Can I open my own HSA?

Archived From: Finance
  • Page :
  • 1
  • Text Only
Voting History
rated:
My wife's employer set up an HSA for her and regularly deposits funds to the account that they designated. We don't like the bank and there's no interest or investment options with them. They don't even seem to keep track of the receipts for us - we just transfer the money out as we see fit and its up to us to keep all the receipts in case we're audited. Do you all think it's possible to open an account at another bank and just transfer the funds there as they appear?

Member Summary
  • Also categorized in:


Most HSAs have really high fees to move money around like this.

Consider that by using the HSA your employer is enrolled with, you get to save FICA tax on any contributions, that's a 7% return on investment relative to you not going that route and just putting contributions into your own HSA.

Of course, it sounds like you want to do that and then immediately transfer the money out each month. There's probably a $5 fee or something silly for every transfer out in this regard. You're probably screwed.

Of course, you could try calling the HSA Bank itself and asking them what fees are involved, but it would be more fun for all of us to guess.

Your spouse can open another HSA which will accept trustee-to-trustee transfers, and instruct the second HSA to transfer money from the first HSA.

The HSA is a convenient way to manage the tax treatment that high deductible insurance plans provide. If you don't want to use the HSA bank your employer uses, then you're completely free to use your own. Just have them stop making contributions to their preferred HSA bank and instead make contributions to your account at your new HSA bank. Take your pick.

If, by chance, your payroll people aren't able to figure out how to do this, then just have them direct deposit the amount you want contributed into your new HSA account, treated as a normal checking account. You'll need to take care of the tax treatments when you file. You can do the same thing with employer contributions if you need to.

You're responsible for tracking expenses and contributions to/from an HSA anyway, so keeping receipts isn't really that big of a deal. The IRS is going to ask YOU for the receipts, not the bank, when you get audited.

ubermichaelthomas said:   Most HSAs have really high fees to move money around like this.

Consider that by using the HSA your employer is enrolled with, you get to save FICA tax on any contributions, that's a 7% return on investment relative to you not going that route and just putting contributions into your own HSA.Text

Of course, it sounds like you want to do that and then immediately transfer the money out each month. There's probably a $5 fee or something silly for every transfer out in this regard. You're probably screwed.

Of course, you could try calling the HSA Bank itself and asking them what fees are involved, but it would be more fun for all of us to guess.


If you make more than $110,000 is the benefit not reduced or perhaps totally eliminated (SS only) if your salary is high enough?



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

TRUSTe online privacy certification

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2014