Is there now support for (Fidelity) HSA accounts?

pbmsmit

I had to renew my Fidelity accounts and 'suddenly' my Fidelity HSA account is included (since 9/15/2024) with detailed transactions. Does this mean there is now official support for HSAs in quicken and can I stop updating HSAs manually?

Quicken Kristina

Hello @pbmsmit,

I'm glad to hear you were able to connect your Fidelity HSA account!

So that we can look into this further and get you an answer to your question, is this HSA account with Fidelity Investments, or a different financial institution with Fidelity in their name?

I look forward to your reply!

pbmsmit

This is with Fidelity Investments. But is it really a new function that is not announced yet?

Quicken Kristina

Thank you for clarifying,

We're looking into it and will post back when we can give you a solid answer.

Thank you!

pbmsmit

FYI I had Fidelity NetBenefits (it didn't download the HSA account), I added Fidelity Investments for my IRA and it came back with 2 accounts: the IRA and the HSA account with data starting 9/15/2024. No earlier transactions, they are in the 'manual HSA' that I maintained for 2 years.

Quicken Jasmine

Hello @pbmsmit,

Fidelity is in the process of making changes towards HSAs, however, we do not have more details to share at this time.

Thanks!

pbmsmit

That is not why I'm asking. Quicken picked up my HSA since 9/15, that's why I'm asking confirmation whether there is support for HSA now or is it 'sleeping code'? It looks it is working.

Quicken Kristina

Thank you for your reply,

Unfortunately, the information @Quicken Jasmine stated is all the information we have available at this time. Have you contacted Fidelity to confirm if they intend to continue supporting the ability to connect HSAs in Quicken?

Thank you!

Brian Biggs

I have a Fidelity NetBenefits 401(k) and a newly created Fidelity HSA account.

I created an account in Quicken for the 401(k) a long time ago and have no issues with downloading transactions.

Today I tried to add the HSA Checking account to Quicken, but it doesn't appear as an available account when connecting with my Fidelity NetBenefits username and password. I chose Fidelity Investments instead, but Quicken creates the account as a Brokerage account instead of a Checking account.

I have no transactions in the HSA account yet, so I'll have to see if Brokerage will be sufficient going forward. I can see where it might not be when using the HSA card to pay for medical bills. I'm not sure how they will come through in the Quicken downloads.

NotACPA

@Brian Biggs Fidelity Investments is a brokerage firm, not a bank. Thus, legally, they can't offer true "checking accounts".

BUT, they can offer a money market account with a stable $1 value that ACTS much like a checking account. AND, at least in QWin, you can do TOOLS, Account List, click EDIT adjacent to the name of that brokerage account and check "Show cash in a Checking account". This will create a pseudo-account in Q that you can use in Q as-if it were a checking account.

Chris_QPW

Given the original question:

Does this mean there is now official support for HSAs in quicken and can I stop updating HSAs manually?

I think one thing needs to be clarified. There is a big difference between Quicken officially supporting HSAs and the ability to download an HSA account.

Depending on the arrangement of how the HSA is setup and features it supports it can be look as simple as a checking account or look like a brokerage account or even a combination of the two. I believe that this is the main reason why "HSA support" hasn't be added long ago, it is a much more complicated feature than people realize.

But "downloading" has always been there but depends on the financial institution. In other words, if the financial institution treats it as either a checking account or a brokerage account and tells Quicken it is that kind of account, then certainly transactions can be downloaded. And this has been true for a lot of financial institutions for a long time. Whether that will be "enough/correct" in your usage in Quicken is a whole other discussion because to really support this Quicken not only has to deal with the possible complicated account type arrangements, but it also has to deal with the tax/retirement ramifications.

Brian Biggs

Helpful info, @Chris_QPW and @NotACPA. Once I get money deposited into the account this year, I will try the Show cash in a Checking account option and see if that works how I want it to. Thanks!

Jim_Harman

I have been downloading a Fidelity HSA for a couple of years now. This is a personal HSA, not NetBenefits. It downloads as a single Investing account. Because Quicken does not have a special HSA account type, I have set it up in Quicken as a Roth IRA.

So far, I have used the account strictly as an investment account so I am not sure what the best setup would be if I were using it for ongoing medical expenses. IRAs in Quicken do not allow linked checking accounts. If you want to set up a linked checking account, I think the best option would be to set it up as a brokerage account with the Tax deferred option set to Yes.

Fidelity HSA accounts allow debit card access; presumably those transactions would download as Withdrawals in the HSA.

Brian Biggs

https://community.quicken.com/discussion/comment/20471260#Comment_20471260

@Jim_Harman, what financial institution do you use to download your transactions? I assume Fidelity Investments, since you said you don't have a NetBenefits account?

Jim_Harman

what financial institution do you use to download your transactions? I assume Fidelity Investments, since you said you don't have a NetBenefits account?

Right, the financial institution is Fidelity Investments and the connection type is Direct Connect.

Brian Biggs

I connected the brokerage account to Fidelity Investments. It downloaded two transactions into the account and marked them as Cleared (c). Not sure if I can turn that off. One transaction was my contribution, one was my employer's contribution. Then I entered my paycheck into my regular checking account, with transfers to the brokerage account (as I have always done in the past). That put a new single transaction (my contribution PLUS my employer's contribution) into the brokerage account and basically doubled the balance.

Then I configured the brokerage account to Show cash in a checking account. Quicken transferred all 3 transactions (plus the Opening Balance transaction of $0) to a new Checking account. The Brokerage account has no transactions anymore.

I'm assuming that future transactions in the Brokerage account will get transferred to the Checking account after download. So I guess the only caveat with this approach is that I have to manually delete those downloaded transactions to allow the balance to be correct. Not perfect, but manageable. But maybe future deposits to the cash account will come in differently since I set up that account after the first deposits had already come down?

Thanks to everyone for your suggestions and info. I'll post again when I get more transactions.