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Old 01-12-2014, 01:57 PM   #21
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I have an account with HSA Bank and rolled over some HSA funds from another custodian last year, using this form http://www.hsabank.com/~/media/files/transfer_rollover
The bottom of the form spells out the guidelines, but they are similar to an IRA rollover in that the taxpayer has 60 days to complete the transaction.
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Old 01-12-2014, 01:58 PM   #22
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Originally Posted by REWahoo View Post
I think you'll need to contact HSA Administrators with that question. My guess is what you are proposing would likely be seen by the IRS as withdrawing all your funds from your health savings account.
If that were true, wouldn't it mean that once you select an HSA administrator, you're stuck with them for life?

I think the previous poster addressed this.
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Old 01-12-2014, 02:05 PM   #23
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If that were true, wouldn't it mean that once you select an HSA administrator, you're stuck with them for life?
No, you can always transfer to another administrator. The OP wants to know if they can transfer the funds to the associated checking account and "terminate the HSA Administrator parent account." That says to me the OP took the funds out of the HSA.
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Old 01-12-2014, 02:38 PM   #24
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My guess is the account that HSA Administrators holds at HSA Bank is not titled in the name of the individual account holder but is a master account held by HSA-A. I understood the question asked by Cat-tirement the same way as REW and agree with his response. The custodian is HSA Administrator, regardless of where the funds are deposited, and if the account holder wants to move the funds to HSA-B a new, direct account with them is required.
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Old 01-12-2014, 05:44 PM   #25
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I have an account with HSA Bank and rolled over some HSA funds from another custodian last year, using this form http://www.hsabank.com/~/media/files/transfer_rollover
The bottom of the form spells out the guidelines, but they are similar to an IRA rollover in that the taxpayer has 60 days to complete the transaction.
I've been looking into a rollover from my former employer HSA account with Chase, and it looks like HSA Bank will be the best option for me. I understand I can avoid monthly fees on the account by keeping just about $5,000 in the cash account and I can invest the balance of the rollover in commission-free Vanguard ETFs at TD Ameritrade.

Looks like a good deal for me although I'll have to liquidate the investments in the current HSA and pay modest CA income tax on the gains, as CA never conformed to federal law on HSAs.

Seeing that MichaelB went with HSA Bank makes me feel even better about my decision.
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Rollover vs Transfer
Old 01-12-2014, 06:16 PM   #26
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Rollover vs Transfer

I want to be sure to clarify that rollover and transfer are different rather than the same. A rollover is when you get a check from your old administrator. You then have 60 days to get a check to the new administrator for that amount or face penalties. The IRS also limits you to doing this one time a year. The preferred way to move money between administrators is with a transfer. In this case the money moves directly from the old administrator to the new administrator. There is no limit on doing this like a rollover and the added plus is once you fill out the transfer form your effort is done. I've got my HSA with SelectAccount. the fee for their Thrift interest bearing account is $1/mo but the fee is waived if you keep $2500 in that account. If you want to participate in the optional mutual funds there is a $1.50/mo fee each month you carry a balance in mutual funds.
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Old 01-12-2014, 07:40 PM   #27
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Seeing that MichaelB went with HSA Bank makes me feel even better about my decision.
My previous HSA administrator went broke after the bank they used shut down due to fraud. My track record so far is 50-50. Caveat emptor.
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Old 01-13-2014, 03:10 PM   #28
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Another HSA Bank customer here after using two or three other administrators over the years. We are early retired and use our HSA accounts similar to an IRA which we are no longer eligible to contribute to. Our HSA Bank account is linked to TD Ameritrade where we invest in low cost Vanguard etfs which are exempt from trading fees. We spend other money to pay our medical bills and save our receipts for future reimbursement.
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Old 01-13-2014, 04:33 PM   #29
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We got our info packet in the mail today. I filled out everything and will send it back as soon as one of the sons comes over and can witness DHs signature. It can't be witnessed by the spouse.

It all seems easy enough to get started and I'm looking forward to being able to transact everything online. For this first contribution they wanted a check mailed in. We're not going to do monthly contributions, just add amounts later as we evaluate how the year is going.

I started off with 100% in Total Stock Market Index Fund Admiral Shares but it's easy enough to reallocate later.
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Old 01-13-2014, 06:38 PM   #30
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I'm not sure if this has been previously mentioned or not but Eli Lilly Federal Credit Union (Health Savings Account | Elfcu) looks like a decent HSA administrator option with a 1% rate for savings account with no associated minimums or fees http://www.elfcu.org/clientuploads/Feeschedule.pdf, and if you have more than $2500 with them in your HSA you can invest in no-cost ETFs via TD Ameritrade.

You get a debit card and have the ability to link with another external account to move money as needed for seeding contributions and subsequent reimbursements. There are also some HSA management tools available via their site.

To join the credit union requires a very easy $5 "Tru Direction" membership fee if you are not affiliated with one of their other options but they credit you back the $5 into your member savings account after opening up the HSA. They also add in the opening $5 member savings account deposit if you open the HSA without an initial deposit.

One thing I'm still investigating is whether there is a quarterly TD Ameritrade account fee or not. The Eli Lilly CU account manager I spoke to indicated TD Ameritrade’s Fee Schedule and Instructions do not include any service charges applicable to funds invested from an HSA, but suggested I talk to TD Ameritrade to be certain so I'm still unclear on this at this point.
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Old 01-17-2014, 09:15 AM   #31
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I'm not sure if this has been previously mentioned or not but Eli Lilly Federal Credit Union (Health Savings Account | Elfcu) looks like a decent HSA administrator option with a 1% rate for savings account with no associated minimums or fees http://www.elfcu.org/clientuploads/Feeschedule.pdf, and if you have more than $2500 with them in your HSA you can invest in no-cost ETFs via TD Ameritrade.

You get a debit card and have the ability to link with another external account to move money as needed for seeding contributions and subsequent reimbursements. There are also some HSA management tools available via their site.

To join the credit union requires a very easy $5 "Tru Direction" membership fee if you are not affiliated with one of their other options but they credit you back the $5 into your member savings account after opening up the HSA. They also add in the opening $5 member savings account deposit if you open the HSA without an initial deposit.

One thing I'm still investigating is whether there is a quarterly TD Ameritrade account fee or not. The Eli Lilly CU account manager I spoke to indicated TD Ameritrade’s Fee Schedule and Instructions do not include any service charges applicable to funds invested from an HSA, but suggested I talk to TD Ameritrade to be certain so I'm still unclear on this at this point.
Following up on this, I just spoke with a TD Ameritrade rep who confirmed there are no account fees on their end and over 100 commission-free ETFs to choose from which also include several Vanguard funds and a number of other good ones rated high by Morningstar. The only caveat for commission-free ETFs is you must not trade the ETF for 30 days or incur a $19.99 short-term redemption fee. So the Eli Lilly Federal CU does sound like a great HSA administrator option for those interested.
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Old 01-19-2014, 08:43 AM   #32
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My previous HSA administrator went broke after the bank they used shut down due to fraud. My track record so far is 50-50. Caveat emptor.
As a current HSA Bank HSA account holder, if HSA Bank goes under due to fraud, I demand that you tell me where you are going next, so I know where not to go.
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Old 01-19-2014, 04:00 PM   #33
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I can't say that I would recommend any particular administrator but after being with a couple of others over the years I now use HSA Bank in conjunction with TD Ameritrade for Vanguard Funds. It's as good as any I've looked at or tried and better than many.
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Old 01-21-2014, 12:44 PM   #34
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A timely article touting the Eli Lilly Federal Credit Union HSA I referenced earlier.
Best HSA Provider for Investing HSA Money
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Old 01-21-2014, 12:59 PM   #35
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A timely article touting the Eli Lilly Federal Credit Union HSA I referenced earlier.
Best HSA Provider for Investing HSA Money
That's the best option I've seen thus far. I will consider moving my account from HSA Bank to Eli Lilly. Since I don't expect to be doing anything with my account other than letting it sit there and earn for the next several years there's no reason to consider much of anything other than interest rates, investment options and costs/fees.
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Old 02-05-2014, 11:05 AM   #36
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I'm not sure if this has been previously mentioned or not but Eli Lilly Federal Credit Union (Health Savings Account | Elfcu) looks like a decent HSA administrator option with a 1% rate for savings account with no associated minimums or fees http://www.elfcu.org/clientuploads/Feeschedule.pdf, and if you have more than $2500 with them in your HSA you can invest in no-cost ETFs via TD Ameritrade.

You get a debit card and have the ability to link with another external account to move money as needed for seeding contributions and subsequent reimbursements. There are also some HSA management tools available via their site.

To join the credit union requires a very easy $5 "Tru Direction" membership fee if you are not affiliated with one of their other options but they credit you back the $5 into your member savings account after opening up the HSA. They also add in the opening $5 member savings account deposit if you open the HSA without an initial deposit.

One thing I'm still investigating is whether there is a quarterly TD Ameritrade account fee or not. The Eli Lilly CU account manager I spoke to indicated TD Ameritrade’s Fee Schedule and Instructions do not include any service charges applicable to funds invested from an HSA, but suggested I talk to TD Ameritrade to be certain so I'm still unclear on this at this point.
Just pulled the trigger on this.

For the 'credit freezers' out there, they said this:

Quote:
-------- Original Message --------
Subject: RE: Opening an Account and Credit Bureaus
Date: Wed, 5 Feb 2014 13:36:53 +0000
From: Customer Service <CustomerService@elfcu.org>
To:

Thank you for your email. We use Equifax when processing those membership applications. If you have any further questions please contact us at 800.621.2105.

Thank you,
Elfcu Member Service
225 South East Street; Suite 300
Indianapolis, IN 46202
(800) 621-2105 Toll-Free
customerservice@elfcu.org
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