I’m just starting to educate myself on investing in my HSA. I will do my best to explain my situation. I have an employee HealthEquity HSA account with 15k and I want to invest some of it, but I noticed that HealthEquity has some high fees. Research has shown that many people have moved the HealthEquity HSA to Fidelity because of the low fees. Am I able to move my HealthEquity HSA to Fidelity without even investing yet? Thank you for your time, I’m off to learn more.
I am 43. Male. Healthy. I get a yearly check up. No major family health issues.
Fidelity will take a transfer. Question is, can you transfer the HealthEquity account while still employed at your current employer. Your option also is to open a Fidelity HSA and make contributions to that account to whatever dollar limit you are restricted to. Does your employer kick in money for your HSA? If so, that amount counts towards your annual total limit.
AL is entitled to transfer money to Fidelity HSA as often as desired. I don’t recommend cleaning it out or else the account might be shut down. Still do the payroll deduction into Health Equity, then occasionally move cash into Fidelity. The employer HSA will have a special transfer form, it must be a custodian to custodian transfer. I did this all the time. Before the market decline I had $50,000 built up in nine for retirement. It’ll come back. I can’t make contributions at my new employer they don’t have an HSA
This 2021 article may be helpful to you assuming Fidelity has not changed the process for opening the HSA . Although the title is Fidelity vs. Lively, the author includes step by step screenshots showing how he opened an HSA at Fidelity and funded the HSA.
Which fees are you worried about at HealthEquity? They charge me $3/mo to invest. I could move to Fidelity to avoid that, which I considered after reading WCI’s article linked above. Here’s why I didn’t (and still haven’t):
My employer puts money into the HE account every month, and my contributions go to HE. Even if I transfer everything over to Fidelity today, I’ll have to do that periodically as long as I’m employed.
HE charges a fee to do the transfer. I can’t find the fee right now, but it was probably $25 or $50. When compared to the $36/year I pay in fees at HE, it just wasn’t worth the trouble.
I could contribute directly to Fidelity, rather than to HE through payroll deduction, but I’d give up the savings on Medicare to do that (and you might also have to give up savings on Social Security if you do that). The Medicare premium savings offset the $36/year fees.
@AustinBonds I will look into my restrictions while still employed. The option you mention. Are you referring to opening a second account or making the Fidelity HSA my main? I max out my HE HSA as a single person. My employer does kick in a dollar amount weekly.
@ochotona Nine HSA accounts? Wow! I didn’t think that was possible.
p1g1 I will print the article for my notes.
ratbert2k All the fees. It sounded like it was beneficial to switch over to Fidelity. But I still need to find out what are all the fees for each HSA.
Ha ha ha. I read that as a typo for “mine.” But there’s no particular limit to the number of HSA accounts a person can have, so I guess he could have nine accounts.
I was doing a quarterly xfers from my employer HSA to a better HSA, and I finally moved it all to Fidelity when they started HSAs, but I can no longer make contributions… no HDHP.
Can you transfer your HSA to Fidelity while still employed? Maybe max out the HSA at work and get the tax and match benefits and then transfer to Fidelity where you have much better lower expense choices. Not sure if your employer’s HSA sponsor will charge you a transfer fee. Bottom line is that Fidelity HSA is a beautiful thing.