Fido hsa

[Finance Dave]

I currently have a modest-sized HSA at Benefit Wallet. I'm in the process of moving it to FIDO. I have already started the process...should be complete in about a week (first had to sell investments within Benefit Wallet).

My question is around how to pay for health care expenses out of the FIDO HSA. With BW, we had a debit card we could use...easy. Does FIDO have something similar? Or will they provide me with checks to write? Or some other method?

Thank you

 

[audreyh1]

Yes, Fido HSA provides a debit card on request.

We have mostly done ours electronically through scheduled bill pay. We are using it to pay Medicare premiums so we know amount and due dates ahead of time.

There is also the option of reimbursing yourself for already paid medical expenses.

 

[gauss]

Yes -- If you are familiar with the offerings of a Fidelity brokerage or IRA account, then the HSA account will look very familiar.

There is none of the nonsense that I have seen at a string of other HSA custodians prior to Fido (ie fees, limited, proprietary MF choices only, multiple service providers/platforms that money would have to be manually moved through to invest/withdrawal. etc).

-gauss

 

[Aerides]

I always pay first, then reimburse myself. That way I can leave the funds in the HSA for as long as I like, and still get the 2% bonus or whatever on my credit card.

 

[Finance Dave]

Some very excellent points, thank you all!

A follow up question. If you reimburse yourself, what records are needed? I assume you simply do a transfer from FIDO HSA to your checking account, and then keep receipts in case of an audit?

 

[audreyh1]

Right, that basically it.

You will get a tax form that shows any disbursement during a given year and it’s up to you to keep the records for that tax year showing that they were for qualified medical expenses.

 

[COcheesehead]

I always thought for taxes that credit card points are considered a discount. So if you reimburse yourself is it at the billed price or what you actually paid?

 

[Aerides]

I always thought for taxes that credit card points are considered a discount. So if you reimburse yourself is it at the billed price or what you actually paid?

Credit card point are rewards in every other tax question, and not taxable. So, perhaps someone like Cindy who knows more about it will chime in. I reimburse myself the amount of the medical bill, the amount which my insurer says is mine to pay, and which I paid.

 

[COcheesehead]

Credit card point are rewards in every other tax question, and not taxable. So, perhaps someone like Cindy who knows more about it will chime in. I reimburse myself the amount of the medical bill, the amount which my insurer says is mine to pay, and which I paid.

Right, rewards are not taxable, but in your situation and I do not know the answer…thinking out loud…what about the difference between what is billed and what is paid. In most cases its not a lot of money, but in others it may be.

 

[audreyh1]

Whatever is on the credit card receipt. No need to complicate things!

 

[Finance Dave]

Thank you all

 

[pb4uski]

I always pay first, then reimburse myself. That way I can leave the funds in the HSA for as long as I like, and still get the 2% bonus or whatever on my credit card.

+1. After I do my taxes I document my health care expenses for the prior year and the do a withdrawal from our HSA. I alternate the withdrawals between my HSA and DWs HSA.

I keep the analysis and all supporting EOBs and receipts in a file in case the IRS comes asking about it.

 

[Fermion]

My HSA started charging me a $3 a month fee and also has crappy investment options (which did save me from losing a lot in their crappy bond fund). I just initiated the move to Fidelity.

 

[mz44]

My HSA started charging me a $3 a month fee and also has crappy investment options (which did save me from losing a lot in their crappy bond fund). I just initiated the move to Fidelity.

Mine was charging $5 a month. HSA now in fidelity.