Hi all,
My work is swapping over to a new HSA from optum to WEX Jan 1. I wanted to move my balance at optum someplace that will pay me decently as both places suck. I will be moving about $4k over that I won't need over the next 6 months min.
Looking for ideas in good places. A dew credit unions do them that I have such as Affinity, DCU, redstone and unify fcu. Although I'm not stuck with them. I just want to make decent interest on the idle money.
Fidelity has an HSA that is highly regarded. The fees are really low and the interest rate should be good. You also have the option to invest the funds with them should you want to do so; an option you won't have with the credit union accounts.
@CreditCuriosity wrote:Never knew you could move money out of HSA to other ones. I still have some money in WEX from another work and money in forgot off hand from new employer. So you are saying you can get a debit card and move $ over to a HSA handled by a CU such as affinity or whatever you mentioned? Drawbacks etc?
@CreditCuriosity Yes, and usually a change in employers is the reason it's done. You can do an HSA Rollover once a year, simply have your old HSA administrator cut you a check and deposit it into the new one within 60 days (otherwise it becomes taxable income with a 20% penalty). Or you can ask your current HSA administrator to do an In-Kind Transfer where they receive the funds directly from your other administrator without any tax worries. Definitely do not use any debit card attached to the account; those can only be used for HSA allowable expenses. If the funds are tied up in something like mutual bonds, it may be a little more complex than if they are just sitting as a cash balance, though.
I would second the Fidelity HSA, but if you didnt already know, you can invest within your HSA account, it's triple tax advantaged.
Starting Score: 512
@Mdowning30 wrote:I would second the Fidelity HSA, but if you didnt already know, you can invest within your HSA account, it's triple tax advantaged.
That is why I don't use my HSA for medical expenses, though I don't have much in the way of expenses currently.
No tax on the money going in, no tax on the gains, no taxes when I'm older and need to use it for the inevitable increased medical expenses.
