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I have a HSA which I opened with a previous employer who offered a HDHP.

My new employer does not have a HDHP plan.

Because I'm no longer an employee with my previous employer, my HSA custodian (ConnectYourCare) charges a $2.50 monthly administrative fee.

  • Can I move my HSA to a new custodian that doesn't charge an administrative fee?
  • If not, can I pay the administrative fee in cash (ie. with post-tax money) instead of eating into the HSA balance?
  • Is there anything else I can do to avoid losing my HSA balance to fees?
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  • Why not spend it? You can use it for just about any medically qualifying expense.
    – Michael
    Dec 28, 2017 at 1:44
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    Absolutely find a different custodian. You should at the very least be earning (minimal) interest on your balance, not paying someone to hold on to the money.
    – chepner
    Dec 28, 2017 at 2:52
  • I fortunately have no medical expenses to spend it on and I don't really want to buy thousands of dollars worth of sunscreen :/
    – digitalPhonix
    Dec 28, 2017 at 8:41
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    ‘Spend it’ might not be a useful recommendation. If you make good use of your HSA, after a decade you can have 100 000 or more accumulated, in tax free money.
    – Aganju
    Dec 28, 2017 at 12:21
  • How much is the balance?
    – mhoran_psprep
    Dec 28, 2017 at 17:36

1 Answer 1

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In order:

  • Yes, you can rollover an HSA, even if you don't have an HDHP:

You can roll over amounts from Archer MSAs and other HSAs into an HSA. You don’t have to be an eligible individual to make a rollover contribution from your existing HSA to a new HSA.

We may charge you (or your employer) separately for any fees or expenses, or we may deduct the amount of the fees or expenses from the assets in the Bank Portion of your Account, at our discretion.

  • As Michael points out, you can just spend it to not lose your balance to fees. You could also invest your balance and hope that your monthly gains outstrip any applicable monthly fees. Or, you could roll it into an institution with low or no fees. I don't have a specific recommendation for a financial institution, but it looks like Google has some good options.
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