Most employer HSAs charge fees and offer terrible investment options. The move: keep what you need for current medical expenses in your employer HSA, then transfer the rest to Fidelity or Lively annually.
Typical employer HSA problems: 0.5–1% annual admin fees, investment options limited to 8–10 funds with 0.5%+ expense ratios, $1,000+ balance required before you can invest, and clunky interfaces. You are paying fees on an account that should be growing tax-free for decades.
$0 admin fees. $0 minimum to invest. Full access to Fidelity's fund lineup including FZROX (zero expense ratio total market fund) and FZILX (zero ER international). No other HSA provider matches this combination. Open directly at fidelity.com.
Lively charges $0 admin fees and invests through a linked Schwab account. Good fund selection. Slightly more setup friction than Fidelity. Solid choice if you prefer the Schwab ecosystem.
Same thing you would put in a Roth IRA: a total market index fund. At Fidelity: FZROX (0.00% expense ratio) or FSKAX (0.015%). The HSA is a long-term investment vehicle, not a spending account. Keep a small cash buffer ($500–1,000) for current-year medical expenses; invest the rest. See HSA Deep-Dive for the full strategy.
Use a trustee-to-trustee transfer (not a rollover). This has no tax consequences. You are allowed one transfer per year. The receiving institution (Fidelity/Lively) initiates the transfer — contact them, provide your current HSA details, and they handle the paperwork. Takes 2–4 weeks. Your employer HSA stays open for payroll contributions; you just move the invested balance annually.
Last updated 2026-04-15. Verify current provider terms before opening an account.