If you’re interested in consolidating your investments with one broker, transferring all of your accounts may seem like a daunting task.
However, most brokerages provide a seamless way to initiate transfers online. By simply entering your transfer request, providing the broker currently holding your assets, entering your account type and number, your new broker will do the heavy lifting for you!
Transferring my HSA to Fidelity
I recently decided it was time to consolidate the 4+ brokers I was using to a single platform.
Since I closely track my holdings and monitor performance each month, it became tiring logging into each account. Ultimately, I got tired of dealing with multiple account statements. Receiving tax forms at different times and remembering multiple logins became more trouble than it was worth. Further, navigating the different nuances of each site got old quickly.
Recently, the largest brokers (Fidelity, Schwab, TD Ameritrade, Ally, and E*TRADE) cut commissions to $0, so I decided there was little difference in their offerings for my long-term investing. Why would I want the hassle of dealing with multiple brokerage companies?
Plus, my current employer decided to switch to Fidelity as the HSA custodian who is also our 401(k) custodian.
It was time to consolidate my accounts under my favorite broker. Having all of my accounts in one place just made sense.
The ability to hold my various accounts (employer-sponsored, ordinary brokerages, 529 Plan, Roth IRAs and Rollover IRAs) was another positive.
Having a single, reputable broker with exceptional service simplified my life!
Here are the steps I took to transfer my Health Savings Account (HSA) holdings from TD Ameritrade to Fidelity:
1. Log-in or Create Fidelity account
If you already have an account with Fidelity, the process is very streamlined. Simply go to Fidelity.com and log into your active account by using your username and password.
Then, proceed to Step 2!
However, if you’re a new Fidelity client, you’ll need to open an account with Fidelity. No worries! The process is very simple.
Opening a Health Savings Account with Fidelity for your transfer
If you don’t have an account with Fidelity, go to Fidelity.com and click “Open an Account.” You will receive the prompt below. You can then select the type of account you wish to open from the various options.
Since we’re demonstrating how to transfer a HSA from one broker to Fidelity, you can click on “See all accounts” which will allows you to click “Saving for medical expenses.”
You’ll then have the option to open a HSA through Fidelity as shown below.
Remember, HSAs are only permitted when you enroll in a qualified, high-deductible healthcare plan (HDHP). Ensure your plan is qualified before enrolling in a HSA!
2. Transferring your HSA assets to Fidelity
After you’re logged into your account with Fidelity, it’s time to initiate the transfer from your old broker.
Select the “Transfer” icon from the top menu bar. Then, select “Transfer From” which will give you the ability to select “Another Financial Institution.”
After clicking “Continue,” you’ll be given a screen that helps you decide if a transferring is the right method for your account. As shown below, you can transfer all or part of your investment account including retirement accounts and HSAs.
3. Start a transfer
The next step is to actually initiate the transfer to Fidelity.
You’ll have to select your old broker from the popular options provided. Alternatively, you can search for your account custodian if you do not see your broker listed.
4. Enter your account number
The next step is to obtain the account number for your HSA. You can find your account number from your account statements and/or tax documents.
Then, enter your account number and type.
After you click “next,” Fidelity will provide which accounts are eligible to move your assets. For instance, you won’t be able to move an HSA from another broker to an IRA or ordinary brokerage account with Fidelity. The account needs to be transferred into the same type of account.
Therefore, you’ll need to have (or open) a qualified HSA to receive the transfer.
Further, Fidelity will provide the option to transfer “in-kind” or settle in cash. I personally transferred “in-kind” rather than having my old broker liquidate my holdings and transfer the cash to Fidelity. This allowed me to keep my cost basis and current index fund positions.
5. Let Fidelity do the rest!
Once you’ve done the four previous steps, the ball is in Fidelity’s court!
When you submit your transfer request, Fidelity contacts your old broker on your behalf. They will process the request and transfer your positions to Fidelity.
You’ll then see your assets deposited into your Fidelity account in just a matter of a few days.
As you can see, the process is fairly simple and Fidelity has helpful customer service if you run into any issues along the way.