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HSA Question
Old 10-18-2020, 07:28 AM   #1
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HSA Question

I left MegaCorp in 2019 and but kept my HSA with the same administrator. Since leaving MegaCorp, they are charging me a $4.50/month "Benefit Admin Fee" and $1.25 paper surcharge fee. I take one medication that costs about $5.00/month, so the expenses of keeping this account are more than what I actually spend on medical expenses.

Does anyone have any suggestions on less expensive options?

How does a person go about transferring to a new HSA administrator to avoid it looking to the IRS like the funds were withdrawn for non-medical expenses?

Thanks.
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Old 10-18-2020, 07:34 AM   #2
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We use Health Equity. Been pretty happy with them.
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Old 10-18-2020, 07:35 AM   #3
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I transferred my HSA from Optum Bank to Fidelity last year in September. The transfer was smooth, it took about two weeks.

I first opened a HSA account at Fidelity, using their website. There is a Transfer of Assets form to fill out. I electronically signed it with a mouse, and submitted the form via Fidelity's website, following their HSA transfer instructions.

I have been charged no fees at Fidelity, and I have access to all funds as far as I can tell. I have my entire HSA balance invested, nothing is sitting in a bank-type account.

Here is a thread on that subject.: https://www.early-retirement.org/for...nts-94781.html
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Old 10-18-2020, 07:51 AM   #4
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Quote:
Originally Posted by freedomatlast View Post
I left MegaCorp in 2019 and but kept my HSA with the same administrator. Since leaving MegaCorp, they are charging me a $4.50/month "Benefit Admin Fee" and $1.25 paper surcharge fee. I take one medication that costs about $5.00/month, so the expenses of keeping this account are more than what I actually spend on medical expenses.

Does anyone have any suggestions on less expensive options?

How does a person go about transferring to a new HSA administrator to avoid it looking to the IRS like the funds were withdrawn for non-medical expenses?

Thanks.
Yes, Fidelity. No fees.
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Old 10-18-2020, 08:14 AM   #5
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Another vote for Fidelity.
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Old 10-18-2020, 08:20 AM   #6
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Optum to Fidelity here as well.
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Old 10-18-2020, 08:21 AM   #7
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I've started the application process at Fidelity.
For those that have an HSA at Fidelity, did you choose the Fidelity Govt Cash Reserves option or the FDIC Insured Deposit Sweep Program option?

Also, do you then get a credit or debit card to charge your medical expenses to?
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Old 10-18-2020, 08:27 AM   #8
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Moving HSA is similar to moving IRA. https://smartasset.com/checking-account/hsa-rollover

Direct transfer is probably the best. Sometimes there is a charge from the account you are leaving. You can also do the indirect rollover......if you have checkwriting on the HSA, you can just write a check to the new custodian or to yourself...........you have 60 days to do the rollover and can only do that once every 365 days.

IRS won't know that you didn't just withdraw the funds but you will have the supporting docs to show what you did (if you save them).
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Old 10-18-2020, 08:45 AM   #9
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Quote:
Originally Posted by freedomatlast View Post
I've started the application process at Fidelity.
For those that have an HSA at Fidelity, did you choose the Fidelity Govt Cash Reserves option or the FDIC Insured Deposit Sweep Program option?

Also, do you then get a credit or debit card to charge your medical expenses to?
I was also perplexed by the cash account choice. All I came away with after digging was that it didn't matter. You can request a debit card, but since I treat my HSA as a "super Roth", I didn't get one.
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Old 10-18-2020, 08:51 AM   #10
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FYI - Morningstar has a recent article on various HSA providers
https://www.morningstar.com/articles...viders-of-2020

Cheers...
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Old 10-18-2020, 09:09 AM   #11
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Quote:
Originally Posted by freedomatlast View Post
I've started the application process at Fidelity.
For those that have an HSA at Fidelity, did you choose the Fidelity Govt Cash Reserves option or the FDIC Insured Deposit Sweep Program option?

Also, do you then get a credit or debit card to charge your medical expenses to?
I looked into this a couple of years ago when I setup our accounts, and I seem to recall that the Gov't Cash Reserves will pay a tiny amount more. Since we don't keep any cash in our accounts (we are investing all funds and planning to use them to pay Medicare premiums in the future), it didn't matter which choice we used.

You can either get a debit card and use that when paying for expenses, or you can save up your receipts and make a withdrawal or write yourself a check at the end of the year.
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