Originally Posted by fh2000
My HSA account with old Megacorp is invested in a Vanguard fund and they charge 2 fees total about $11 per month. I recently opened a Fidelity HSA account. I want to transfer old HSA account to Fidelity and I was told that I can only transfer accounts with cash. I will have to sell the fund first in my old HSA account before transferring to Fidelity.
I am in California which taxes HSA account like a cash account. Selling my fund will incur a state capital gain. I am trying to manage my MAGI for ACA subsidy. I think increasing my state income does not affect my overall federal MAGI per ACA subsidy. But I want to ask this question here to make sure there is no impact to federal MAGI.
Does it incur a gain when you change investments to cash, even if you do not transfer? Then transfer?
You do not actually take possession of the money, similar to an IRA rollover.
I transferred my HSA to Fidelity a year or so ago. No 1099, just a simple transfer.
FIRE no later than 7/5/2016
at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!