HSA providers

[Brainonska511]

I'm looking at going with my company's HDHP this coming year since my yearly medical expenses are extremely low and I have more than enough to cover the deductible if something were to occur.

However, with the HDHP plan, I become eligible under IRS rules to open an HSA, which seems to me to be a better option over an FSA, where the money evaporates at year's end. I don't believe my company sponsors the HSA for this particular plan, so I'll likely need to find my own provider. Any recommendations?

 

[tynopik]

the archived copy of the fatwallet HSA thread is a decent place to start
https://web.archive.org/web/20170927172856/fatwallet.com/forums/finance/542257

 

[dullard]

HSAs are great in concept, since they are triple tax benefitted. But, HSA providers are often not very good. Watch out for (1) high fees for not meeting their minimum deposit and (2) high fees for providing only expensive, terrible investment choices.

My advice for the first fee issue is to go big or don't do it at all. If there is a minimum $5000 balance, put $5000 in. Putting just $100 in an having a $5/month fee means at the end of the year you have almost nothing left. If you can't swing enough in one go to meet the minimum balance, start a regular savings account outside the HSA. Then put your HSA money into it. At the end of December, move the savings account money into the HSA. By then, it should be big enough to avoid the fee, or if there is a fee, at least it was for only one month.

My advice for the second fee issue is to look very carefully at what investment options there are. Most are really bad investment selections. A very few offer cheap, good quality investments. I was at one HSA that got sold off to Optum Bank. They offer low-fee Vanguard funds. Is Optum Bank the best? Probably not, but it is far better than most other options that I have seen and I haven't switched yet.

 

[Xcobra]

Also, to be eligible for an HSA, your employer has to offer a HDHP. So basically the HSA is attached to it. Otherwise, you're stuck with whatever plan your employer offers.

 

[rh71]

nvm

 

[tynopik]

Also, to be eligible for an HSA, your employer has to offer a HDHP. So basically the HSA is attached to it. Otherwise, you're stuck with whatever plan your employer offers.

You don't have to use the HSA they offer

 

[Brainonska511]

You don't have to use the HSA they offer

Yeah. In fact, my employer only offers an HSA with a more expensive HDHP ($1500 deductible).

The only reason you might get stuck with an employer one is if they to their contribution to a specific provider.

 

[deadlyapp]

I use benefitwallet, as it is what is provided by my heath insurance. I've been relatively happy with it - as long as you contribute there are no maintenance fees, no matter what the balance is, and if you stop contributing, it's only $2.25/mo, so not enough for me to get too pissed off about. It earns interest normally (about .087%) like a bad checking account, but you can take the balance and invest it. There are something like 25 different funds, with no transaction fees, but it does cost $2.90 a month.

 

[Orsorum]

You can also maintain multiple HSAs, for example if you want to take advantage of an employer benefit (free money is free money) but want to use another provider for the core of your HSA holdings. I have a BofA HSA (ugh) for the employer benefit and a Health Equity HSA (grandfathered in since Alliant CU disposed of its HSA portfolio). It's incumbent upon you to keep track of your contributions for the year to ensure you don't exceed the annual limits, but that's not terribly challenging for most.

 

[Brainonska511]

You can also maintain multiple HSAs, for example if you want to take advantage of an employer benefit (free money is free money) but want to use another provider for the core of your HSA holdings. I have a BofA HSA (ugh) for the employer benefit and a Health Equity HSA (grandfathered in since Alliant CU disposed of its HSA portfolio). It's incumbent upon you to keep track of your contributions for the year to ensure you don't exceed the annual limits, but that's not terribly challenging for most.

I've thought about that too. My employer is offering it through Fidelity and would cover the maintenance costs and fund it with $250, but that only applies to the more expensive "HDHP" ($1500 deductible, but costs $1200 more per year in premiums). I would have gone the Fidelity route if they offered the HSA with the cheaper HDHP.

 

[Fenixgoon]

i have optum bank for my HSA. they seem decent. i spread my investments across a number of funds. up 8.5% over the last 6mos

 

[rh71]

Does anyone know if I can still open an HSA even though my wife has an FSA? She covers herself under her plan and I'll have my own, but we file taxes jointly. I'm reading you can't because we'd be double-dipping the tax deduction benefits.

Link

I really just want one because my company puts $800 in it for my use. Can I still technically have one but not tax-deduct it? I was also told it's more a repository rather than an investment account so I'm not going to contribute much else into it. It also carries over year to year (additional $800 from company).

 

[dullard]

Does anyone know if I can still open an HSA even though my wife has an FSA? She covers herself under her plan and I'll have my own, but we file taxes jointly. I'm reading you can't because we'd be double-dipping the tax deduction benefits.

Link

I really just want one because my company puts $800 in it for my use. Can I still technically have one but not tax-deduct it? I was also told it's more a repository rather than an investment account so I'm not going to contribute much else into it. It also carries over year to year (additional $800 from company).

Since FSAs generally cover spouse expenses, you are therefore disqualified from having an HSA (which says you have no coverage other than a high deductible health care plan). But, your wife could have a limited purpose FSA that only covers expenses that don't affect HSAs (vision and dental).

But, you can do the reverse! Instead of funding the FSA, fund the HSA. Then use your HSA to pay for both your and your wife's expenses. The HSA is never worse than an FSA and can only be the same (if you contribute and then spend the money) or better (if you contribute then invest the money). So this is the route you should use.

Some HSAs are just simple savings accounts with no investment options. But, if you do wish to invest it, you are not limited to using just the HSA that your employer provides. You can also upen up an HSA from any company that provides them (one that does let you invest it).

 

[Brainonska511]

Just to update: I ended up with HSA Authority from Old National Bank: no monthly fee for the HSA checking account; $1000 minimum to open an investment account ($36/yr with a decent set of fund options, including some Vanguard funds, and no minimum to maintain in the checking account portion). The only downside I see is you have to call to transfer money to the investment account, but I don't plan on doing that often, so that seems like nbd.

 

[s0me0nesmind1]

Just to update: I ended up with HSA Authority from Old National Bank: no monthly fee for the HSA checking account; $1000 minimum to open an investment account ($36/yr with a decent set of fund options, including some Vanguard funds, and no minimum to maintain in the checking account portion). The only downside I see is you have to call to transfer money to the investment account, but I don't plan on doing that often, so that seems like nbd.

Seems kinda crappy? especially with the $36/yr fee just to do investments - on top of investment fund fees.

 

[Brainonska511]

Seems kinda crappy? especially with the $36/yr fee just to do investments - on top of investment fund fees.

Many of the others I saw were similar in cost or had costs associated with just having an HSA checking account. And a few had ramping fees: more invested, higher cost per year, etc...

My main goal at the moment is to use it as a replacement for an FSA.

It was also ranked as one of the better ones, investment wise: https://nyti.ms/2tVKpYP

There aren't too many great options out there for individuals.