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Switch HSA from employer plan to Fidelity

Posted on 5/26/24 at 3:56 am
Posted by meeple
Carcassonne
Member since May 2011
9455 posts
Posted on 5/26/24 at 3:56 am
My employer changed HSA companies and they have higher fees. I max it out, and they contribute around $1000/yr.

Any benefit of going to fidelity? How do taxes work? Do I contribute after tax money and then get the taxes back on that year’s tax return?
Posted by Jag_Warrior
Virginia
Member since May 2015
4173 posts
Posted on 5/26/24 at 1:13 pm to
I had a similar issue when I was employed. Since your employer contributes a certain amount per year (mine also made an annual contribution), they likely will only contribute to the account that they set up. But you should be able to make transfers into an HSA account that you establish with another provider. That’s what I did.

My payroll deductions for the HSA still went into the company provided HSA account. Once or twice a year, I’d transfer all but $1000 or so into the HSA that I established. In that account I had a wider selection of ETFs, plus I could buy individual stocks and even trade options. And when I left the company, I just transferred the remaining balance into the account that I set up.
Posted by Jag_Warrior
Virginia
Member since May 2015
4173 posts
Posted on 5/26/24 at 1:16 pm to
quote:

Any benefit of going to fidelity? How do taxes work? Do I contribute after tax money and then get the taxes back on that year’s tax return?


If you are able to do it the way that I described above, you won’t need to worry about any of that. Just always remember that the company’s contribution counts toward your maximum annual HSA contribution.
Posted by StreamsOfWhiskey
The Woodlands, TX
Member since Jun 2013
613 posts
Posted on 5/26/24 at 9:00 pm to
Methinks you work for a major and can move to Fidelity without any fees if done here shortly. Am I warm??
Posted by Ann Arbor Tiger
Land of "GO BLUE"
Member since Jan 2004
185 posts
Posted on 5/26/24 at 9:34 pm to
The company cannot make you use their HSA provider. It is not like a 401k.
Posted by meeple
Carcassonne
Member since May 2011
9455 posts
Posted on 5/27/24 at 2:36 pm to
quote:

Once or twice a year, I’d transfer all but $1000 or so into the HSA that I established.

Is this easily done online?
Posted by ApexHunterNetcode
Member since Aug 2023
285 posts
Posted on 5/27/24 at 6:39 pm to
quote:

The company cannot make you use their HSA provider. It is not like a 401k.


I had no idea, thanks for calling it out. I always just rolled into employer options. Time to do some research on HSA providers and do a TOA to move out of crappy work account.
Posted by Jag_Warrior
Virginia
Member since May 2015
4173 posts
Posted on 5/28/24 at 7:22 am to
quote:

Is this easily done online?


It probably depends on the provider. But with the three different providers that my company used in the time that I was there, I was always able to do the transfers online.
Posted by meeple
Carcassonne
Member since May 2011
9455 posts
Posted on 5/28/24 at 8:02 am to
quote:

three different providers that my company used in the time that I was there, I was always able to do the transfers online.

How often did you transfer over. Looks like the request to transfer (to Fidelity) is started with Fidelity, and they obtain it from the company provider.
Posted by Jag_Warrior
Virginia
Member since May 2015
4173 posts
Posted on 5/28/24 at 8:29 am to
As best I can recall, I started out by doing it once per year; I let the company’s contribution hit and let my payroll contributions build up, then I’d make the transfer late in the year (I think I used Optum for my own HSA account back then). I can’t remember how I linked the accounts initially, but yes, I did have to do some online setup work with Optum.

Eventually, after speaking with my HR rep, I realized that I could transfer the money into my self-created account as often as I liked. So then I began transferring out in the middle and at the end of each year. Mainly so that I could more often deploy the money into investments (or trading strategies) that suited me.
Posted by Larry Gooseman
Houston
Member since Mar 2014
2659 posts
Posted on 5/28/24 at 9:05 pm to
You work for CVX baw?
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