My company HSA is through HSA Bank. HSA Bank gave me two options to use in order to invest my HSA contributions (Schwab or Devenir). I have been using Schwab. HSA Bank is now doing away with both of those options and forcing everyone to use their HSA Invest platform.

The process as it was explained to me is that I have to sell my Schwab Target Date Fund and transfer those monies over to the HSA bank in cash and then I'm able to invest in one of their options via their platform.

My question is, is this a taxable event, and if so, is there a way to avoid making it a taxable event? I just started investing my HSA contributions this year so that would probably be short term capital gain hit I'm guessing.

I was told starting Sept 24, 2024 I can no longer invest funds into the Schwab account, only sell. Sounds like early 2025 they will automatically liquidate the Schwab account and transfer the cash over to the HSA bank account. I spent way too much time on the phone with them yesterday and as you can see I didn't get very far with their reps.

permabull said:

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This won't be a taxable event.

I would see if your plan allows you to roll your HSA out to another provider, I believe most do. If you are happy with using Schwab, I would look into opening a separate HSA with them and look into rolling the money from HSA Bank to them. All future payroll deduction/contributions will still go to HSA Bank so you will have to periodically roll that money into your Schwab account if you go this route (and if your plan allows it).

My last job used an HSA servicer that didn't have very investment options and had high fees on the funds they did have so I would just roll my money out every few month to a discount broker.

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Very helpful, thank you!

Same here. I poked around the HSA Bank site just long enough to learn my top holding isn't available on their platform which pisses me off. I will hold the schwab balance for now until I figure out a new direction.

I'm lucky my employer contributes a nice chunk to HSA each year, it's free money. But then the Schwab buyout last year, followed by HSA bringing it all in house this year, it's just a hassle. A first world hassle.

JSKolache said:

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Same here. I poked around the HSA Bank site just long enough to learn my top holding isn't available on their platform which pisses me off. I will hold the schwab balance for now until I figure out a new direction.

I'm lucky my employer contributes a nice chunk to HSA each year, it's free money. But then the Schwab buyout last year, followed by HSA bringing it all in house this year, it's just a hassle. A first world hassle.

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Keep me posted. My employer gives a nice match as well so I'm with you, first world hassle, just more annoying than anything.

I suspect that you have the option to not do a damn thing and just leave your HSA at Schwab if you want.
New contributions and any company match will flow to the new provider and you'll have a new account to keep track of.

All I can say is HSA Bank sucks!

I would Highly recommend transferring your HSA directly to Fidelity, that's what I did a couple years ago. Night and day difference.

Then once a year transfer your funds from the last 12 months directly over to your Fidelity account.

I am in the same situation as many here. My hsa investments are at Schwab and mainly individual stocks.

As best I can tell, I will not be able to own individual stocks at the new HSA Invest (although not 100% sure). Either way under their "choice" program, they are going to charge me to hold my investments with them. What a crock of ….

I am going to look to move my Schwab positions elsewhere or maybe keep time at Schwab, however after sep 24, I can only sell at Schwab and can't buy any stocks. The cash will flow automatically over to the new HSA invest program

Also, it appears that all new contributions to HSA bank can only be routed over hSA invest.

Does anyone have a different or better hsa bank equivalent?

Any discount broker can open an HSA for you but you will still have to go through the extra step of doing a trustee to trustee transfer from whichever one your employer uses to move your funds over.

Going through this now…HSA Bank said any cash in Schwab will go back to them, but the invested monies will stay at Schwab. Question I didnt ask is if I change my investments, does that trigger $ back to HSA Bank?

Let me know in this thread or DM and I can forward emails from both 1) Schwab (details moving HSA vendors, see 4 listed below) and 2) HSA Bank with the funds available via HSA Invest (a lot of ETF's from Fidelity, Schwab, vanguard and others…but not comprehensive either and not sure if can purchase individual stocks).

Oh and lady at HSA bank said they will NOT charge a fee until 1/1/26 (vs site says 2025 as they just decided). Definitely the Choice plan and maybe the next level with an advisor. Verbal, but she was competent and confident, so trust but verify if makes a difference.

Schwab has established connections with several HSA providers. The following providers offer HSA Programs for Individuals, with access to Schwab's HSBA:
HealthEquity
Lively
Optum Financial
WEX Health, Inc. (WEX)

I am currently self employed and purchase my own health insurance (high deductible plan)

My previous employer used HSA bank and therefore I continued to use them and Schwab for my hsa contributions

Based on the HSA bank upcoming changes, I opened an hsa at fidelity and requested the transfer of funds from both Schwab and hsa bank.

The transfer from Schwab to fidelity was completed in 2 days. I didn't have to sell any stocks at Schwab to make the transfer. My hsa investments came over to fidelity in whole as invested.

I have a little over $1000 cash at hsa bank which should transfer over in a few weeks according to the updates on fidelity.

kyle field 94 said:

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I am currently self employed and purchase my own health insurance (high deductible plan)

My previous employer used HSA bank and therefore I continued to use them and Schwab for my hsa contributions

Based on the HSA bank upcoming changes, I opened an hsa at fidelity and requested the transfer of funds from both Schwab and hsa bank.

The transfer from Schwab to fidelity was completed in 2 days. I didn't have to sell any stocks at Schwab to make the transfer. My hsa investments came over to fidelity in whole as invested.

I have a little over $1000 cash at hsa bank which should transfer over in a few weeks according to the updates on fidelity.

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Did you need a trustee to assist with this? My understanding is you can roll everything over once a year, but wasn't sure if you were to roll over from two different places (Schwab & HSA Bank) if that counted as two rollovers, therefore requiring a trustee.

Fidelity handled all the paperwork after I submitted the request online at Fidelity

Moving from one HSA to another HSA is just a transfer, not a rollover. Besides the fact these usually take a few days or weeks to complete, there is no hard limit to the number you can do per year. I used to do one every 2-3 months and I know people who initiate one every paycheck.

Edit to clarify... An HSA rollover is only when they cut you a check and you deposit it into a new HSA. When you use Fidelity's form to transfer the money, that is a trustee to trustee transfer. So if you never had a check mailed to you with your name on it, you didn't do a rollover.

So have any of you guys switched your HSA to one of the 4 companies that use Schwab? Always waiting to the last minute and I would like to keep it in Schwab, bc I use ToS with that account and a couple others I have with them.

Following this. I just saw that some money was dumped back into my HSA Bank account from Charles Schwab. I guess I'll see about setting up an HSA account at Fidelity.