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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75379  
Subject: What's the best HSA Adminisrator? Date: 2/5/2014 8:53 PM
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I've decided to open an HSA account to further lower my MAGI for Obamacare. (I have an HSA-qualified health plan - $5,000 deductible.)

I'm not worried about making withdrawals from the account. I'll just invest the money ($4,300 for 2014) in a mutual fund and let it grow.

Here's the best one I've found. (Fees of $45/year plus 32 basis points of the mutual fund balance = $58) Anyone using something better?

http://www.hsaadministrators.info/

Thanks,

intercst
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Author: amgentech Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74210 of 75379
Subject: Re: What's the best HSA Adminisrator? Date: 2/6/2014 12:19 AM
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I ended up going with http://www.HSABank.com. The total yearly fees are a little higher ($66) than HSAadministrators but I calculated that it will be lower by the second year due to the 32 basis points HSAadministrators adds while HSAbank is a fixed charge. HSAbank will wave the 2.50 per month bank account fee with a $4900 minimum balance. The investment account fee is $3.00 per month.

The investment option with HSAbank is a TDAmeritrade account that has 150 mutual funds that can be traded commission free. Most of the Vanguard funds available through HSAadministrators are available from TDameritrade. HSABank also has a Devenir mutual fund option although I did not find the fund selections very attractive.

I have only been with then a few months but so far have found the website good and online transfers handled well.

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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74215 of 75379
Subject: Re: What's the best HSA Adminisrator? Date: 2/6/2014 1:28 AM
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amgentech writes,

I ended up going with http://www.HSABank.com.

Thanks. I'll take a look at it.

intercst

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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74217 of 75379
Subject: Re: What's the best HSA Adminisrator? Date: 2/6/2014 5:03 AM
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I'm not much help here. Unfortunately, life has dictated that I spend my HSA contribution every year (and then some). I have my HSA with my bank, as they waive all fees with a $2000 minimum balance (or something around that). With my married contribution of $6k+ each year, that gets me a bit over half way through the year before the balance drops low enough to start triggering monthly fees. Last year I paid something like $25 in fees for the HSA.

--Peter

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Author: Hawkwin Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74220 of 75379
Subject: Re: What's the best HSA Adminisrator? Date: 2/6/2014 8:57 AM
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When I left a previous employer, my HSA was too small to be able to absord the fees found via most HSAs that offer investment alternatives so I took mine to the NASA federal credit union. $5 in savings account with them keeps it free.

I don't earn much if any interest but I also don't lose it all to fees.

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Author: Pushkinator Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74221 of 75379
Subject: Re: What's the best HSA Adminisrator? Date: 2/6/2014 9:09 AM
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I have used Wells Fargo for a couple of years. There is a monthly fee, but it is always reversed based upon having proper minimum balance. The investments are somewhat limited, but better than some other alternatives.

My only dislike is lack of download of transactions to Quicken.

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Author: Hawkwin Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74223 of 75379
Subject: Re: What's the best HSA Adminisrator? Date: 2/6/2014 10:09 AM
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I have used Wells Fargo for a couple of years.

What is the proper min balance?

When I was doing my research, I found that many HSAs were restricted to certain states. I had all of six available to me and Wells was not one at that time.

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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74229 of 75379
Subject: Re: What's the best HSA Adminisrator? Date: 2/6/2014 5:57 PM
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Thanks to everyone who replied to this thread.

It looks like the best choice for me is to go with HSA Bank.

http://www.hsabank.com/hsabank/education/hsa-overview

I'll wait until Dec 2014 to make my $4,300 contribution so I'll only pay one month's fee for 2014 ($2.50 account fee.)

In Jan 2015 I'll make another $4,300 contribution and put the $8,600 balance in a no-commission ETF with TD Ameritrade. Thereafter I'll incur a $2.50/month account fee and $3.00/month investment fee for a total of $66/year.

intercst

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Author: PSUEngineer Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74230 of 75379
Subject: Re: What's the best HSA Adminisrator? Date: 2/6/2014 7:42 PM
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I'll wait until Dec 2014 to make my $4,300 contribution so I'll only pay one month's fee for 2014 ($2.50 account fee.)

In Jan 2015 I'll make another $4,300 contribution and put the $8,600 balance in a no-commission ETF with TD Ameritrade. Thereafter I'll incur a $2.50/month account fee and $3.00/month investment fee for a total of $66/year.


Is waiting to December the best choice? You would only need to earn about 1.5% on your initial $4300 contribution to exceed the fees for the year.

PSU

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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74231 of 75379
Subject: Re: What's the best HSA Adminisrator? Date: 2/6/2014 7:45 PM
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I'll wait until Dec 2014 to make my $4,300 contribution so I'll only pay one month's fee for 2014 ($2.50 account fee.)

In Jan 2015 I'll make another $4,300 contribution and put the $8,600 balance in a no-commission ETF with TD Ameritrade. Thereafter I'll incur a $2.50/month account fee and $3.00/month investment fee for a total of $66/year.



I'm not sure why you would make your contribution for 2014 in Dec, 2014 and then make your contribution for 2015 in Jan, 2015. You can wait until April 15 of the following year to make your contribution (like IRA contributions), so you could make both the 2014 and the 2015 contributions any time between Jan 1, 2015 and April 15, 2015. Here's the verbiage about 2013 from IRS Pub 969:

When To Contribute
You can make contributions to your HSA for 2013 until April 15, 2014. If you fail to be an eligible individual during 2013, you can still make contributions, up until April 15, 2014, for the months you were an eligible individual.


Since you are talking about a $4300 contribution for 2014, I am assuming you will be 55 or older by the end of 2014, so you are making a catch-up contribution of $1000 in addition to a self-only contribution of $3300?

AJ

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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74232 of 75379
Subject: Re: What's the best HSA Adminisrator? Date: 2/6/2014 8:12 PM
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PSUEngineer asks,

Is waiting to December the best choice? You would only need to earn about 1.5% on your initial $4300 contribution to exceed the fees for the year.

The money is already invested. I'll just be moving it from my taxable account to the HSA where I'll buy the same fund, but incur additional fees. By waiting until Dec 2014, the fee for 2014 drops from $66 to $2.50.

intercst

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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74233 of 75379
Subject: Re: What's the best HSA Adminisrator? Date: 2/6/2014 8:19 PM
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aj485 writes,

I'm not sure why you would make your contribution for 2014 in Dec, 2014 and then make your contribution for 2015 in Jan, 2015. You can wait until April 15 of the following year to make your contribution (like IRA contributions), so you could make both the 2014 and the 2015 contributions any time between Jan 1, 2015 and April 15, 2015. Here's the verbiage about 2013 from IRS Pub 969:

</snip>


Excellent idea!

I'll wait until April 2015 to open the account and make contributions for both 2014 and 2015. That will drop the fee for 2014 to $0 and 2015 to $49.50.

Thanks,

intercst

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Author: jerry5453 Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74235 of 75379
Subject: Re: What's the best HSA Adminisrator? Date: 2/7/2014 6:14 PM
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I've been looking into HSA's also, and had sort of come to the same
conclusion to go with HSA Bank ......

However!
Just stumbled on a possible alternative that looks promising,
low fees and investment options.
I haven't done anything but peruse the site and two threads so far,
but I'm going to look further.

http://www.elfcu.org/solutions/deposits/health-savings-accou...

http://thefinancebuff.com/best-hsa-provider-for-investing-hs...

http://www.bogleheads.org/forum/viewtopic.php?f=1&t=1311...

j

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Author: amgentech Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74236 of 75379
Subject: Re: What's the best HSA Adminisrator? Date: 2/9/2014 12:16 PM
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elfcu looks pretty good.

Note that the threads discussing HSAbank have some wrong info.

You are not required to maintain a minimum balance in the cash account to start investing. The 3.00 investment account fee is waived if you do. The current min balance for fee waiver is $4925

http://www.hsabank.com/hsabank/accountholders/investing-hsa-...

No minimum HSA balance is required to start investing
(Minimum trade requirements may apply)
•Start investing when and how you want to; there are no
proprietary or default investments based on your HSA balance
•$3 monthly investment fee waived for HSA accounts with
$4,925* minimum daily balance


I also noted that ELFCU does require 2500 in the cash account before you can start investing.

http://www.elfcu.org/clientuploads/2013ElfcuHSAWelcomeKit.pd...

In order to enroll in the investment program, you
must have an account balance of at least $2,500 in
your HSA at the time of enrollment.


Overall it looks like it might be a little cheaper to go with elfcu. It depends on if you can earn more that 3.00 a month on the additional $2500 invested.

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Author: amgentech Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74237 of 75379
Subject: Re: What's the best HSA Adminisrator? Date: 2/9/2014 1:57 PM
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I looked a little closer at ELFCU and found it was originally the Eli Lilly & Company credit union. Current or past members/employees of one of the organizations listed here may join.

http://www.elfcu.org/solutions/membership/how-to-join-elfcu/...

As an alternative you can establish eligibility by joining https://www.trudirection.org/index.php for a one time fee of 5.00


Thanks for posting the links. Even with a $25 transfer fee and a $2500 min.cash balance it might be worthwhile to transfer from HSABank.

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