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Fidelity HSA, anyone switch yet?

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  •  treesrock 
    Participant
    Status: Physician
    Posts: 232
    Joined: 08/14/2017

    Earlier this year WCI ranked HSA providers, but I just stayed with my employers preferred plan because the differences were minimal.  But now Fidelity seems to have entered the HSA market.  This is appealing considering I have my retirement accounts through Fidelity as well, so I’m hoping this is one less account to keep track of.

    Anyone make the switch yet?

    #167146 Reply
     Peds 
    Participant
    Status: Physician
    Posts: 2661
    Joined: 01/08/2016

    i dont think they are even open until next week.

    #167152 Reply
     spiritrider 
    Participant
    Status: Small Business Owner
    Posts: 1415
    Joined: 02/01/2016

    They went live with individual retail HSA accounts on 11/15.

    Full brokerage access, no fees and can invest full amount.

    #167153 Reply
    Liked by Hank, Zaphod, Peds
    Lithium Lithium 
    Participant
    Status: Physician
    Posts: 926
    Joined: 02/15/2016

    I will probably give this a shot next week, depending on how difficult it is to get around Saturna’s hefty transfer fees.

    #167158 Reply
     jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 1676
    Joined: 03/01/2018

    Yes many are switching

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

    jump forward to posts beginning 11/15

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #167159 Reply
     billy 
    Participant
    Status: Physician
    Posts: 126
    Joined: 04/07/2016

    Do you need to continue contributing to the HSA in order to open it or can you just transfer any old HSA funds into it (I am no longer in a High deductible plan after switching employers)

    #167162 Reply
     spiritrider 
    Participant
    Status: Small Business Owner
    Posts: 1415
    Joined: 02/01/2016

    you can transfer existing HSAs when not HSA eligible.

    #167164 Reply
    Liked by billy
     orthodds 
    Participant
    Status: Dentist
    Posts: 84
    Joined: 11/07/2017

    Spiritrider, who are you? I ask because you always seem to provide the best, most on-point answers on this forum.

    #167166 Reply
     treesrock 
    Participant
    Status: Physician
    Posts: 232
    Joined: 08/14/2017

    Spiritrider, who are you? I ask because you always seem to provide the best, most on-point answers on this forum.

    Click to expand…

    This is a mystery that these forums and the Boglehead forums have been asking for years.  His wealth of knowledge is incredible and impresses even the CPAs on this forum.

    In other news, seems like Vanguard is jumping into the HSA fray as well.  But Fidelity’s platform seems hard to beat.

    https://www.investmentnews.com/article/20181115/FREE/181119932/vanguard-rolls-out-hsas-for-401-k-participants

    #167173 Reply
     GasFIRE 
    Participant
    Status: Physician
    Posts: 140
    Joined: 01/08/2018

    This is great news since most of my investment accounts are at Fidelity. Both my orphaned HSA at Optum and my wife’s active HSA at HSA Bank want you to maintain a significant cash balance to obtain low fee investment access so the decision to switch will be an easy one.

    #167174 Reply
     Bmac 
    Participant
    Status: Physician
    Posts: 275
    Joined: 10/21/2017

    Yes. Immediately on the 15th. I have one HSA with with a previous employer at Health Savings Administrators which I am in the process of transferring to my new Fidelity HSA. Although the fees with Health Savings Administrators are not outrageous ($45/year administration fee and 6.25 basis points/quarter) they do start to really add up with a mid five figure account balance. Seems an easy call to switch. I have another HSA at Health Equally with my current employer that is smaller and I may either leave for now or more likely transfer annually. Transferring more frequently would be onerous (and costly as I believe there is a $25 transfer fee).

     

     

    #167175 Reply
    Liked by Zaphod
     jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 1676
    Joined: 03/01/2018

    The vanguard entry seems limited only to those with 401k services there. I have a self directed 401k there but assume I won’t be able to have an HSA there.

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #167181 Reply
     spiritrider 
    Participant
    Status: Small Business Owner
    Posts: 1415
    Joined: 02/01/2016

    Spiritrider, who are you? I ask because you always seem to provide the best, most on-point answers on this forum.

    Click to expand…

    Just someone with an inquisitive mind, a penchant for research and maybe a little bit OCD about finding the citations in the IRC, CFR and/or IRS guidance. I am just some random anonymous guy on the internet with way too much time on my hands. For clarity, I am not a lawyer, CPA, retirement plan specialist or candlestick maker. So like in medicine, second (especially professional) opinions are a good backup and I am not responsible if you burn your house down making candles.

    I am more like @WCI, @peds, @dmfa, @mpmd, @jacoavlu and others than anything else. I think they all started doing a specific deep dive for their own purposes. Then decided they wanted to more thoroughly understand all tax and tax-advantaged account issues facing them. Then some other member posts a question not involving anything they need for their own use, but they are curious and research the answer for them. At this point they are done.

    I started 50 years ago reading IRS publications, and Form Instructions front to back to help my mom do my dad’s business accounting and taxes. Then the internet exploded and you could read the Internal Revenue Code (IRC) and Code of Federal Regulations (CFR), research IRS Revenue Rules, Notices, Announcements, etc..

     G 
    Participant
    Status: Physician, Small Business Owner
    Posts: 1248
    Joined: 01/08/2016

    I have an Optum account that is not too bad.  Can invest anything over $2k, have Vanguard options for investing, and no account fees.  My company is considering linking to the Fido HSA, so I could contribute pre-tax money as opposed to post-tax that I’m doing now.  Couple questions that I couldn’t find on the bogleheads string:

    1) Not sure if I could ramp up the contribution amount so that it is funded with the first payroll.  Or is this company specific?  Back of the envelope calculations would suggest losing/equalizing that pre-tax benefit when compared to the time in the market (i.e. $7k contribution on Jan 2 vs 7k over 12 months).

    2) What happens when I separate from the company–Can I still contribute there (assuming I have an HSA-qualified healthcare plan) or do I need a private account?

    3) Are the investment options good?  Such as the Fido index funds or their zero cost funds?

    #167188 Reply
     spiritrider 
    Participant
    Status: Small Business Owner
    Posts: 1415
    Joined: 02/01/2016

    2) Unlike a 401k, an HSA like an IRA is a individual account. From day one it is your account regardless how the contributions are made. Your company uses a specific HSA custodian for their simplicity. If you go to another employer contributions through their cafeteria plan may go to another custodian. you can then transfer or rollover once per twelve month period to Fidelity. You lose the FICA exemption, but you could contribute directly to Fidelity as long as you are HSA eligible.

    #167192 Reply

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