[Nicki]

I didn’t think about the payroll tax savings. HSA strategy- Last year I transferred my entire HSA balance from my work account with Health Equity over to a Fidelity HSA.

I’m trying to decide my strategy now that my paycheck withdrawals have started over for this year. My company front loads my match dollar for dollar with the first few paychecks.

I have to have $1k in my HE account before I can invest. I planned to wait until I’ve maxed out the annual contribution to move it over to Fidelity.

Now I’m wondering if it is a better strategy to stop contributing from my paycheck once I hit the match and make my own deposits to my Fidelity account.

It all comes out in the wash at tax time.

I’m thinking I might as well transfer when I hit the match and invest at Fidelity instead of investing over a few months at HE, then selling, then transferring.

How are others handling this that routinely move HSA money from a work account to another account?

[Rick]

Xfer once a year. Keep making payroll deductions for the payroll tax savings (7.65% assuming you aren’t over SS wages any time).

[Daniel]

Did you have to leave the employer to transfer from healthequity to fidelity?

[Lynn]

I just opened up a Fidelity HSA and stopped my HSA from my paycheck. I was going to contribute directly. My employer keeps changing providers and it’s getting annoying.

If I understand what the group is saying, I should keep my paycheck deductions, and ‘scoop’ them up yearly and dump in my Fidelity account.

Plus, since we’re both over age 55, I can do $1k over limit for catch up and my husband can as well … into a separate account

[Karen]

Excuse my ignorance, but what’s the benefit to using fidelity? Increased investment options?

My HSA is parked with another company but I don’t currently contribute (PPO was cheaper overall)

[Christopher]

Paycheck deductions are the way to go typically, since that’s the only way to avoid fica taxes. That tax does not come out in the wash if you pay from other sources.

That’s a 7.65% tax savings.
Is there a fee to transfer it over to Fidelity?

If so, you’d want to balance that with the tax savings.

[Jule]

The tax savings won’t be the same as if you do it through payroll, which is a big benefit for the HSA.

[Rich]

With a work-sponsored HSA, you get to enjoy triple tax savings.

Directly funding your Fidelity HSA is double tax savings.

[Joel]

I contributed through my employer, invested in a couple of index funds through their HSA provider then did a 60-day rollover after I retired.

I didn’t feel like the extra work to do multiple rollovers added enough value to justify the time it would take.

[Nicole]

Are you required to use HE? If not, ask your employer to use fidelity.

We just rolled our balance over to Fidelity also

[Author]

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