HSA transfer gone awry

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Topic Author
bridge2benefits
Posts: 81
Joined: Sat May 07, 2022 10:53 pm

HSA transfer gone awry

Post by bridge2benefits »

About 6 weeks ago, I opened an HSA account at Fidelity and submitted a request that they transfer all of the funds from my Optum Bank HSA into my new account. After about 2 weeks, I received a notice from Optum that my account had been closed and any funds in my account had been transferred. After another 2 weeks, the funds still had not showed up in my Fidelity HSA.

I called Fidelity and they initiated a 3 way call with Optum. The Optum representative found a copy of a cleared check that had been correctly made out to Fidelity, directed to my new account. However, the back of the check showed that the check wasn't deposited by Fidelity; it was deposited by Sanford Health, into a Wells Fargo bank account.

The Fidelity representative explained to the Optum representative that Fidelity does not bank with Wells Fargo and Fidelity is not affiliated with Sanford Health. The Optum representative was not helpful, and kept insisting that the check had been cleared and that the copy of the check (that shows a mismatch in the name of the endorsor) is proof that Optum has already sent the funds to Fidelity.

I'm caught in the middle. Even though Fidelity was supposed to be handling the transfer on my behalf, they now say it is out of their control, and Optum is not being helpful. Fidelity suggested that because Optum is not being helpful, I could call Wells Fargo as a next step. I suppose I could also call Sanford Health? Any suggestions for ways to get this resolved quickly?
MrJedi
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Re: HSA transfer gone awry

Post by MrJedi »

Seems like Optum's fault to me. It seems like they sent the check to the wrong address. They also allowed a bad endorsement to clear your account (Wells Fargo could take some heat too for accepting a check with a wrong name on it).

The regulator who can help you here I think is the CFPB, since Optum I think is a bank that falls under their jurisdiction. I've had good luck with CFPB getting things moving in the right direction.
Topic Author
bridge2benefits
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Re: HSA transfer gone awry

Post by bridge2benefits »

MrJedi wrote: Thu Mar 23, 2023 7:13 am Seems like Optum's fault to me. It seems like they sent the check to the wrong address. They also allowed a bad endorsement to clear your account (Wells Fargo could take some heat too for accepting a check with a wrong name on it).

The regulator who can help you here I think is the CFPB, since Optum I think is a bank that falls under their jurisdiction. I've had good luck with CFPB getting things moving in the right direction.
Thanks for this suggestion about the CFPB - that wouldn't have occurred to me. I called Optum again today prepared to inform them that I would be filing a complaint, but I managed to get a somewhat more helpful representative this time. They are sending me a form for reporting fraudulent transactions.
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Calvert
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Re: HSA transfer gone awry

Post by Calvert »

bridge2benefits wrote: Thu Mar 23, 2023 5:30 am About 6 weeks ago, I opened an HSA account at Fidelity and submitted a request that they transfer all of the funds from my Optum Bank HSA into my new account. ....
My story is transferring an HSA account from Optum Bank to Lively took about 9 months. It would have been longer if I had not filed a complaint with the FDIC. I would suggest doing this as it takes a few weeks for a complaint to move thru the process. When it got to Optum, they assigned a manager to resolve my problems ... which then happened in days. Optum service reps could be rude or nice ... but they never really could address the issue.

You can look up your bank regulator at the following link. I pre-filled for Optum which has an FDIC number of 57408.

https://banks.data.fdic.gov/bankfind-su ... ltLimit=25

You can file the complaint online at the link below. I wrote a letter and then just copied into the parts of the FDIC form. I also sent the letter to Optum.

https://ask.fdic.gov/fdicinformationand ... uage=en_US
As a Registered User, you may submit a request, inquiry, or complaint about a financial institution, a bank failure, or deposit insurance coverage.
Good luck
just tryin' to understand the obvious
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TomatoTomahto
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Re: HSA transfer gone awry

Post by TomatoTomahto »

I know it's not a mature thing to do, but Optum's various PITA impediments to having transparency on my accounts have made me decide to empty my account by reimbursing myself for every little bill that shows up until it's empty. It's just not worth it for the favorable tax treatment if the end result is raising my blood pressure, which works against the "Health Savings."

A pox on them.
I get the FI part but not the RE part of FIRE.
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Minority Opinion
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Re: HSA transfer gone awry

Post by Minority Opinion »

bridge2benefits wrote: Thu Mar 23, 2023 5:30 am I called Fidelity and they initiated a 3 way call with Optum. The Optum representative found a copy of a cleared check that had been correctly made out to Fidelity, directed to my new account. However, the back of the check showed that the check wasn't deposited by Fidelity; it was deposited by Sanford Health, into a Wells Fargo bank account.

The Fidelity representative explained to the Optum representative that Fidelity does not bank with Wells Fargo and Fidelity is not affiliated with Sanford Health. The Optum representative was not helpful, and kept insisting that the check had been cleared and that the copy of the check (that shows a mismatch in the name of the endorsor) is proof that Optum has already sent the funds to Fidelity.

I'm caught in the middle. Even though Fidelity was supposed to be handling the transfer on my behalf, they now say it is out of their control, and Optum is not being helpful. Fidelity suggested that because Optum is not being helpful, I could call Wells Fargo as a next step. I suppose I could also call Sanford Health? Any suggestions for ways to get this resolved quickly?
There is nothing Fidelity can do since they have no authority over the account at Optum or Wells Fargo. This, unfortunately, falls to you as the account holder at Optum and it's going to involve you going through their fraud process. The good news is that you won't be out the money since Optum still owes you that money as long as you notify them of the issue in a timely manner. The bad news is, it's going to take effort on your part and time to get your funds back in your account and then sent to Fidelity. It's up to Optum and Wells Fargo to sort out what happened to the original check but that shouldn't be your problem even though Optum might try to make it your problem (at a guess, your check got mixed in with checks being sent to Sanford Health and Sanford Health just deposited everything that came into their PO Box without checking who it was payable to).
Topic Author
bridge2benefits
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Re: HSA transfer gone awry

Post by bridge2benefits »

Calvert wrote: Fri Mar 24, 2023 8:27 am My story is transferring an HSA account from Optum Bank to Lively took about 9 months. It would have been longer if I had not filed a complaint with the FDIC. I would suggest doing this as it takes a few weeks for a complaint to move thru the process. When it got to Optum, they assigned a manager to resolve my problems ... which then happened in days. Optum service reps could be rude or nice ... but they never really could address the issue.

You can look up your bank regulator at the following link. I pre-filled for Optum which has an FDIC number of 57408.
Thanks for this tip and the links!

Optum just sent me an email offering to send me a copy of the check, oblivious to the fact that they've already sent me a copy of the check 3 times within the past week. I wrote back asking to be put into contact with a manager who can initiate the process of filing an affidavit of account fraud, and I wrote that if Optum does not begin to help me to recover my funds, I will be filing formal complaints with the FDIC and the Consumer Financial Protection Bureau.
meadowrue
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Re: HSA transfer gone awry

Post by meadowrue »

How stressful and frustrating! I truly hope you get it all resolved. This is exactly why I’m terrified to transfer my HSA from UMB Bank to Fidelity. I would love to invest at Fidelity instead but I’m very nervous about the transfer process. Please update us!
“We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds.”—Aristotle Onassis
passive101
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Re: HSA transfer gone awry

Post by passive101 »

These companies need to stop all paper check transfers. This is terrible customer service.

I did recently transfer most of my funds from Optum Bank to Fidelity and it did work out alright. So it can work. I hope they are able to fix it quickly.

I'd contact Clark Howard and see which federal oversight people you can contact ASAP. They have a site to help people and you can call them!
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Kagord
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Re: HSA transfer gone awry

Post by Kagord »

If you have a copy (or when you get), how was the Payee line filled out? I would think it should have been "Fidelity FBO You". If so, you may be able to work with the bank/company that deposited to send to Fidelity. It's probably not fraud (likely no intent to deceive), more likely an error, IMHO, I wouldn't fill out fraud paperwork.
theplayer11
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Re: HSA transfer gone awry

Post by theplayer11 »

bridge2benefits wrote: Thu Mar 23, 2023 5:30 am About 6 weeks ago, I opened an HSA account at Fidelity and submitted a request that they transfer all of the funds from my Optum Bank HSA into my new account. After about 2 weeks, I received a notice from Optum that my account had been closed and any funds in my account had been transferred. After another 2 weeks, the funds still had not showed up in my Fidelity HSA.

I called Fidelity and they initiated a 3 way call with Optum. The Optum representative found a copy of a cleared check that had been correctly made out to Fidelity, directed to my new account. However, the back of the check showed that the check wasn't deposited by Fidelity; it was deposited by Sanford Health, into a Wells Fargo bank account.

The Fidelity representative explained to the Optum representative that Fidelity does not bank with Wells Fargo and Fidelity is not affiliated with Sanford Health. The Optum representative was not helpful, and kept insisting that the check had been cleared and that the copy of the check (that shows a mismatch in the name of the endorsor) is proof that Optum has already sent the funds to Fidelity.

I'm caught in the middle. Even though Fidelity was supposed to be handling the transfer on my behalf, they now say it is out of their control, and Optum is not being helpful. Fidelity suggested that because Optum is not being helpful, I could call Wells Fargo as a next step. I suppose I could also call Sanford Health? Any suggestions for ways to get this resolved quickly?
Have you called Sanford Health? They deposited a check that wasn't payable to them. It seems obvious that Optum had the payee correct, but mistakenly sent to the wrong bank. They should be contacting Sanford health themselves to fix this but I would call Sanford as well.
danaht
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Re: HSA transfer gone awry

Post by danaht »

Wow. This is scary. I transfer funds once a year from Optum to Fidelity. I hope this does not happen to one of my yearly transfers. I can't close my Optum account because my work uses it for the HSA payroll deposits. I am hoping Optum modernizes their system to allow for electronic transfers. One thing I could do is to tell my work to stop the payroll deductions for HSA - and then just contribute my yearly contribution to my HSA directly with Fidelity. This might be the last year of Optum HSA contributions and transfers for me after reading this post. I think I may lose a few tax benefits with Medicare and social security payroll taxes by doing this - but it's probably worth it.
passive101
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Re: HSA transfer gone awry

Post by passive101 »

danaht wrote: Sat Mar 25, 2023 7:39 am Wow. This is scary. I transfer funds once a year from Optum to Fidelity. I hope this does not happen to one of my yearly transfers. I can't close my Optum account because my work uses it for the HSA payroll deposits. I am hoping Optum modernizes their system to allow for electronic transfers. One thing I could do is to tell my work to stop the payroll deductions for HSA - and then just contribute my yearly contribution to my HSA directly with Fidelity. This might be the last year of Optum HSA contributions and transfers for me after reading this post. I think I may lose a few tax benefits with Medicare and social security payroll taxes by doing this - but it's probably worth it.
That's what I do now and it works smoothly. I let my employer do their small amount 1x a year into Optimum and I manually contribute monthly into Fidelity HSA.
invest4
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Re: HSA transfer gone awry

Post by invest4 »

While transfer issues are not new, the one described by OP is a bit spectacular for me.

Based upon my own experience, I have found the following to be critical for those who are making periodic transfers from their employer sponsored HSA to Fidelity or similar:

* Know the process well


- Minimum balance required to keep your employer HSA account open?

- Clear who the actual HSA entity is handling the transfer is and what is needed to be shown on the transfer form? For example, Alight...transfers handled via Wealthcare Saver on the form.


* Help them help you


- On your transfer form, type / write something like ***TRANSFER OF CASH ONLY - DO NOT CLOSE ACCOUNT**. It should be a surprise to no one that service reps. can make mistakes. Tilt the odds in your favor.
Topic Author
bridge2benefits
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Re: HSA transfer gone awry

Post by bridge2benefits »

Quick update - Optum sent me an email on Monday stating that my enquiry had been escalated, along with a reference number, and the email said to call with any questions. However, when I then called, the representative said they were still working on it and there was no update. I asked if I could speak with a manager and they said yes, supervisors were currently busy, but they would put me on the callback list. This was Monday and today is Friday, and I have not received a call from a manager.

Meanwhile, I did receive an email from Optum with a copy of their form "Affidavit of Forged Endorsement" along with instructions
"This affidavit should be completed by the payee disputing the endorsement of a check. This form must be notarized and the original must be mailed to us at the address at the bottom of the form. Please return form within 10 calendar days from date of Notary date. Investigation can take up to 120 calendar days."
Since the check had been made out to Fidelity, I sent the form to Fidelity and asked if they could assist me by submitting the form to Optum. Four days later I received a reply from Fidelity:
"My supervisor has advised that because Fidelity never received the check and because the check that Optum mailed was made payable FBO (for benefit of) your name, you must be the one to complete the form and submit it to Optum as the account owner. If you have questions on how to complete the form, please consult Optum as the distributor of the form."
So submitting this form to Optum is the next step for me. I also plan to file complaints against Optum with the FDIC and the Consumer Financial Protection Bureau, as suggested by posters above.
meadowrue
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Re: HSA transfer gone awry

Post by meadowrue »

bridge2benefits wrote: Fri Mar 31, 2023 10:43 am Quick update - Optum sent me an email on Monday stating that my enquiry had been escalated, along with a reference number, and the email said to call with any questions. However, when I then called, the representative said they were still working on it and there was no update. I asked if I could speak with a manager and they said yes, supervisors were currently busy, but they would put me on the callback list. This was Monday and today is Friday, and I have not received a call from a manager.

Meanwhile, I did receive an email from Optum with a copy of their form "Affidavit of Forged Endorsement" along with instructions
"This affidavit should be completed by the payee disputing the endorsement of a check. This form must be notarized and the original must be mailed to us at the address at the bottom of the form. Please return form within 10 calendar days from date of Notary date. Investigation can take up to 120 calendar days."
Since the check had been made out to Fidelity, I sent the form to Fidelity and asked if they could assist me by submitting the form to Optum. Four days later I received a reply from Fidelity:
"My supervisor has advised that because Fidelity never received the check and because the check that Optum mailed was made payable FBO (for benefit of) your name, you must be the one to complete the form and submit it to Optum as the account owner. If you have questions on how to complete the form, please consult Optum as the distributor of the form."
So submitting this form to Optum is the next step for me. I also plan to file complaints against Optum with the FDIC and the Consumer Financial Protection Bureau, as suggested by posters above.
Did you ever get this resolved? Looking to transfer my HSA from UMB to Fidelity and very curious to know if Fidelity got this sorted out for you.
“We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds.”—Aristotle Onassis
TropikThunder
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Re: HSA transfer gone awry

Post by TropikThunder »

meadowrue wrote: Thu Apr 13, 2023 10:36 am Did you ever get this resolved? Looking to transfer my HSA from UMB to Fidelity and very curious to know if Fidelity got this sorted out for you.
Fidelity had nothing to do with it.
meadowrue
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Re: HSA transfer gone awry

Post by meadowrue »

TropikThunder wrote: Thu Apr 13, 2023 12:19 pm
meadowrue wrote: Thu Apr 13, 2023 10:36 am Did you ever get this resolved? Looking to transfer my HSA from UMB to Fidelity and very curious to know if Fidelity got this sorted out for you.
Fidelity had nothing to do with it.
Oops, it was Optum! Sorry for the oversight. So that means I have just as much risk transferring from UMB Bank to Fidelity as OP had because the risk is with the originating bank (not with Fidelity). I’m still curious if OP got it sorted out.
“We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds.”—Aristotle Onassis
PapaSmushFace
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Re: HSA transfer gone awry

Post by PapaSmushFace »

Optum is notoriously bad. Just as an FYI to anyone reading this, avoid the Optum-to-Fidelity mistake that I made. In January, I starting moving my Optum HSA to Fidelity in $5,000 increments. The January transfer went fine, just took a few weeks. I tried to make the same transfer in February. Optum rejected the transfer. When I contacted Optum they said they thought it was as duplicate request. They approved it when I told them it wasn’t a duplicate. Optum then supposedly sent the money to Fidelity but after three weeks the money hadn’t arrived. Fidelity suggested I contact Optum, ask them to cancel and reissue the check. When I did so, Optum said they don’t send checks and instead the money is sent electronically. They told me to check back in three business days if Fidelity hadn’t received the money. Fidelity received the money on the third day so it does seem like Optum is capable of sending money electronically.

The morale of the story is if you are moving money from Optum in monthly increments, make sure each amount you send is different from the prior months.
kchnew
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Re: HSA transfer gone awry

Post by kchnew »

Thanks for the info. Also, did Optum charge the transfer fee in both cases?
Topic Author
bridge2benefits
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Re: HSA transfer gone awry

Post by bridge2benefits »

meadowrue wrote: Thu Apr 13, 2023 6:52 pm
TropikThunder wrote: Thu Apr 13, 2023 12:19 pm
meadowrue wrote: Thu Apr 13, 2023 10:36 am Did you ever get this resolved? Looking to transfer my HSA from UMB to Fidelity and very curious to know if Fidelity got this sorted out for you.
Fidelity had nothing to do with it.
Oops, it was Optum! Sorry for the oversight. So that means I have just as much risk transferring from UMB Bank to Fidelity as OP had because the risk is with the originating bank (not with Fidelity). I’m still curious if OP got it sorted out.
Well, Fidelity actually was involved, they were just not to blame, and, unlike Optum, they tried to help me. The issue is now resolved, though - Optum suddenly became very responsive once I filed a complaint with the Consumer Federal Protection Bureau. Big thanks to MrJedi for that recommendation!
meadowrue
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Re: HSA transfer gone awry

Post by meadowrue »

bridge2benefits wrote: Mon Apr 24, 2023 1:34 pm
meadowrue wrote: Thu Apr 13, 2023 6:52 pm
TropikThunder wrote: Thu Apr 13, 2023 12:19 pm
meadowrue wrote: Thu Apr 13, 2023 10:36 am Did you ever get this resolved? Looking to transfer my HSA from UMB to Fidelity and very curious to know if Fidelity got this sorted out for you.
Fidelity had nothing to do with it.
Oops, it was Optum! Sorry for the oversight. So that means I have just as much risk transferring from UMB Bank to Fidelity as OP had because the risk is with the originating bank (not with Fidelity). I’m still curious if OP got it sorted out.
Well, Fidelity actually was involved, they were just not to blame, and, unlike Optum, they tried to help me. The issue is now resolved, though - Optum suddenly became very responsive once I filed a complaint with the Consumer Federal Protection Bureau. Big thanks to MrJedi for that recommendation!
So glad you got it sorted out!
“We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds.”—Aristotle Onassis
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