tennisguru

You cannot just roll the funds from Optum investments into Fidelity. You have to sell your Optum positions and convert it to cash before moving that cash over. This is really only an issue the first time you do a transfer if you've built up some investments in Optum. Since Optum forces you to keep the first $2000 in cash no matter what it's never an issue going forward since by the time I get that much money in Optum I'm ready to roll it to Fidelity anyways.

If I remember correctly, your money at Optum is in one of two "sides", either the cash side or the investment side. Transfers (or reimbursements for that matter) can only be done from the cash side of your account. Even if you have money in a money market account on the investment side it cannot be transferred out of Optum. It first needs to be sent over to the cash side before being eligible.

Trip7

This x1000

I LOVE the HSA because it gives you the opportunity to use what you would as paid as premium as float. You can then invest that float and if you allocate efficiently make very decent profits off cheap capital like all the insurance companies do. Transferring your HSA assets from Optum to Fidelity gives you significantly more flexibility when it comes to capital allocation. How did Warren Buffett become so wealthy? He leveraged cheap capital from GEICO’s premium float into a business empire.

From Investopedia.com
Most insurance companies generate revenue in two ways: Charging premiums in exchange for insurance coverage, then reinvesting those premiums into other interest-generating assets.

GogglesPisano

Optum is owned by UHC. That should put things in perspective.

PilotWombat

If anyone is looking for this in the future, I just made a rollover to Fidelity, and WAS charged the $20 fee. I made the mistake of rolling over the entire amount, which closed the account, so I don't know if the fee is waived if you only do a partial rollover.

Xjtpilot518

who charged the fee? I’ve opened up the fidelity hsa within the past 6 months and have been making regular transfers from Optum without any fees. I don’t convert the whole amount in order to keep the account open. I also do cash position to cash position. Maybe therein lies a difference?

easternguy

Is anyone doing shoebox HSA? In other words keep receipts and let the money grow and reimburse in or close to retirement? Too much hassle?

Myfingershurt

Didn’t even know that was an option. Learn something new every day.

easternguy

Debating whether it's worth the hassle. With a few kids, it's pretty nice to log in and just click "pay" which sends dr's electronic payments directly from HSA. Although I'm not sure with the change in provider/website if it will still be as easy (probably will be). Although I think it can be set up to electronically send from a checking account or credit card.

Trip7

I am. I pay all medical expenses out of pocket and let the Fidelity HSA grow. Receipts all added to a Google Drive Folder

marcal

I pay every medical bill out of pocket.

I then take a pic of receipt and store it a folder on my desktop. I also have an excel spreadsheet that I log it as well but that’s just for me. The receipt is all you need.