Trustees for HSA's account are making out like bandits!

[Brenda Wren]

We have just taken the plunge to high deductible insurance plans and HSA's. But I am very disappointed with the limited options on who will serve as Trustee for the HSA's and how much they are paid to do it. Seems to me that the banks take all the money, do little if anything to service the account and are making a killing in fees. The bank trustee we are using charges a $3 monthly fee, $1.50 for each electronic debit plus numerous other typical bank fees. No statement is generated; only available on the web. A 1099 is generated each year. The account holder is fully responsible for determining the amount of the deductible contribution and the qualification of the disbursements. All services appear to be electronic and no human intervention is needed to maintain the account. I could accept the fees of $50 or so per year, per participant if at some point the fees were waived if the account balance exceeded $2500 or something.

I also have discovered that part of the $36 annual service fees are going back to the agent, I suppose to compensate him for the lower commission he earns for the high-deductible plan he sold.

Does anyone know of a bank that is willing to serve as Trustee for less? Maybe I should apply to the IRS to become a non-bank trustee for HSA's!