[Erin]

I will be enrolling in a HDHP for the first time and employer will contribute $600 yearly to the account which will be the employer affiliated account through WEX.

In terms of the ~4 k I can contribute to the account, can I contribute this directly to an account of my choosing (fidelity) or does it need to go through payroll and this must go to WEX?

I am reading about people having to manually transfer their money yearly into the account of their choice and am quite confused.

Some articles I’ve read online make it seem as though you need to request a withdrawal as if you are spending it on health care in order to get the funds and then put them into your own hsa account.

This seems overly complicated.

[Christopher]

Contributing through payroll is usually ideal because that’s the only way to avoid fica taxes (if you contribute from anything else, you you’ll get the usual tax deduction but nothing will claw back fica taxes).

If you’re fine with that tax hit, you can contribute elsewhere, but be mindful of the limits especially since your employers contributions will count against the total limit allowed for the year.

[Danielle]

I brought up my dislike of my company’s HSA as they use a small bank that pays hardly any interest and doesn’t allow you to invest.

My CEO listened and got HR to do something on the back end to have my payroll deduction be automatically routed to my fidelity HSA.

He was even willing to help set up the account which is why I’ve loved working for a small nonprofit

[Prasad]

Are you able to see what funds are available through WEX for you to invest in? Hope they provide some low cost index funds.

Payroll deductions will be the easiest.

[Erica]

anything with taxes and government oversight probably is overly complicated!

We like saving the additional 7.65% through payroll, so we mess with the transfer.

It’s really not difficult, but can be delayed a couple weeks.

[Elisa]

you can do what you want but it’s better to go through payroll as it reduces you’re taxable income. Then transfer to your HSA (at Fidelity or whatever) to make your investments.

The benefit of an HSA isis the triple tax savings- tax free to contribute, tax free growth & tax free withdrawals (with a few exceptions of course).

[Author]

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