I have a HSA through work that is with Key Bank. Last year I spent all of my HSA money on medical bills so I only have $250 in the account right now. I plan to max out my HSA for 2020 by the end of the year. I emailed HR and she told me that I can switch my HSA account to Fidelity at the end of the year. She had no idea if I could transfer money from the old account to the new account.
I called Key Bank and they were very helpful. If I want, I could invest with Key Bank but it sounded complex. The rep on the phone said I could buy certain mutual funds and that the money automatically sweeps from account to account. The minimum to invest with the Key Bank HSA is $3,500 and I have to buy $1,000 in mutual funds at a time. Key Bank also charges a fee to buy the mutual funds. I think she said .25%.
I could also do an HSA rollover from Key Bank to Fidelity. All of my other accounts are with Fidelity and I’m comfortable buying stocks using their website.
So my question is, is it a better idea to switch to a Fidelity HSA account or should I pay the transaction fees and stick with the Key Bank HSA that I already have set up?
Are there any additional fees to buy mutual funds in a Fidelity HSA or is that unique to Key Bank?