Moving a Heath Saving Account (HSA) from Health Equity to Fidelity

Summary

In this video, Jamie from The Savings Secret explains how transferring your Health Savings Account (HSA) to Fidelity can help you avoid fees and gain access to broader investment options. With Fidelity’s no minimum balance and no fees, it’s an ideal solution for those looking to maximize their HSA’s potential. Jamie walks viewers through the simple steps of transferring funds from a current provider like Health Equity, offering a clear and actionable guide to make the switch. This video is a must-watch for anyone wanting to get more intentional with their money and invest in their future.

Takeaways

• 😀 Transferring from an existing Health Savings Account (HSA) to a Fidelity HSA can help you avoid high fees and access better investment options.
• 😀 Fidelity offers a triple tax advantage: contribute tax-free, grow your money tax-free, and withdraw tax-free for qualified medical expenses.
• 😀 Fidelity HSAs have no minimum balance requirements or fees, making them a cost-effective option for managing healthcare savings.
• 😀 You can transfer your HSA funds from another provider, like Health Equity, without closing your original account.
• 😀 To transfer funds from Health Equity to Fidelity, ensure your funds are in cash form, as you can only transfer cash balances, not investments.
• 😀 Fidelity offers a fast and simple process to open an HSA, especially if you already have a Fidelity account—taking just about 30 seconds.
• 😀 Health Equity requires a minimum of $2,000 in cash before you can start investing, but Fidelity does not have such restrictions.
• 😀 The transfer process from Health Equity to Fidelity is straightforward, requiring only basic account info and a few days for the funds to move.
• 😀 Once your funds are in your Fidelity HSA, you can invest them like you would with any other Fidelity account, with a wide range of options.
• 😀 Jamie is not sponsored by Fidelity; the video is designed to provide helpful, unbiased advice for managing your HSA more effectively.

Q & A

What is the main advantage of transferring an HSA to Fidelity?

The main advantage of transferring an HSA to Fidelity is that they offer no account minimums, no fees, and a wide range of investment options, making it easier and more cost-effective to manage your funds.

What are the key tax benefits of an HSA?

HSAs offer a triple tax benefit: contributions are tax-free, the money grows tax-free, and withdrawals are tax-free as long as they are used for qualified medical expenses.

Do you have to worry about losing your funds when transferring an HSA?

No, the transfer process allows you to keep your original HSA open, so future contributions from your employer can still be made to the original account. You just move a portion of the funds to Fidelity.

What steps do you need to take to transfer your HSA to Fidelity?

First, open a Fidelity HSA. Then, log into your current HSA provider (like Health Equity), request a partial transfer, and make sure the funds are in cash form. Afterward, you complete the process on Fidelity’s website, providing basic details and account information.

Why might someone want to transfer their HSA from Health Equity to Fidelity?

Someone might want to transfer their HSA from Health Equity to Fidelity due to high fees, limited investment options, or the need for more flexibility in managing their health savings account.

Is there a minimum balance required to invest in Fidelity’s HSA?

No, Fidelity does not require a minimum balance to start investing, making it easier to begin investing with any amount.

How long does it take for funds to appear in your Fidelity HSA after initiating the transfer?

It typically takes 5 to 7 business days for the funds to transfer into your Fidelity HSA after the request is made.

Do you need to sell your investments before transferring your HSA to Fidelity?

Yes, if your current HSA is invested in other assets, you need to sell those investments and convert them into cash before initiating the transfer. However, there are no fees or tax implications for selling your investments in this tax-advantaged account.

Can you transfer all the funds from your existing HSA to Fidelity?

No, you can only transfer a partial amount of your funds to Fidelity. Your original HSA account remains open, and future contributions can still be made to it.

Do you need a special Fidelity account to transfer funds into an HSA?

Yes, you need to open a Fidelity HSA, which is separate from other investment accounts. Once you’ve opened the HSA, you can transfer your funds into it.