Need to open new HSA

[tylerjw12]

I have a couple of HSAs from old employers I can no longer contribute to. So I need to open up a new HSA (not employer sponsored). WCI recommendation lists Lively. I'm also reading Health Equity is good for individuals. Anyone with experience with either of these platforms? My priorities are:

- Low cost investment options (preferably Vanguard)
- Low monthly fees
- Bonus points if there is digital storage I can upload proof of medical expenses for later use

I'm using it primarily as a long-term investment tool, versus using it to pay current medical expenses. I may have only used HSA money twice in 8 years. Please save me from hours of reading "Best HSA" articles I search for on Google.

Also, one of my current HSAs has a 5 figure sum invested. Any pitfalls I should watch out for when moving funds out of one into the new?
Thanks!

[CordMcNally]

I’m not incredibly familiar with the Fidelity HSA but is seems to always be mentioned when talking about HSAs.

[jacoavlu]

I recommend fidelity. I don’t think they have document storage. Never checked. Even if they did I wouldn’t rely on it.

[spiritrider]

I have a couple of HSAs from old employers I can no longer contribute to. So I need to open up a new HSA (not employer sponsored).

I'm not sure if you meant this literally, but you can leave your assets in those HSA accounts indefinitely. While the employer may designate a financial institution (DFI) to receive HSA contributions. HSA accounts themselves are fully owned and controlled by employee.

After separation you will likely have to pay any administrative fees the employer has been paying. There is no limit to the number of HSA accounts you can have.

If you want more flexible low cost investment options, Fidelity is a top choice.

• There are no administrative fees.
• In most cases there are no longer any significant advantages of Vanguard index funds over equivalent Fidelity index funds in tax advantaged accounts.
• If you must have Vanguard index funds. Fidelity has no transaction fees for stocks, ETFs, etc. You can simply buy Vanguard index ETFs.

[Dogtor]

Following as I'm about to open an HSA (was thinking Fidelity) but interested in the digital storage option.

[GasFIRE]

Following as I'm about to open an HSA (was thinking Fidelity) but interested in the digital storage option.

Fidelity is an excellent choice. While they don't offer digital storage, I personally think it's safer to take a digital photo of your receipts and either email them to yourself or store them on your computer in a separate file or thumbdrive. There was a thread a few years ago from someone who had this feature but lost access to it after moving the HSA to another custodian.

[Dogtor]

Fidelity is an excellent choice. While they don't offer digital storage, I personally think it's safer to take a digital photo of your receipts and either email them to yourself or store them on your computer in a separate file or thumbdrive. There was a thread a few years ago from someone who had this feature but lost access to it after moving the HSA to another custodian.

Yeah it probably won't change my choice. It's just one of those things like the CE digital storage sites they have for veterinarians (I assume MDs also have these things) that are handy as a back up.

[tylerjw12]

spiritrider I was hoping you'd have an opinion on this!
I am still enrolled in QHDHP via DWs plan. They don't sponsor an HSA. So we have ability to contribute. I have two HSAs thru prior employers but neither allows me to contribute since I'm not an active employee. I prefer not to have these dollars spread across several accounts, as that's more fees plus complexity.

Sure I don't NEED to do it, but I really really want to.

Thanks all for the fidelity recs. Will check it out.

[HandFellow]

Health Equity, at least when I was with them, charged extra fees for the good passive funds. When WCI did his best HSA column, Health Equity was 11th or something. I moved mine to Fidelity and have been very happy.

[spiritrider]

spiritriderI have two HSAs thru prior employers but neither allows me to contribute since I'm not an active employee.

Are you sure about that? As I pointed out an HSA account is an individual account not subject to any employment.

There is nothing in the tax code or any IRS guidance that allows an HSA custodian to restrict HSA account owners from making contributions after separation from an employer that simply was using them as a DFI.

While there is nothing that explicitly prohibits this. I am not familiar such a restriction. I have had multiple HSA custodians and none of them had such a restriction.

[tylerjw12]

Are you sure about that? As I pointed out an HSA account is an individual account not subject to any employment.

There is nothing in the tax code or any IRS guidance that allows an HSA custodian to restrict HSA account owners from making contributions after separation from an employer that simply was using them as a DFI.

While there is nothing that explicitly prohibits this. I am not familiar such a restriction. I have had multiple HSA custodians and none of them had such a restriction.

Yes, I called the custodian and they confirmed the restriction. It's strange... them declining to take my money.