Investing - Theory, News & General • HSA Bank eliminating investment options

When you're in CA, your HSA contributions are not state-tax deductible. It would be reported on your W2 for contributions from your paycheck while a tax resident of California.

Payroll HSA contributions are exempt from FICA taxes, as others have noted.

In terms of planning for a move to CA (or NJ) from a state that does not tax HSAs:

- Consider selling and repurchasing any tax lots with an unrealized capital gain before the move to increase the cost basis (e.g. tax-gain harvesting).
- Consider tax-loss harvesting any lots with unrealized losses after moving to CA. You could then deduct those losses from your CA income, though it complicates your state return.
- If moving mid-year, consider frontloading contributions before moving to potentially avoid state taxation that year.

I am satisfied with the tax reporting tools at Fidelity on the Desktop site. While the "Tax Info YTD" page isn't available for HSAs, I am able to view my "Realized Gain/Loss Summary", and have a filter for my year-to-date Dividends/Interest on the "Activity & Orders" tab.

Thanks for the tips. I'll sell/repurchase unrealized capital gains before moving to CA

For people using Fidelity for HSA, is everyone just eating the $2.50 fee as a cost of being able to use Fidelity or is there an uncomplicated way to get it waived?

I have no idea what $2.50 fee you are talking about. Fidelity charges no fees for it's HSAs.

The HSA Bank fee for having a cash balance below a certain threshold, whether it's $3,000 or $5,000. It's not something I've ever previously thought about given the relationship between Schwab and HSA Bank, but now would be the case if like everyone else I transfer nearly everything to Fidelity (leaving a small amount behind to keep HSA Bank active)

Statistics: Posted by tj — Wed Aug 28, 2024 9:04 pm — Replies 353 — Views 46581