Health Savings Administrators' New Custodian

[Gone4Good]

I've pretty much given up on making sense out of the statements .
Their website and their statements are so very disjointed.

Yup. I'm at the point of transferring my HSA somewhere else. Admin is awful for so many reasons. And those quarterly fees are starting to feel like rubbing salt.

 

[travelover]

Yup. I'm at the point of transferring my HSA somewhere else. Admin is awful for so many reasons. And those quarterly fees are starting to feel like rubbing salt.

Please let us know if you find a good alternative - something with Vanguard funds would be nice.

 

[easysurfer]

Please let us know if you find a good alternative - something with Vanguard funds would be nice.

Does anyone here have a HSA with The HSA Authority?

http://www.thehsaauthority.com

I wonder how friendly is their online access (can't be any worse than HSA Administrators).

I'm almost tempted to jump ship away from HSA Administrators (HSA Authority does have several Vanguard funds, among others, to choose from).

The drawback is HSA Authority requires a checking account with them (not sure if one has to keep a $1000 balance with them or not).

For now, I'll probably stay with HSA Administrators and keep my strategy of avoiding accessing them online as much as possible , but it is good to consider options.

 

[Gotadimple]

HSA Bank. Website is OK, low minimum on savings to avoid maintenance fee. TD Ameritrade for larger balances you might want to invest.

 

[MichaelB]

HSA Bank. Website is OK, low minimum on savings to avoid maintenance fee. TD Ameritrade for larger balances you might want to invest.

Same here

I wonder how friendly is their online access (can't be any worse than HSA Administrators).

Experience has taught me never to say that, because it can always get / be worse.

 

[easysurfer]

Same here

Experience has taught me never to say that, because it can always get / be worse.

True. Shouldn't have said that .

As I think further, I'll probably stick with HSA Administrators because if pattern holds, maybe (just me thinking aloud) they will have a new custodian again in a year or two who happens to have a decent online interface and understandable statements .

 

[MichaelB]

True. Shouldn't have said that .

As I think further, I'll probably stick with HSA Administrators because if pattern holds, maybe (just me thinking aloud) they will have a new custodian again in a year or two who happens to have a decent online interface and understandable statements .

If you're not happy, waiting will probably just lead to more frustration. Go ahead and change. A financial institution has to process the transactions correctly and provide statements that are timely. Otherwise how does one monitor the account? Consumer financial protection and law is centered around the individual as the primary monitor of activity.

I think we are used to the robust systems and low cost service we get from our banks and brokers, and expect something similar from the HSA account providers, and so far none seem to fit the bill. HSA Bank systems are adequate, but even with them I regularly look for alternatives.

 

[easysurfer]

If you're not happy, waiting will probably just lead to more frustration. Go ahead and change. A financial institution has to process the transactions correctly and provide statements that are timely. Otherwise how does one monitor the account? Consumer financial protection and law is centered around the individual as the primary monitor of activity.

I think we are used to the robust systems and low cost service we get from our banks and brokers, and expect something similar from the HSA account providers, and so far none seem to fit the bill. HSA Bank systems are adequate, but even with them I regularly look for alternatives.

I'm still working on lowering my expectations .

 

[easysurfer]

Received a survey monkey survey today for feedback about HSA Administrators.

I gave a piece of my mind about the website .

 

[audreyh1]

I think I will too. More their "statements". The old statements were just fine. These new ones leave out the transactions which is insane. How can you have a monthly statement without transactions to reconcile?!? I have to go ro a different part of the site to get the transaction history, and it's no really clear.

 

[Sue J]

I did the survey last night.

In answer to "What do you like about them?" - I answered that the ONLY thing I like about them is that they offer Vanguard funds. What I don't like is they have the worst website. The lack of info on transactions is the dumbest thing I've ever seen. I also told them I didn't like that the $45 fee had to come out of the account rather than being paid from outside money. I never found how to change that.

 

[jarts98]

HSA Bank. Website is OK, low minimum on savings to avoid maintenance fee. TD Ameritrade for larger balances you might want to invest.

Ditto for me. Great experience thus far.

 

[explanade]

When you redeem HSA funds, do you have to figure out the taxes based on the cost basis?

Do I need to keep track of the dividends and cap gains minus the custodial fees that HSA Administrators take out?

 

[zinger1457]

When you redeem HSA funds, do you have to figure out the taxes based on the cost basis?

Do I need to keep track of the dividends and cap gains minus the custodial fees that HSA Administrators take out?

If taking funds out for medical expenses then no taxes are paid. If taking funds out for non-medical expenses then you pay a 20% penalty in addition to income taxes, not a good idea. If 65 years or older then there is no 20% penalty for non-medical expense withdrawals but you will have to pay income taxes, like an IRA withdrawal. Cost basis shouldn't matter in any case.

 

[explanade]

Thanks.

But if your HSA account didn't appreciate much, say 90% of the balance came from your annual contributions, then should you be taxed on the full amount of the withdrawal or just the portion that has gains?

Because you've contributed after-tax dollars.

 

[zinger1457]

Because you've contributed after-tax dollars.

Not if you deducted your HSA contributions.

 

[audreyh1]

Thanks.

But if your HSA account didn't appreciate much, say 90% of the balance came from your annual contributions, then should you be taxed on the full amount of the withdrawal or just the portion that has gains?

Because you've contributed after-tax dollars.

It acts just like an IRA. All money withdrawn, if you are old enough, is taxed as ordinary income unless it's used to pay or reimburse qualified medical expenses.

There is no cost basis for HSA funds because it was funded with pre-tax dollars.

Those HSA contributions were taken off your taxable income. So its pretax dollar you contributed.

 

[explanade]

No I only opened the HSA after I FIRE'd, so they're all after-tax money for me.

Because I didn't open an HSA when I was working and only opened an account after signing up for health insurance in the last couple of years.

 

[audreyh1]

No I only opened the HSA after I FIRE'd, so they're all after-tax money for me.

Because I didn't open an HSA when I was working and only opened an account after signing up for health insurance in the last couple of years.

It has nothing to do with working.

When you file your federal taxes, there is a form for HSA contributions, and these get taken off your taxable income just like an IRA or 401K contribution. You don't pay Federal Income taxes on those contributions.

If you didn't do that on your tax returns you might want to refile and get the refund you are owed.

There is no way to contribute after tax dollars to an HSA account.

 

[Ginny]

I have not been notified of a change of custodians. Last year was my first contribution.

Another reason I am glad I am on this forum. I am less than OMY or <OMY!! So this may be my second and last contribution.

 

[explanade]

It has nothing to do with working.

When you file your federal taxes, there is a form for HSA contributions, and these get taken off your taxable income just like an IRA or 401K contribution. You don't pay Federal Income taxes on those contributions.

If you didn't do that on your tax returns you might want to refile and get the refund you are owed.

There is no way to contribute after tax dollars to an HSA account.

Thanks, it appears I missed the question in TurboTax or it didn't display the screen to enter it the first time around.

 

[pb4uski]

....the ONLY thing I like about them is that they offer Vanguard funds. What I don't like is they have the worst website. The lack of info on transactions is the dumbest thing I've ever seen. I also told them I didn't like that the $45 fee had to come out of the account rather than being paid from outside money. I never found how to change that.

+1 I recall in some past years receiving a bill for the $45 and paying it from our taxable funds but this year it just came out of the account. I have been considering a change if I could find a better provider. I went with them because they had Vanguard funds and as others have, my solution to their pathetic website and high fees is to just interact with them as little as possible.

Does anyone here have a Fidelity HSA? If so, what is your experience? How much are their fees?

 

[audreyh1]

Fidelity HSA is not available to individual investors.

 

[easysurfer]

+1 I recall in some past years receiving a bill for the $45 and paying it from our taxable funds but this year it just came out of the account. I have been considering a change if I could find a better provider. I went with them because they had Vanguard funds and as others have, my solution to their pathetic website and high fees is to just interact with them as little as possible.

Does anyone here have a Fidelity HSA? If so, what is your experience? How much are their fees?

I do the same about interacting with their website as little as possible. I use their site when I issue a withdrawal but for contributions and statements I go the old paper, pre-online method of writing a check and receiving paper statements.

Hopefully, if enough people tell on the survey that their website is so difficult to use, that they will make an improvement.

 

[athena53]

I have not been notified of a change of custodians. Last year was my first contribution.

Another reason I am glad I am on this forum. I am less than OMY or <OMY!! So this may be my second and last contribution.

Not necessarily. I retired two years ago at age 61 and am still making tax-deductible contributions because I have an HSA-eligible individual plan ($5,000 deductible).