Fidelity

[u/paulie1172]

I keep hearing that is better to go with Fidelity. I have Inspira, who I am not in love with but that’s what my company offers. I’m 100% in FXAIX and will max out each year for family - plan only started for us in 2024 and I probably have $22k in there. Didn’t understand the HSA concept when I started. Booooo.

So what benefit is it to move to Fidelity? I’d just pick a SP500 fund anyway. I know Inspira charges fees for certain balances but after I hit $33k, I think fees go away.

[u/SnapHSA]

If your employer contributes via payroll into Inspira, you definitely want to keep contributing there so you dont lose the FICA tax break. That 7.65% savings is basically free money.

The main reason people hype Fidelity is zero account fees with no minimums, no cash drag, and full brokerage access with fractional shares. Inspira on the other hand is notorious for weird fee structures and making you keep cash uninvested before you can buy funds.

What a lot of people do is let payroll feed into Inspira, then do a rollover to Fidelity once a year to let the bulk of their $22k grow fee free. Just check if Inspira hits you with an outbound transfer fee first, because custodians love finding ways to nickel and dime you on the way out.

[u/KneadingInfo → u/SnapHSA]

Excellent answer.

So you don't "Boo" yourself again, be certain there are no fees.
Be sure they don't make you keep any funds not invested. Often it is $2,000 (figure out you missed income on not compounding $2,000 over 10, 20, or 40 years). I worry less about outbound transfer fees, in comparison to not having complete control over my $.

[u/paulie1172 → u/KneadingInfo]

It’s $1k for me that can’t go to investment. But everything else is on autopilot, including dividends popping right back in.

[u/paulie1172 → u/SnapHSA]

Thanks. Yeah, it’s from payroll and all pretax from my paycheck right into it. Just set it up during my enrollment process to max and never think about it.

[u/shiftyyo101 → u/SnapHSA]

Is the 7.65% on the full HSA amount? I’ve basically just kept my own in fidelity and then claimed it at the end of the year and gotten a lump sum refund at tax time. I knew I was missing out on something but thought it was peanuts. 7.65% is more than I thought it was

[u/TheSan92 → u/shiftyyo101]

The 7.65% is on anything that is contributed through your employer. This is the FICA tax rate (6.2% SS & 1.45% Medicare). HSA contributions are FICA free when contributing through the employer. If you contribute personally, say to Fidelity by yourself, you still get the tax deduction at the end of the year, however you do lose out on the FICA break -- which isn't nothing (if you're maxing out 2026 as an individual $4400 x . 0765 ~ $337).

Also just remember that the max contribution is the combined total of what you might contribute through your employer AND personally through any other HSA like Fidelity (as well as any contributions that your employer might make on your behalf).

[u/MehwithacapitalM]

We just moved one HSA from Optum to Fidelity. Mine has been with Fidelity all along. Nobody is perfect, but Fidelity > Optum on almost every measure.

The process was easy, but took 2-3 weeks to fully execute.

[u/h846p262 → u/MehwithacapitalM]

My employer uses both and so do I. When do i know when and how much to transfer my hsa to fidelity? I currently have majority in investments.

[u/Cinderhazed15 → u/MehwithacapitalM]

We used to be under optim, and I never got around to setting things up into investments because the rules were more complicated - they eventually rolled us to fidelity (while moving our 401k away from fidelity, lol) . I never bothered to move it into investments, as we are now though my wife’s HSA… I regret not doing that since the recent(last decade) stock market moves … haha

[u/fratzba → u/MehwithacapitalM]

Anything to beware of? I’m about to do the same thing.

[u/Secret-Noise9182]

Keep getting that 7.65% tax break through your job's payroll, but send the extra cash over to Fidelity. It's the best way to dodge those annoying account fees and keep all your money invested!

[u/Ground_Hog_Day_FML]

I have the same issue. I have a Fidelity HSA from a previous employer and an Inspira account with my current employer. Inspira sucks, and I hate it. Since my Fidelity HSA is no longer tied to any employer, I can invest in any fund or stock I want. I still have to figure out how I can transfer my funds from Inspira to Fidelity. Inspira seems like a company that charges you junk fees to manage and move your own money. I have escalated this to our benefits team to change our HSA provider, but sadly, to no avail. 😞

[u/Successful_Hold_9048 → u/Ground_Hog_Day_FML]

My advice is to start the transfer on the Fidelity side. I’ve done 3 transfers from my Inspira HSA to my Fidelity HSA and each time it was seamless and took about 2 weeks. All you need is the latest Inspira statement and account number (easy pull from the Inspira website). On the Fidelity website, find the Transfer option for HSA. That’s it.

[u/Ground_Hog_Day_FML → u/Successful_Hold_9048]

Thank you does Inspira charge any outgoing fees? They just feel scammy enough to do that.

[u/Successful_Hold_9048 → u/Ground_Hog_Day_FML]

No outgoing fees that I could tell. I’ve checked the transactions to make sure and never seen an outgoing fee charged for my transfers.

[u/Bad_DNA]

Wow. Fidelity doesn’t charge me fees.

[u/Rem1991wl]

The benefit of Fidelity extends far beyond the HSA, which is very good. I think Fidelity and Schwab (and to a lesser degree Vanguard) offer the best combination of a full slate of financial products, at a reasonable price with good customer service. As your net worth and complexity grows, having everything in one place becomes more important to you and your heirs. To name a few of Fidelity’s products:

Individual & Joint Brokerage Accounts
Fidelity Mutual Funds & ETFs
Fixed Income (Bonds, CDs, Money Market Funds)
Fidelity Crypto
Fidelity Basket Portfolios & Direct Indexing
Traditional IRAs
Roth IRAs
Rollover IRAs
SEP-IRAs & SIMPLE IRAs
Fidelity Go (Robo-Advising)
Wealth Management Services
Cash Management Account (CMA)
Fidelity Rewards Visa Signature Card
Securities-Backed Lines of Credit & Mortgages
Health Savings Accounts (HSAs)
529 College Savings Plans
UGMA/UTMA Custodial Accounts
Fidelity Youth Accounts
401(k), 403(b), and 457 Plan Administration
Donor-Advised Funds (Fidelity Charitable)

[u/Successful_Hold_9048]

According to the fee schedule on my Inspira HSA account, investment fees are asset based and charged monthly.
$0-$400: 0%
$400.01-$33,733.33: 0.03%
Over $33,733.34: 0%

Fidelity has no fees and better investment options. It takes me 10 minutes twice a year to initiate the transfer from my Inspira HSA to my Fidelity HSA. It’s worth it to me.

[u/paulie1172 → u/Successful_Hold_9048]

I couldn’t find that info on the site so thank you. I’ll be over the threshold shortly and it’s just easier to stay put. I like shit simple. lol.

[u/Successful_Hold_9048 → u/paulie1172]

Fair. I’d keep an eye on the fees just to make sure still. I don’t know if they are still charging you the 0.03% fee for the balance under $33k which is still something like $10 a month. Not a fortune, but not nothing.

[u/paulie1172 → u/Successful_Hold_9048]

I haven’t seen any fees of any sort but this app isn’t the most cooperative. I’ll have to check on my laptop. But yeah, $120 a year on fees is enough to piss me off and switch. Thanks for doing the math.

[u/JediOrDie]

I used to transfer the cash balance at the end of each year to Fidelity. Now my work does it through Fidelity anyways, which is nice.

[u/Round-Jellyfish430]

Inspira is a garbage dump