A trustee-to-trustee transfer occurs when your existing provider transfers your HSA funds directly to another trustee (the new HSA provider). Other than initiating the request, the account holder is not required to do anything else.
There are two types of trustee-to-trustee transfers: a partial balance transfer, which includes only the amount designated by the account holder and excludes investment funds; or a full balance transfer, which includes investment funds and the full account balance.
Account holders without investments may initiate the full or partial balance transfer process right away.
Account holders with investments must complete an In-Kind Transfer before initiating the trustee-to-trustee full or partial balance transfer. Skipping this step may result in complications and delays.
Step 1. Account holder logs in to their Lively account to initiate the transfer via the ‘HSA Transfers’ tab.
Step 2. Account holder receives an email from Lively containing a transfer form to be signed via Dropbox Sign within 1 business day. Lively cannot move on to the next step until this form is completed by the account holder.
Step 3. Lively electronically sends the signed form to your initial HSA provider. Typical timeline: Lively sends the form to the initial provider within 2 business days from the time the account holder signs the form.
Step 4. The provider receives the form, processes the request, and sends Lively a paper check* in the mail with your funds. *Paper checks are the industry standard. Typical timeline: Your initial provider may take several weeks to mail the check. Unfortunately, Lively cannot control the speed at which your initial provider completes this step. Please contact them directly for a status update at this time.
Step 5. Your check is in transit to Lively. Typical timeline: It can take 4-6 weeks (excl. weekends and holidays) from the date the check is mailed to Lively to when we receive it. USPS delays are common.
Step 6. Lively receives the check from your previous provider and deposits the check into your Lively HSA. Typical timeline: Funds will be available 5-6 business days after the paper check is delivered.
Step 7. Account holders are notified via email when funds are available in their Lively HSA account.
This type of transfer is best for account holders that do not need to access funds quickly. The trustee-to-trustee process can take up to 10 weeks and often has delays due to the initial HSA provider and mail service delays.
Full and Partial Balance Considerations
Some HSA providers may automatically cancel your HSA upon full balance withdrawal or charge a penalty fee on lower balances. Please contact your initial HSA provider to learn what happens upon withdrawal.Updated: