Fidelity offers individual HSA accounts?

[Helen]

According to a Boglehead poster, Fidelity is going to begin offering HSA accounts to individuals who don't have an account through their employers. It was suppose to be available as of today but I have not seen any mention of it on their website or in the news.

Can anyone confirm this rumor?


https://www.bogleheads.org/forum/viewtopic.php?f=10&t=263661

 

[COcheesehead]

According to some of the folks on the private forum at Fido, they will host an HSA for the right clients. Now whether they plan on offering it to the broad public, I have not seen or heard anything.

 

[catotx]

It is up now. See

https://www.fidelity.com/go/hsa/why-hsa

Apparently the HSA itself has no fees and you can use the whole range of brokerage products from Fidelity.

 

[audreyh1]

Wow - never thought that would happen!

Did anyone see anything about costs or fees?

 

[USGrant1962]

I was just reading that thread too. Went immediately my HealthEquity account and sold the investment portion. Next week when it is sitting in cash I'll transfer to Fido.

 

[catotx]

I was just reading that thread too. Went immediately my HealthEquity account and sold the investment portion. Next week when it is sitting in cash I'll transfer to Fido.

Wow, that's fast.

Thinking of doing the same with my Lively HSA.

 

[pb4uski]

I went to the link. Have you seen anything on fees?

We no longer have HSA eligible HI but we have significant balances in our HSAs. Currently with Health Savings Administrators and money invested in Vanguard Total Stock, but their nickel and dime fees and god-awful website bug me. This may be a better alternative.

I am mostly Vanguard and have been hoping that Vanguard would do what Fidelity is doing.

 

[USGrant1962]

Yea, I've hated my Megacorp HealthEquity HSA for a long time.

 

[MBSC]

Did anyone see anything about costs or fees?

I went to the link. Have you seen anything on fees?

No HSA-specific fees. Just the normal trading fees such as $4.95 to buy stock.

Using the Fidelity HSA in conjunction with one of the new (U.S.-based) zero fee funds from Fidelity, like FZROX, results in the following:
* No E/R fees
* No foreign taxes withheld
* No account mgmt fees
* No transaction fees
* No federal taxes
* No state taxes (for most states)

https://www.bogleheads.org/forum/viewtopic.php?f=10&t=263661&start=100#p4214431

Why a Fidelity HSA?

No account opening or transaction fees.

https://www.fidelity.com/go/hsa/why-hsa

 

[audreyh1]

Probably transfer ours. Tired of dealing with HSA Administrators. But I want to see the fee structure first.

 

[audreyh1]

No HSA-specific fees. Just the normal trading fees such as $4.95 to buy stock.

So none of this monthly/annual fee business or skimming shares from holdings every quarter to cover fees?

 

[travelover]

Tried to move my investments to cash at HSA Administrators. Repeatedly failed. So tired of their dog a$$ website.

 

[pb4uski]

Also, I've been wanting to give Fidelity a try. This will be a good opportunity to move some money over to them and get a good sense of what they can offer.

I wonder if they have the ability to claw the money in from Health Savings Administrators if I signed the right forms like they can do with an IRA transfer.

 

[RetireAge50]

Perfect timing! I was all set to fund my new HSA using Lively HSA. Now will use Fidelity to save the $30/yr unless Vanguard swoops in before Jan 1st.

 

[audreyh1]

Tried to move my investments to cash at HSA Administrators. Repeatedly failed. So tired of their dog a$$ website.

Yeah - I’ve really had it. Their statements are worthless and reconciling is a pain. Moving to Fidelity is now on my 2019 todo list. I won’t schedule any 2019 contributions at HSAA.

 

[MBSC]

I wonder if they have the ability to claw the money in from Health Savings Administrators if I signed the right forms like they can do with an IRA transfer.

There is a transfer of assets form, however, some Boglehead posters are saying stocks/bonds cannot be transferred "in kind" at this time. They have to be liquidated first.

Also, be aware of account closure fees at the old HSA. Someone on Bogleheads found this for Lively HSA:

"Effect of closing an account – If you close your account before interest is paid; you will not receive the accrued interest. An early closure fee of $25 will be assessed if your account is closed in the first 12 months."

I just spoke with Fidelity and was told by a rep that in-kind transfers are not allowed. One must liquidate their stocks into cash - then make a trustee to trustee cash transfer - then reinvest the funds within the HSA Brokerage account with Fidelity.

It's not considered a taxable event so it's not a huge issue - but we will be subject to brokerage fees depending on the funds we invest in at Fidelity.

https://www.bogleheads.org/forum/viewtopic.php?f=10&t=263661&start=100#p4214495

 

[pb4uski]

I wasn't expecting a in-kind transfer. I was just hoping that I could sign a form with Fidelity authorizing the transfer of my account and they would use that authorization to contact Health Savings Administrators to liquidate all my funds and transfer the proceeds to the Fidelity HSA. But if it ends up that I have to do that myself then it's no big deal.

 

[audreyh1]

There is a transfer of assets form, however, some Boglehead posters are saying stocks/bonds cannot be transferred "in kind" at this time. They have to be liquidated first.

Also, be aware of account closure fees at the old HSA. Someone on Bogleheads found this for Lively HSA:

"Effect of closing an account – If you close your account before interest is paid; you will not receive the accrued interest. An early closure fee of $25 will be assessed if your account is closed in the first 12 months."

I'm pretty sure HSAA has a $25 account closing fee. I thought I noticed that a while back and I don't think there was a time limit either.

 

[audreyh1]

I wasn't expecting a in-kind transfer. I was just hoping that I could sign a form with Fidelity authorizing the transfer of my account and they would use that authorization to contact Health Savings Administrators to liquidate all my funds and transfer the proceeds to the Fidelity HSA. But if it ends up that I have to do that myself then it's no big deal.

I was expecting that but assumed I might have to sell my HSAA holding first.

That bogleheads link mentions no in-kind transfer of assets. But I don't know if Fidelity would direct HSAA to sell the funds or I should do so before hand. I assume the latter.

 

[pb4uski]

I'm not sure why anybody would care about an in-kind transfer for tax-free account. What am I missing?

 

[travelover]

I'm not sure why anybody would care about an in-kind transfer for tax-free account. What am I missing?

Risk of losses on investments during the transition would be my worry.

 

[catotx]

I'm not sure why anybody would care about an in-kind transfer for tax-free account. What am I missing?

HSA accounts are regarded as normal taxable accounts in some states, notably in California. Liquidation would have state tax consequences.

 

[pb4uski]

That's warped, but I see your point.

 

[audreyh1]

Risk of losses on investments during the transition would be my worry.

Right - that would be the main thing, don't have to worry about time out of the market.

 

[davebarnes]

Moving on up.
Screw Optum bank.
Screw my credit union.