Through my full time job, I have an HSA that my employer contributes $10 per pay period. It is in a bank account that I have to renew every January called Key Bank. I want to invest the money but I’m worried that if I link my HSA account to Fidelity then use it to fund an account that I will be taxed. How do I properly invest my HSA money?
Hey @inition!
I believe you’re allowed to simply open up a Fidelity HSA, and transfer money over from your existing HSA. Fidelity (and your existing HSA) will provide tax documents at the end of the year, that you can use when preparing your taxes so that you know everything is on the up and up.
Fidelity has a section about this on the HSA portion of their website:
If you have an existing HSA, you are eligible to open a new one with a different financial institution and transfer your account at any time.
Fidelity’s online guide to transferring assets can help you through the process and you can sign up to receive alerts during important steps.1,2 Because the transfer process can vary between institutions, check with your current provider for specific transfer instructions.
I might also check in with HR at your company to see if they explicitly don’t allow this, or could switch the contributions to go directly to Fidelity, or have some other insight. You might be creating your paperwork for yourself by having two, but it may well be worth it, especially if you’ll be at this company for a long time and want to get this money invested and growing.