Multiple HSA's?

[PaunchyPirate]

For 2024, I'm venturing into the world of having an HSA for the first time. I signed up for an HDHP with my insurance provider, Highmark Blue Cross/Blue Shield. My plan is to open my HSA with Fidelity.

I just signed into my online Highmark account this morning to make sure everything looked good with the new year of coverage (which it does), and saw an "Open an HSA" button available to me. I figured I would look at what they had to say about HSA account without actually opening one with them. I was curious who they used as a HSA provider, since I doubt they do it themselves. In the process, after confirming which insurance plan I was referring to, there was a "Go" button. I clicked it thinking it would give me more details on how it all worked. But alas, it simply said something like, "You have opened an HSA account. Check back later after we process it."

Grrrrrr. So it appears they are off setting up an HSA for me somewhere. They presented zero information on who the account will be with, how to fund it, etc. Nothing.

Will this be a problem for me to still open one up at Fidelity? Or will I have to go thru a process to transfer an empty HSA to Fidelity? or worse, do I have to fund the original one and then transfer it to Fidelity? I'm guessing, No, but I have no idea. Can I just leave it sitting empty and go ahead and use Fidelity? On Jan 2nd, I will call them to try and close it, I guess. But figured I'd ask the experts here for thoughts.

Edited to Add: I guess I could have researched a little first. It seems having multiple HSAs is not a problem. I will only fund one of them in 2024. Hopefully, I can also close this one I created by mistake, for simplicity.

 

[Out-to-Lunch]

I think you have it figured out, but, yeah, it's fine to have multiple HSAs. My insurance provider requires that you have an account with Optuum. But they don't require that you fund it. So I fund my Fido account and leave the Optuum languishing.

 

[Exit 2024]

You already got your answer, it is totally fine to have multiple HSAs and you can even fund all of them as long as total across all of them will not be higher than IRS limit for the year.

One point I want to mention - I see more and more employers are offering HSA contributions on behalf of employees, but they do it only if you open HSA account with provider that they require.

For example mine started to add $500 per year 4 years ago if I contribute at least $1 per paycheck, so I do it through payroll to no leave free money on the table and rest up to limit I contribute to my own HSA at HSAbank that have investments available through Schwab.
My SO's employer this year will start adding $700 per year to HSA if employee contributes also at least $700 (basically 1:1 match). So plan is the same - contribute minimum to Optum(their required provider) to get the match and rest up to the limit will also go to HSAbank. Money accumulated at employer provided HSA account we rollover once per year to the same HSAbank.

It may not be your case but just to make sure that you do not overlook it - annual contribution limit includes employer contributions also. It is not the same way as for example how 401k match works where employer's contributions are not included into the employee limit.

 

[Kings over Queens]

I think you have it figured out, but, yeah, it's fine to have multiple HSAs. My insurance provider requires that you have an account with Optuum.

Mine too, and they will only find to Optum, so I'm stuck with 2. Its the first year they are funding the HSA and Optum requires 2k before you can buy investments. I'm debating moving 2k from my fido account, and then transferring it out later in the year.

I'll figure a way to finagle something.

 

[nvestysly]

Don't overlook the $1,000 catchup option if you're over 50. And be aware that if you have a significant other you can both contribute to catchup. And the significant other can have their own HSA although the family total and individual catchups cannot exceed the annual limits.

 

[Exit 2024]

Don't overlook the $1,000 catchup option if you're over 50. And be aware that if you have a significant other you can both contribute to catchup. And the significant other can have their own HSA although the family total and individual catchups cannot exceed the annual limits.

Small correction, HSA catch up is available starting at 55, not 50 as it is for IRAs and 401ks.

 

[PaunchyPirate]

Thanks everyone. I’m retired, so no employer contributions or considerations to consider. And I am 61, so I qualify for the catch-up. So after creating the HSA at Fidelity this morning, I also initiated a funding for the full $5,150 I can contribute. I think I’m all set.