Transfer of HSA Plan (Accounts)

[Guest dscurtis]

Must members (participants) the hold HSA investment account receive a 30 day blackout notice is the investment provider is changed? I'm thinking along the same lines as the blackout notice with a conversion of a 401(k) Plan.

[leevena]

The participant owns the HSA account, and as such, has full control, including changes of investment. It is the same as your personal checking or savings or investment account. Hope this helps.

[Guest dscurtis]

The participant owns the HSA account, and as such, has full control, including changes of investment. It is the same as your personal checking or savings or investment account. Hope this helps.

So does this mean that if the investment provide changes, the same funds need to be offered and re-registration needs to occur? No blackout notice is required? Also, does each participant need to sign off on an agreement to change investment provider under the plan?

[leevena]

If a change occurs, it is because the participant decided to make the change, not the employer. The employee can do whatever they want, within the regulations. HSA administrators will make available low-interest bearing accounts for smaller amounts of funds, and have options to transfer money to higher interest accounts. But again, it is the participant who chooses, just like you would choose bank accounts.

Since the employee is making the change, there would not be a blackout notice.

Your third question, about participant signature, does not apply because only the participant can make the change.