I have an HSA I opened several years ago that I try to max, has about $28k. My provider is WageWorks (now HealthEquity). This provider allows me to do investing, but they charge a monthly fee of 0.03%, capped at $10 per month. For me this works out to about $8 per month, or $100 per year. Here's exactly how they state this:
Investment admin fee: 0.03% per month on the average daily investment balance. The Investment admin fee has a cap, meaning you will never pay more than $10.00 per month.
I don't like this, and I am tempted to move my HSA to Fidelity that won't charge me anything per month. Fidelity even says they can do a direct trustee-to-trustee move in 2-5 weeks, which is easier than the approach I read here: https://thefinancebuff.com/how-to-rollover-an-hsa-on-your-own-and-avoid-trustee-transfer-fee.html
But given that my contributions will continue to deposit at HealthEquity, is this really worth it? I'd have to do this maybe once a year.
Of course, it will matter more when my balance is higher, say $50k or $100k.
Another option is to turn off the investing option at HealthEquity and only keep 1 year's deductible's worth of money in it, and then move the rest of the money to Fidelity from time to time.
Anyone have any other thoughts on this?
HSA Question
byu/InsideSuccessful680 infinancialindependence
Posted by InsideSuccessful680
5 Comments
> Another option is to turn off the investing option at HealthEquity and only keep 1 year’s deductible’s worth of money in it, and then move the rest of the money to Fidelity from time to time.
I do this. I transfer from my Inspira HSA to Fidelity HSA about twice a year or so. Fidelity makes the transfer super easy and I like being able to invest my HSA funds with Fidelity, fee-free.
I have the exact same situation. I move mine to fidelity, and I do it after it reaches a few thousand so like twice a year. I don’t have it invested at health equity, and you could argue that I’m losing more that way than a fee might be, but the interface is bad and I hate interacting with it.
The twice-a-year Fidelity transfer trick is the move.
Do it now and you save $100 over the next year.
Is there any reason to stay at HealthEquity? Are they were your employer does their HSA? If not you can just leave.
I ran the math on this and turns out the breakeven is like $15k or something. In other words until your account reaches that you’re better off eating the 0.03% fee and investing it via health equity.
Also, many plans don’t allow HSA transfers if you’re still with the same employer