This Q&A style post should get you going on everything you need to know to rollover HSA money to the new HSA admin of your choice.
Not sure about HSA and its investment benefits?
Read this R&U post to get yourself acquainted.
Why should you perform HSA rollovers and ditch your current
A lot of times, we are forced to use a certain HSA admin through our employer. And that admin could be charging high administrative fees and also having restrictive investment options, or maybe you are just looking to consolidate all your investments and want to use a designated admin. And in case you are wondering – YES, you can have multiple HSA accounts.
Which is the best HSA admin, really?
Fidelity is the undisputed king of HSAs – zero fees, access to every stock and ETF under the sun, highly reputed brokerage with great customer experience. No wonder they have been rated #1 HSA admin for many years in a row by Morningstar.
How to actually perform a rollover without a transfer fee?
Follow these simple steps –
#1 Choose the rollover amount.
⚠️ Remember to not transfer all the money from your current HSA account, otherwise your current HSA account would get closed. Most HSA admins want you keep some nominal money (25$ in case of Health Equity).
#2 Capture the account number of the HSA account you are transferring from. You can find that in your HSA account statements or preferably, call your HSA provider and confirm your account number, especially if you are doing it for the first time.
#3 Initiate the rollover/transfer – you could do this via from source or destination HSA admin but the goal here is to ensure transfer does not incur any fee and choosing the admin makes all the difference.
👉 For those moving HSA funds to Fidelity, the trick is to trigger the transfer from Fidelity. You can use this link to kick it off. Punch in the
#4 ⚠️ Most important – After a few days of the rollover request, you might see your current HSA account being frozen, due to the pending rollover. In my case, the portal wrongfully displayed messages saying that “current account will be closed”. But since I had kept more than the minimum account with the current HSA admin, the weird message went away once the transfer got culminated.
📌 This entire process takes around 3 weeks, minimum. Current HSA admin literally cuts a physical check which is later deposited to your destination admin behind the scenes so don’t be alarmed if you see a period of no activity after the funds are withdrawn from your source account.
🧘♂️ For your first transfer, please make sure you call both your current & new HSA admin and confirm the process fully, to avoid any surprises.
🧘♂️ Unruffled Life Pro Tip
Read the Psychology of Money bestseller from award-winning author Morgan Housel and get life changing perspectives.
As always, stay rich and unruffled!
Disclaimer: The intent behind this post & any other material on this portal is to help our readers cultivate total wealth of health, money, time & social life (in that order) – essentially amplifying the joy and contentment in life. None of the content substitutes professional financial, tax, legal, health, home care or any other kind of advice. Please perform your own due diligence before acting on any of the ideas & material shared here.
Leave a Reply