How do I avoid fees on my HSA account when I no longer have high deducible insurance?

Question

I no longer have  high deductible insurance.  My HSA holder is charging me $4 every month but it seem there is no way to avoid it.  It's too late to change my insurance and if I put the money into any other kind of account I will be hit with income tax and a penalty.  This is extortion.  All this because my company got bought out and my new company. doesn't pay the fees.

StephenWeinstein · Answer

You can switch to another "HSA holder" (the correct  "custodian") that does not chare this fee.  For example, First American Bank in Illinois offers HSA accounts without a monthly fee.

Anonymous · Answer

Find a different account.  Most have a no-fee at some sort of balance...and that some sort of balance will be lower with some than others.  And, while you can't make deposits, you still can use the funds for qualified medical expenses...deductibles, copays, co-insurance, non cosmetic dental work, prescription glasses, etc....

Casey Y · Answer

Find another bank.

Zarnev · Answer

You can try your local credit union. The credit unions in my area do not charge anything for the HSA accounts and the charges for the main checking and savings accounts are much less than the big box banks.

tro · Answer

you should have been offered some options at the buy out

Trivial One · Answer

You probably can't avoid fees entirely, but you could roll over the HSA to another custodian. I pay $2.50 a month for my HSA account. That still seems like a lot, but I make it up in investments (at least until about a week ago!) and tax advantages. Shop around for an administrator.

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How do I avoid fees on my HSA account when I no longer have high deducible insurance?

6 Answers