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Old 10-10-2019, 10:22 AM
KneadToKnow is offline
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Your experiences with HSA bank changes?


My employer is handing us a bunch of healthcare changes starting January 1, including a change in our HSA bank. I'll find out next week what the mechanics of our transition will be, but to mollify myself until then, I'd like to hear experiences any of you have had in changing HSA banks and/or HSA investment accounts.
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Old 10-10-2019, 10:51 AM
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You can “roll-over” your HSA balances to a new HSA account at a different bank with relative ease. There should be links at each respective accounts that tell you how to do it. If not, your benefits group should be able to help.

I personally, treat my HSA account like an additional 401k account. I max out my contributions, and invest the funds similar to the way I do my 401k. I don’t currently use these funds for current medical spending as I believe that I will have no problem spending it during retirement.
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Old 10-10-2019, 11:05 AM
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I've been through it and it wasn't a huge hassle. Original HSA was with a podunk local bank with zero investment options. When my company switched to the new bank the default was that current balances in the old HSA would just stay there. Given that the new HSA had investment options, I opted to transfer it over by submitting the proper form and incurring a small fee for closing the original account (seems like it was $10-$20 or so). Very happy with the new one and the investment options there, since, like Omar Little, I treat it as an additional retirement account.

Now, if my original HSA had an investment option, I'm sure that would have added a few wrinkles.
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Old 10-10-2019, 11:38 AM
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I didn't like the fees that the default HSA bank charged, so I went out and opened my own at a local credit union and told HR to send my HSA payments there instead. I had to fill out a form or two. It wasn't bad.
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Old 10-10-2019, 02:00 PM
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My HSA changed banks several years ago. My memory is it was pretty seamless with one exception, I remember receiving a confusing Tax form because the first bank considered the roll over a disbursement. Otherwise I don't remember any issues.
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Old 10-10-2019, 02:18 PM
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Thanks for the input, everyone. I'll report back how things go.
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Old 10-17-2019, 11:42 AM
KneadToKnow is offline
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Well, I suppose it could be worse. We'll have to liquidate all our investments, put the money back in the HSA bank, let them automatically transfer the balance to the new HSA bank, and then choose from our new investment options.

Mrs. ToKnow has TDAmeritrade, so she has a powerful set of rules she can put in place between now and the deadline to ensure that (in the event of a downturn) she sells before losing any of her contributions or (in the event of a surging economy), she can sell once her value hits a new high. Alas, I have Devenir and my only option appears to be to tell them to sell it all and transfer back when I click the button. The perils of diversifying, I guess.
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Old 10-17-2019, 12:01 PM
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You should only be out of the market for about a week to 10 days. Could be a plus if there is a market downturn during that duration.
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Old 10-18-2019, 11:49 AM
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Quote:
Originally Posted by Omar Little View Post
You should only be out of the market for about a week to 10 days. Could be a plus if there is a market downturn during that duration.
Fingers crossed!
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