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Fidelity HSA, anyone switch yet?

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  • Avatar okayplayer 
    Participant
    Status: Physician
    Posts: 94
    Joined: 05/25/2016

    Maybe this was covered and I missed it, but any advice for us? My wife’s employer contributes some amount to her HSA annually on top of her maxed out family contribution (I want to say $500 or so). In order to take advantage of this (and payroll deduction), we have been using her HSA through her employer in spite of poor investing options/high fees/etc.

    Could we make it the best of worlds by continuing to use her HSA through work but once a year or whatever rolling that 7k over into her own individual Fidelity HSA account? She has no plans to leave her current employer.

    #167397 Reply
    Avatar spiritrider 
    Participant
    Status: Small Business Owner
    Posts: 1756
    Joined: 02/01/2016

    ^^^ Yes, you can rollover once per twelve month period for free and unlimited trustee – trustee transfers. Your employer’s custodian may charge a fee for the latter, most commonly $20 – $25.

    #167407 Reply
    Avatar okayplayer 
    Participant
    Status: Physician
    Posts: 94
    Joined: 05/25/2016

    Thx. I imagine it is probably worth it now that our HSA balance is 20k or so.

    #167605 Reply
    Avatar snowcanyon 
    Participant
    Status: Physician
    Posts: 473
    Joined: 10/22/2018
    medical school scholarship sponsor

    What happens if you have receipts scanned in, but not reimbursed? Presumably one needs to do this again at Fidelity?

    #167607 Reply
    Avatar spiritrider 
    Participant
    Status: Small Business Owner
    Posts: 1756
    Joined: 02/01/2016

    Ultimately, you are responsible for maintaining proof of the:

    1. qualified medical expense (EOB, bill, receipt, etc…)
    2. payment (financial account statement, cancelled check, receipt, etc…)
    3. that it was not claimed somewhere else (EOB and tax return (Schedule A))

    Any custodian storing this information is only providing this as a service for you. You either can retrieve it from the prior custodian(s) or reconstruct it. I don’t yet know what Fidelity offers for such a service. I highly doubt there is anyway to directly transfer this information.

    #167616 Reply
    Avatar snowcanyon 
    Participant
    Status: Physician
    Posts: 473
    Joined: 10/22/2018

    Ultimately, you are responsible for maintaining proof of the:

    1. qualified medical expense (EOB, bill, receipt, etc…)
    2. payment (financial account statement, cancelled check, receipt, etc…)
    3. that it was not claimed somewhere else (EOB and tax return (Schedule A))

    Any custodian storing this information is only providing this as a service for you. You either can retrieve it from the prior custodian(s) or reconstruct it. I don’t yet know what Fidelity offers for such a service. I highly doubt there is anyway to directly transfer this information.

    Click to expand…

    That’s what I figured. With FICA and the headache of losing all the info I’ve scanned in (I realize it’s just a convenience and not guaranteed), it’s not worth it to me, although the Fidelity plan sounds great. Curious as to what others are doing if they have a trail of unreimbursed receipts with their current plan? Are most folks who are doing this pretty much sure they will save their HSA for retirement medical expenses?

    #167620 Reply
    Avatar GasFIRE 
    Participant
    Status: Physician
    Posts: 179
    Joined: 01/08/2018

    Any custodian storing this information is only providing this as a service for you. You either can retrieve it from the prior custodian(s) or reconstruct it. I don’t yet know what Fidelity offers for such a service. I highly doubt there is anyway to directly transfer this information.

    Click to expand…

    That’s what I figured. With FICA and the headache of losing all the info I’ve scanned in (I realize it’s just a convenience and not guaranteed), it’s not worth it to me, although the Fidelity plan sounds great. Curious as to what others are doing if they have a trail of unreimbursed receipts with their current plan? Are most folks who are doing this pretty much sure they will save their HSA for retirement medical expenses?

    Click to expand…

    I scan or photograph my bill/statement and evidence of payment into an email to myself, which I then move into a separate folder. That way I’m not dependent on the custodian maintaining the documentation for me. I just turned in the transfer forms to start the process of moving both my wife’s and my own HSA to Fidelity. Since most of our investment accounts are there already, it’s more convenient with the added benefit of not having to maintain a minimum cash balance in an HSA “bank” account.

    #167674 Reply
    nachos31 nachos31 
    Moderator
    Status: Physician
    Posts: 421
    Joined: 01/12/2016

    Maybe this was covered and I missed it, but any advice for us? My wife’s employer contributes some amount to her HSA annually on top of her maxed out family contribution (I want to say $500 or so). In order to take advantage of this (and payroll deduction), we have been using her HSA through her employer in spite of poor investing options/high fees/etc.

    Could we make it the best of worlds by continuing to use her HSA through work but once a year or whatever rolling that 7k over into her own individual Fidelity HSA account? She has no plans to leave her current employer.

    Click to expand…

    Yes, others have described doing exactly the same. Just to clarify, employee and employer contributions in aggregate cannot exceed the IRS annual limitation. I imagine your wife’s benefits folks adjust for the employer contribution but if not you may be over-contributing.

    #169748 Reply
    ACN ACN 
    Moderator
    Status: Physician
    Posts: 579
    Joined: 01/08/2016

    Just transferred my TD Ameritrade (HSA Bank) to Fidelity using the online transfer tool.  Said about 1 week for the transfer to occur.  All my funds at TD Ameritrade are in VTI currently.

    If you're ever having a bad day, just remember in 1976 Ronald Wayne sold his 10% stake in Apple for $2,300.

    #171003 Reply
    Liked by Zaphod
    Avatar Hawkeye225 
    Participant
    Posts: 112
    Joined: 09/05/2016

    Yep, already opened account and money is in it.  I had spoken to a Fido rep several months ago and got the feeling that this was coming.  Been waiting.  It’s a no brainer if it’s available to you.

    #171103 Reply
    Avatar Redwings13 
    Participant
    Status: Resident, Physician
    Posts: 15
    Joined: 09/05/2017

    I am in the process of transferring from lively/TD ameritrade to fidelity. I was invested in VTI, but wondering what everyone is using once they transition to fidelity?

    #177989 Reply
    Avatar Bmac 
    Participant
    Status: Physician
    Posts: 295
    Joined: 10/21/2017

    ACN and Redwing13. Note that you will most likely need to liquidate the funds at your old HSA to cash before the transfer to Fidelity can occur. They will not transfer in kind. Even if you initiate the transfer via Fidelity. At least that’s what I had to do in order to transfer from HSA Administrators.

    #177994 Reply
    Avatar GasFIRE 
    Participant
    Status: Physician
    Posts: 179
    Joined: 01/08/2018

    I agree with @bmac that you’ll probably have to liquidate assets prior to transferring to Fidelity. I initiated the transfer for both my HSA at Optum Bank and my wife’s at HSA Bank on 11/19. Optum liquidated my MF on 11/28, cut a check on 12/2, sent by snail mail which arrived in my Fido account 12/12. OTOH, HSA Bank hadn’t done anything as of 12/12. Looked around on their website and found out they only transfer cash. Apparently they don’t liquidate for you, must be done yourself, which we did. They finally sent the check on 12/24 which arrived on 12/31.  I was surprised by the use of snail mail, no electronic transfer. The process is definitely slow, but at least it was done correctly.

    #178027 Reply
    Avatar Andrew 
    Participant
    Status: Physician
    Posts: 41
    Joined: 12/02/2016

    I have opened new HSA with Fidelity for 2019, and fully founded -7k. I have an HSA with HSA bank for 2018. Since market is down, would you keep both accounts for now. I would lose 1k by doing roll over now. Any thoughts?

    #178336 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4313
    Joined: 05/13/2011

    Switched yesterday. Post to follow.

    My HSA Bank/TD Ameritrade VTI will be transferred in kind. I’ll figure out what to do with it later.

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #178432 Reply

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