The downside of an HSA

[MooseBucks]

We were early adopters of the HSA/HDHP option. We no longer have a HDHP but still have funds in our HSA.

The downside I've experienced is that our HSA has changed hands 3 times. After the last change, we decided to make a 4th change ourselves because the institution that took over our HSA charges a monthly fee. I'm right now finishing up the paperwork to get our HSA rolled over.

It's a very minor inconvenience in my mind but does involve a bit of extra research (to choose the new HSA provider), paperwork, and record keeping.

It's been worth it for us, but I know there are some people out there that really dislike dealing with change, research, and paperwork.

This is my fear if I ever leave my company and they start charging me to keep my HSA funds there. Where did you end up moving it to and what sort of fees do they have?

Henry

[scfr]

This is my fear if I ever leave my company and they start charging me to keep my HSA funds there. Where did you end up moving it to and what sort of fees do they have?

Henry

I chose NASA FCU. They do not charge a monthly or annual fee. They do charge a $35 account closing fee on HSAs, but hopefully that isn't something we'll have to ever pay.

They even pay a tiny bit of interest. I'm usually a notorious rate chaser when it comes to bank accounts, but for our HSA what I really care about is fee avoidance.

[Nutria]

Another sort of downside to the HSA is, imho, the form which needs to be filed with taxes. Added work for our accountant. https://www.irs.gov/pub/irs-pdf/f8889.pdf

In 2015 when I had an HSA, there was a website where I could enter all that stuff if we used our credit card or wrote a check to pay for medical service (an old doctor doesn't take plastic) instead of the HSA debit card.

It'll be a slight problem if we're ever audited, but made taxes much simpler.

(The the company changed plans, and no more HSA. Then they changed plans again. Still no HSA, but plan changes are a hassle...)

[Outdoorsygal]

In 2015 when I had an HSA, there was a website where I could enter all that stuff if we used our credit card or wrote a check to pay for medical service (an old doctor doesn't take plastic) instead of the HSA debit card.

Neat!! It wouldn't surprise me if we had that option but were never notified about it. When we first got HSA's, our HR person was so overwhelmed.

(The the company changed plans, and no more HSA. Then they changed plans again. Still no HSA, but plan changes are a hassle...)

Our company sort of changed plans also. They are basically funding a 401k instead of an HSA but not both. How much they'll be funding for 2017 is still unknown.