19
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Moderator
Join Date: Oct 2010
Posts: 10,725
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I went with "Elements Financial". It's free if you just want an interest bearing account, and a small fee for if you want a trading account. I only had one year's worth of HSA contributions, so didn't bother to get a trading account. Now that I have two years' worth, that's on the agenda.
I learned about it in this post. It used to be called "elfcu", but it's just a name change. Customer service has been great.
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06-14-2015, 09:11 AM
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#20
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Recycles dryer sheets
Join Date: Nov 2011
Posts: 185
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Our HSA is with Optum Bank for over 5 years now. No fees with minimum cash balance. Remainder can be invested in a nice selection of mutual funds, including several low-cost Vanguard index funds. Very user friendly.
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